Hershey Co (HSY)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,726,717 | 2,411,824 | 2,580,695 | 2,807,239 | 2,532,217 | 2,482,061 | 2,300,714 | 2,207,757 | 2,136,169 | 2,196,482 | 2,221,871 | 2,221,873 | 2,055,738 | 2,020,380 | 2,048,783 | 1,967,594 | 1,808,576 | 1,760,108 | 1,607,808 | 1,647,429 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,714,650 | 4,204,970 | 4,009,870 | 4,108,290 | 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 | 2,237,880 | 2,065,850 | 1,753,600 | 1,671,230 |
| Return on total capital | 57.83% | 57.36% | 64.36% | 68.33% | 61.78% | 62.56% | 62.27% | 63.84% | 64.74% | 71.24% | 76.84% | 76.21% | 74.56% | 79.91% | 90.45% | 87.22% | 80.82% | 85.20% | 91.69% | 98.58% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,726,717K ÷ ($—K + $4,714,650K)
= 57.83%
Hershey Co's return on total capital has shown a general declining trend over the period from March 31, 2020, to December 31, 2024. The ratio started at a high of 98.58% in March 2020 but decreased gradually to 57.83% by December 2024. This indicates that the company's ability to generate profits from its total capital has decreased over time. It is important for the company to analyze the reasons behind this trend and consider potential strategies to improve its return on total capital in order to enhance overall financial performance and efficiency.
Peer comparison
Dec 31, 2024