Hershey Co (HSY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,099,090 | 3,299,540 | 2,757,230 | 2,234,350 | 1,739,220 |
| ROE | 45.42% | 49.85% | 53.59% | 57.23% | 66.10% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,861,790K ÷ $4,099,090K
= 45.42%
The return on equity (ROE) for Hershey Company has been declining over the past five years. From 66.10% in 2019, it dropped to 57.23% in 2020, 53.59% in 2021, 49.85% in 2022, and further decreased to 45.42% in 2023. This downward trend indicates that the company's profitability relative to its equity base has been decreasing over time. It could be a sign of less efficient utilization of shareholder equity to generate profits, increased expenses, lower net income, or a combination of these factors. Hershey Company may need to assess its operational efficiency, cost structure, and revenue generation strategies to improve its ROE in the future.
Peer comparison
Dec 31, 2023