Hershey Co (HSY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,946,900 | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 |
| Total stockholders’ equity | US$ in thousands | 4,714,650 | 4,099,090 | 3,299,540 | 2,757,230 | 2,237,880 |
| Financial leverage ratio | 2.75 | 2.90 | 3.32 | 3.78 | 4.08 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,946,900K ÷ $4,714,650K
= 2.75
The financial leverage ratio of Hershey Co has been trending downwards over the past five years, decreasing from 4.08 in December 31, 2020, to 2.75 in December 31, 2024. This indicates that the company has been relying less on debt to finance its operations and investments, which can be seen as a positive sign of financial stability and reduced risk. The decreasing trend in the financial leverage ratio suggests that Hershey Co has been effectively managing its debt levels and strengthening its financial position over time.
Peer comparison
Dec 31, 2024
Company name
Symbol
Financial leverage ratio
Hershey Co
HSY
2.75
John B Sanfilippo & Son Inc
JBSS
1.60
Tootsie Roll Industries Inc
TR
1.32