Hershey Co (HSY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.32% | 44.77% | 43.18% | 45.13% | 45.42% |
| Operating profit margin | 25.87% | 22.94% | 16.10% | 17.98% | 16.90% |
| Pretax margin | 22.08% | 19.45% | 18.40% | 20.03% | 18.34% |
| Net profit margin | 19.83% | 16.68% | 15.79% | 16.47% | 15.69% |
The Gross Profit Margin for Hershey Co has shown a slight decrease from 45.42% in December 31, 2020, to 43.18% in December 31, 2022, before increasing to 47.32% by December 31, 2024, indicating fluctuations in the company's ability to generate profit from its sales after considering the cost of goods sold.
The Operating Profit Margin has displayed some variability, starting at 16.90% on December 31, 2020, peaking at 25.87% on December 31, 2024. This metric reflects the company's efficiency in managing its operating expenses relative to its revenue.
The Pretax Margin for Hershey Co has generally been on an upward trend, increasing from 18.34% on December 31, 2020, to 22.08% by December 31, 2024. This indicates the company's ability to control its pre-tax costs and expenses effectively to enhance profitability before considering taxes.
The Net Profit Margin, highlighting the company's bottom-line profitability, has shown consistent growth from 15.69% on December 31, 2020, to 19.83% by December 31, 2024, demonstrating Hershey Co's ability to effectively manage its cost structure and generate net income relative to its total revenue over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.39% | 21.51% | 15.32% | 15.49% | 15.08% |
| Return on assets (ROA) | 17.16% | 15.64% | 15.02% | 14.19% | 14.00% |
| Return on total capital | 56.17% | 56.92% | 62.02% | 69.49% | 73.23% |
| Return on equity (ROE) | 47.11% | 45.42% | 49.85% | 53.59% | 57.14% |
The profitability ratios of Hershey Co show a positive trend over the past five years.
1. Operating return on assets (Operating ROA) has improved from 15.08% in 2020 to 22.39% in 2024, indicating that the company generated increasing operating profits relative to its assets over the period.
2. Return on assets (ROA) has also shown growth, rising from 14.00% in 2020 to 17.16% in 2024. This suggests that Hershey Co became more efficient in generating profits from its total assets.
3. Return on total capital has declined from 73.23% in 2020 to 56.17% in 2024, indicating a decrease in the company's ability to generate returns for all its invested capital.
4. Return on equity (ROE) has demonstrated a downward trend, dropping from 57.14% in 2020 to 47.11% in 2024. This suggests a decrease in the returns generated for the shareholders' equity over the years.
Overall, Hershey Co has shown strong profitability in terms of operating and asset returns, although there has been some decline in returns related to total capital and equity.