Hershey Co (HSY)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 2,234,350 | 2,065,850 | 1,753,600 | 1,671,230 | 1,739,220 | 1,753,160 | 1,675,120 | 1,414,740 |
| Debt-to-equity ratio | 0.92 | 1.03 | 1.11 | 0.97 | 1.01 | 1.08 | 1.16 | 1.40 | 1.48 | 1.62 | 1.81 | 1.81 | 1.83 | 1.98 | 2.33 | 2.07 | 2.03 | 1.94 | 1.72 | 2.29 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,789,130K ÷ $4,099,090K
= 0.92
The debt-to-equity ratio of Hershey Company has shown a fluctuating trend over the past eight quarters. The ratio has ranged from 1.17 in Q4 2023 to 1.73 in Q2 2022.
A higher debt-to-equity ratio indicates that the company is more heavily reliant on debt financing to fund its operations and expansion, compared to equity financing. It is worth noting that a ratio above 1 suggests that the company has more debt than equity in its capital structure.
The trend of increasing debt-to-equity ratios from 1.45 in Q4 2022 to 1.39 in Q1 2023 reflects a greater proportion of debt in the company's capital structure during this period. This may indicate an increase in debt levels relative to equity, which could potentially lead to higher financial risk for the company.
Overall, it is essential for investors and stakeholders to closely monitor Hershey Company's debt-to-equity ratio and its trend over time to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023