Hershey Co (HSY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 | 8,140,400 |
| Total stockholders’ equity | US$ in thousands | 4,099,090 | 3,299,540 | 2,757,230 | 2,234,350 | 1,739,220 |
| Financial leverage ratio | 2.90 | 3.32 | 3.78 | 4.09 | 4.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,902,900K ÷ $4,099,090K
= 2.90
The financial leverage ratio of Hershey Company has shown a declining trend over the past five years, from 4.68 in 2019 to 2.90 in 2023. This signifies a decrease in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk as the company has been using less debt compared to its equity for funding its activities. Hershey Company has been actively managing its leverage, potentially reducing the financial risks associated with high levels of debt. It is important to monitor this trend to ensure the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023