Hershey Co (HSY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,714,650 | 4,099,090 | 3,299,540 | 2,757,230 | 2,237,880 |
| ROE | 47.11% | 45.42% | 49.85% | 53.59% | 57.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,221,240K ÷ $4,714,650K
= 47.11%
Hershey Co's return on equity (ROE) has shown a gradual decline over the past five years, decreasing from 57.14% as of December 31, 2020, to 47.11% as of December 31, 2024. This downward trend indicates a diminishing ability of the company to generate profits from the shareholders' equity invested in the business.
While a ROE of 47.11% is still considered relatively high, it is important to note the decreasing trend as it may raise concerns among investors and stakeholders. A declining ROE could suggest inefficiencies in the company's operations, lower profitability, or a less effective utilization of shareholders' equity to generate earnings.
It would be beneficial for Hershey Co to assess the factors contributing to the decline in ROE and implement strategies to improve efficiency, profitability, and overall performance to enhance shareholder value in the future.
Peer comparison
Dec 31, 2024