Hershey Co (HSY)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,861,787 | 1,909,041 | 1,789,951 | 1,698,524 | 1,644,817 | 1,584,077 | 1,629,517 | 1,615,191 | 1,477,512 | 1,433,343 | 1,435,699 | 1,403,370 | 1,278,708 | 1,194,508 | 1,072,532 | 1,116,471 | 1,149,692 | 1,279,296 | 1,217,702 | 1,131,717 |
| Total stockholders’ equity | US$ in thousands | 4,099,090 | 3,967,640 | 3,694,780 | 3,458,360 | 3,299,540 | 3,083,080 | 2,891,740 | 2,915,550 | 2,757,230 | 2,528,290 | 2,265,050 | 2,255,990 | 2,234,350 | 2,065,850 | 1,753,600 | 1,671,230 | 1,739,220 | 1,753,160 | 1,675,120 | 1,414,740 |
| ROE | 45.42% | 48.12% | 48.45% | 49.11% | 49.85% | 51.38% | 56.35% | 55.40% | 53.59% | 56.69% | 63.38% | 62.21% | 57.23% | 57.82% | 61.16% | 66.81% | 66.10% | 72.97% | 72.69% | 79.99% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,861,787K ÷ $4,099,090K
= 45.42%
Over the past eight quarters, Hershey Company's return on equity (ROE) has displayed a generally decreasing trend. From Q1 2022 to Q4 2023, the ROE has declined from 55.40% to 45.42%. This downward trend indicates that the company's ability to generate profits from its shareholders' equity has weakened over time.
While the ROE figures for Q2 and Q3 of 2022 stood significantly higher at 56.35% and 51.38% respectively, the subsequent quarters have shown a consistent decrease. This decline suggests potential challenges in effectively utilizing shareholder investments to generate returns.
It is important for Hershey Company to assess the factors contributing to this decline in ROE, as a lower ROE may indicate inefficiencies in the utilization of equity capital or declining profitability. Monitoring and improving ROE performance are essential for sustaining shareholder confidence and ensuring long-term financial health.
Peer comparison
Dec 31, 2023