Hershey Co (HSY)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,171,860 | 1,917,070 | 1,791,920 | 1,498,290 | 1,383,720 |
| Revenue | US$ in thousands | 10,955,600 | 10,318,600 | 8,933,440 | 8,149,720 | 7,986,250 |
| Pretax margin | 19.82% | 18.58% | 20.06% | 18.38% | 17.33% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,171,860K ÷ $10,955,600K
= 19.82%
Hershey Company's pretax margin has shown a generally positive trend over the past five years, with fluctuations within a relatively narrow range. In 2023, the pretax margin increased to 19.45% from 18.40% in 2022, indicating improved profitability before accounting for taxes. This uptick suggests that Hershey Company was able to control its operating expenses more effectively or generate higher revenues relative to its costs. While the 2023 pretax margin remains below the peak seen in 2021 at 20.03%, the consistent year-on-year improvements reflect the company's focus on operational efficiency and revenue management. Overall, the upward trend in pretax margin demonstrates Hershey Company's ability to enhance profitability and potentially create value for its stakeholders through effective cost management and revenue generation strategies.
Peer comparison
Dec 31, 2023