Hershey Co (HSY)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,946,900 | 12,621,400 | 12,415,700 | 12,389,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,714,650 | 4,204,970 | 4,009,870 | 4,108,290 | 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 | 2,237,880 | 2,065,850 | 1,753,600 | 1,671,230 |
| Financial leverage ratio | 2.75 | 3.00 | 3.10 | 3.02 | 2.90 | 3.01 | 3.12 | 3.21 | 3.32 | 3.51 | 3.66 | 3.65 | 3.78 | 3.73 | 3.92 | 4.01 | 4.08 | 4.48 | 5.08 | 5.30 |
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 shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. This ratio decreased from 5.30 on March 31, 2020, to 2.75 on December 31, 2024. A declining financial leverage ratio indicates that the company is relying less on debt to finance its operations and investments, which can lead to lower financial risk and greater stability in the long term. The decreasing trend suggests that Hershey Co has been gradually reducing its debt levels relative to its equity, which may be seen as a positive sign by investors and creditors. It is important for the company to carefully balance its use of debt to support growth while maintaining a healthy level of leverage to support its business activities effectively.
Peer comparison
Dec 31, 2024