Hershey Co (HSY)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,221,240 | 1,861,790 | 1,644,820 | 1,477,510 | 1,278,710 |
| Total assets | US$ in thousands | 12,946,900 | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 |
| ROA | 17.16% | 15.64% | 15.02% | 14.19% | 14.00% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,221,240K ÷ $12,946,900K
= 17.16%
Based on the data provided, Hershey Co's return on assets (ROA) has shown a positive trend over the last five years, starting at 14.00% on December 31, 2020, and increasing to 17.16% by December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate profits for its shareholders.
The consistent increase in ROA suggests that Hershey Co's management has been successful in improving the efficiency of its asset utilization over time. A higher ROA is generally seen as favorable as it indicates that the company is generating more profits relative to its total assets.
It is important for investors and stakeholders to monitor ROA trends to assess the company's profitability and efficiency in generating returns from its investments. Overall, Hershey Co's increasing ROA is a positive indicator of its operational performance and effective asset management.
Peer comparison
Dec 31, 2024