Hershey Co (HSY)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 11,902,900 | 11,935,700 | 11,525,700 | 11,111,500 | 10,948,800 | 10,832,900 | 10,588,900 | 10,645,000 | 10,412,200 | 9,439,180 | 8,883,860 | 9,038,130 | 9,131,840 | 9,255,030 | 8,911,070 | 8,855,440 | 8,140,400 | 8,464,260 | 7,793,560 | 7,857,380 |
| Debt-to-assets ratio | 0.32 | 0.34 | 0.35 | 0.30 | 0.31 | 0.31 | 0.32 | 0.38 | 0.39 | 0.43 | 0.46 | 0.45 | 0.45 | 0.44 | 0.46 | 0.39 | 0.43 | 0.40 | 0.37 | 0.41 |
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 been relatively stable over the past eight quarters, ranging from 0.40 to 0.47. This ratio indicates the proportion of the company's assets that are financed through debt, with a lower ratio typically signaling lower financial risk.
Hershey's debt-to-assets ratio has hovered around the mid-40% range, suggesting that a significant portion of the company's assets are financed by debt. While the ratio did dip to 0.40 in Q4 2023, it generally remained within a narrow range, indicating consistent capital structure management.
Overall, Hershey Company's debt-to-assets ratio reflects a moderate level of leverage, which could be a strategic choice to take advantage of favorable interest rates or to support growth initiatives. Nonetheless, monitoring this ratio over time can provide insights into the company's financial health and risk management practices.
Peer comparison
Dec 31, 2023