Hershey Co (HSY)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,560,870 | 2,260,790 | 2,043,720 | 1,782,700 | 1,595,950 |
| Total assets | US$ in thousands | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 | 8,140,400 |
| Operating ROA | 21.51% | 20.65% | 19.63% | 19.52% | 19.61% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,560,870K ÷ $11,902,900K
= 21.51%
Hershey Company's operating return on assets (ROA) has shown a relatively positive trend over the past five years. The operating ROA increased from 21.09% in 2019 to 21.52% in 2023, with minor fluctuations in between. This indicates that the company has been effectively generating operating profits relative to its total assets over the years.
A higher operating ROA reflects the company's efficiency in utilizing its assets to generate operating income. Hershey Company's consistent performance in this metric suggests sound operational management and effective utilization of its asset base to drive profitability.
Overall, Hershey Company's operating return on assets demonstrates a strong operational performance and efficient asset utilization, which is a positive indicator of the company's financial health and management effectiveness.
Peer comparison
Dec 31, 2023