Hershey Co (HSY)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,789,130 | 3,343,980 | 4,086,630 | 4,089,760 | 3,530,810 |
| Total assets | US$ in thousands | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 | 8,140,400 |
| Debt-to-assets ratio | 0.32 | 0.31 | 0.39 | 0.45 | 0.43 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,789,130K ÷ $11,902,900K
= 0.32
The debt-to-assets ratio of Hershey Company has shown a declining trend over the past five years, decreasing from 0.52 in 2019 to 0.40 in 2023. This indicates that the company has been relying less on debt to finance its assets over the years. A lower debt-to-assets ratio suggests a lower financial risk as the company has a smaller proportion of debt in relation to its total assets. Hershey Company's improving debt management may suggest a stronger financial position and better ability to meet its financial obligations. However, it is important to note that the optimal level of debt-to-assets ratio can vary between industries and companies, so it is essential to consider industry benchmarks and company-specific factors when analyzing this ratio in isolation.
Peer comparison
Dec 31, 2023