Hershey Co (HSY)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,202,260 | 10,971,830 | 11,014,330 | 11,430,130 | 11,164,990 | 11,160,220 | 10,858,380 | 10,740,680 | 10,419,290 | 10,093,080 | 9,724,770 | 9,341,610 | 8,971,340 | 8,830,450 | 8,690,440 | 8,408,350 | 8,149,720 | 8,032,600 | 7,947,190 | 8,007,080 |
| Total assets | US$ in thousands | 12,946,900 | 12,621,400 | 12,415,700 | 12,389,800 | 11,902,900 | 11,935,700 | 11,525,700 | 11,111,500 | 10,948,800 | 10,832,900 | 10,588,900 | 10,645,000 | 10,412,200 | 9,439,180 | 8,883,860 | 9,038,130 | 9,131,840 | 9,255,030 | 8,911,070 | 8,855,440 |
| Total asset turnover | 0.87 | 0.87 | 0.89 | 0.92 | 0.94 | 0.94 | 0.94 | 0.97 | 0.95 | 0.93 | 0.92 | 0.88 | 0.86 | 0.94 | 0.98 | 0.93 | 0.89 | 0.87 | 0.89 | 0.90 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $11,202,260K ÷ $12,946,900K
= 0.87
The total asset turnover ratio calculates how efficiently a company is utilizing its assets to generate revenue. In the case of Hershey Co, the total asset turnover ratio has fluctuated over the period analyzed. It ranged from a low of 0.86 in December 2021 to a high of 0.98 in June 2021. Generally, a higher total asset turnover ratio indicates better efficiency in asset utilization.
Hershey Co's total asset turnover ratio saw some volatility, with peaks and troughs, but overall it stayed within a relatively narrow range. The company's ability to generate sales from its assets appears to have improved towards the end of the period, with the ratio rising to 0.94 in December 2023. However, by the end of the analyzed period in December 2024, the total asset turnover ratio had decreased to 0.87.
It is important for Hershey Co to monitor its total asset turnover ratio closely to ensure efficient asset management and maximization of revenue generation. The company may need to identify opportunities to improve operational efficiency and streamline its asset utilization to maintain or increase the total asset turnover ratio in the future.
Peer comparison
Dec 31, 2024