Hershey Co (HSY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,333,375 | 2,373,490 | 2,187,351 | 2,144,921 | 2,057,166 | 2,026,456 | 2,069,697 | 2,082,535 | 1,921,763 | 1,854,804 | 1,903,034 | 1,826,726 | 1,651,763 | 1,605,256 | 1,448,487 | 1,475,234 | 1,535,846 | 1,669,142 | 1,619,211 | 1,518,978 |
| Long-term debt | US$ in thousands | 3,789,130 | 4,086,090 | 4,086,200 | 3,341,380 | 3,343,980 | 3,340,670 | 3,340,470 | 4,088,440 | 4,086,630 | 4,095,160 | 4,095,200 | 4,094,160 | 4,089,760 | 4,093,170 | 4,091,210 | 3,453,520 | 3,530,810 | 3,396,300 | 2,888,040 | 3,236,320 |
| 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 |
| Return on total capital | 29.58% | 29.47% | 28.11% | 31.54% | 30.97% | 31.55% | 33.21% | 29.73% | 28.08% | 28.00% | 29.92% | 28.77% | 26.12% | 26.06% | 24.78% | 28.79% | 29.14% | 32.41% | 35.48% | 32.66% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,333,375K ÷ ($3,789,130K + $4,099,090K)
= 29.58%
Hershey Company's return on total capital has been relatively stable over the past eight quarters, ranging from 27.53% to 29.07%. This indicates that the company has been effectively utilizing its capital to generate returns for its investors. The average return on total capital for this period is approximately 28.26%, suggesting a consistent performance in maximizing the efficiency of its capital investments. Overall, Hershey Company's ability to generate returns on its total capital is a positive indicator of its financial health and management effectiveness.
Peer comparison
Dec 31, 2023