Hershey Co (HSY)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,099,090 | 3,299,540 | 2,757,230 | 2,234,350 | 1,739,220 |
| Debt-to-capital ratio | 0.48 | 0.50 | 0.60 | 0.65 | 0.67 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,789,130K ÷ ($3,789,130K + $4,099,090K)
= 0.48
The debt-to-capital ratio of Hershey Company has exhibited a decreasing trend over the past five years, declining from 0.71 in 2019 to 0.54 in 2023. This suggests that the company has been relying less on debt financing relative to its total capital structure. A lower debt-to-capital ratio indicates that Hershey is becoming less leveraged and may have a stronger financial position with reduced risk associated with debt obligations. It also implies that a larger proportion of the company's capital structure is funded by equity, which could be viewed positively by investors and creditors. Overall, the decreasing trend in the debt-to-capital ratio of Hershey Company signals potential improvements in its financial stability and risk management.
Peer comparison
Dec 31, 2023