Hershey Co (HSY)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,861,790 | 1,644,820 | 1,477,510 | 1,278,710 | 1,149,690 |
| Total assets | US$ in thousands | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 | 8,140,400 |
| ROA | 15.64% | 15.02% | 14.19% | 14.00% | 14.12% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,861,790K ÷ $11,902,900K
= 15.64%
The return on assets (ROA) for Hershey Company has shown a generally positive trend over the past five years, with the ROA increasing from 14.12% in 2019 to 15.64% in 2023. This indicates the company's ability to generate profit relative to its total assets has been improving.
Hershey Company's ROA has consistently remained above 14% over the period, which suggests efficient asset utilization and profitability. The company's management has been successful in generating earnings from its assets, reflecting effective operational performance and financial management.
The gradual increase in ROA indicates that Hershey Company has been able to enhance its profitability and efficiency in utilizing its assets to generate returns for shareholders. This consistent improvement in ROA demonstrates the company's strong financial health and sustainable growth prospects.
Peer comparison
Dec 31, 2023