Hershey Co (HSY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,333,380 | 2,057,170 | 1,921,760 | 1,651,760 | 1,535,850 |
| Long-term debt | US$ in thousands | 3,789,130 | 3,343,980 | 4,086,630 | 4,089,760 | 3,530,810 |
| Total stockholders’ equity | US$ in thousands | 4,099,090 | 3,299,540 | 2,757,230 | 2,234,350 | 1,739,220 |
| Return on total capital | 29.58% | 30.97% | 28.08% | 26.12% | 29.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,333,380K ÷ ($3,789,130K + $4,099,090K)
= 29.58%
Hershey Company's return on total capital has been relatively stable over the past five years, ranging from 26.29% in 2021 to 28.74% in 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its shareholders. The consistent performance suggests a strong ability to generate returns on the capital invested in the business. The slight fluctuations in the return on total capital show that Hershey Company has maintained a solid operational efficiency and profitability over the years. Overall, the company's consistent and healthy return on total capital reflects its strong financial performance and effective management of resources.
Peer comparison
Dec 31, 2023