Hershey Co (HSY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.75 | 2.90 | 3.32 | 3.78 | 4.08 |
Based on the provided data for Hershey Co's solvency ratios, it is evident that the company has consistently maintained a very strong financial position in terms of debt-related metrics.
The Debt-to-assets ratio, also known as the debt ratio, measures the proportion of a company's assets financed by debt. Hershey Co's debt-to-assets ratio has remained at 0.00 for all the years from 2020 to 2024. This indicates that the company has not relied on debt to finance its assets, signifying a low financial risk.
The Debt-to-capital ratio measures the percentage of a company's capital that is financed by debt. Hershey Co's debt-to-capital ratio has also been at 0.00 for all the years, suggesting that the company's capital structure is not significantly reliant on debt, which is a positive indicator of financial health.
The Debt-to-equity ratio, which compares a company's total debt to its shareholders' equity, has consistently been at 0.00 for Hershey Co from 2020 to 2024. This implies that the company has no debt in its capital structure relative to its equity, further reinforcing its strong financial position.
The Financial leverage ratio, calculated as total assets divided by shareholders' equity, has been decreasing over the years from 4.08 in 2020 to 2.75 in 2024. This decreasing trend signifies that the company is relying less on debt financing and becoming more equity-funded, which is typically viewed favorably by investors.
Overall, Hershey Co's solvency ratios indicate a very low level of debt relative to its assets and equity, coupled with a decreasing trend in financial leverage, showcasing the company's robust financial health and strong solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 15.99 | 14.45 | 14.88 | 15.04 | 10.97 |
Hershey Co's interest coverage ratio has displayed a consistently healthy trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has shown an upward trajectory from 10.97 in December 2020 to 15.99 in December 2024. This signifies that Hershey Co's operating income is more than sufficient to cover its interest expenses, with the highest coverage observed in December 2024. The company's strong interest coverage ratio reflects a favorable financial position and suggests a lower risk of default on its debt obligations. Overall, the trend in Hershey Co's interest coverage ratio highlights the company's robust financial health and ability to manage its debt obligations effectively.