Hershey Co (HSY)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 8,140,400 | 8,464,260 | 7,793,560 | 7,857,380 |
| 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 |
| Financial leverage ratio | 2.90 | 3.01 | 3.12 | 3.21 | 3.32 | 3.51 | 3.66 | 3.65 | 3.78 | 3.73 | 3.92 | 4.01 | 4.09 | 4.48 | 5.08 | 5.30 | 4.68 | 4.83 | 4.65 | 5.55 |
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 been fluctuating over the past eight quarters. The ratio ranges from 2.90 to 3.65 during this period.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. In Hershey Company's case, the increasing trend in the financial leverage ratio from 2022 to 2023 suggests a rising reliance on debt to fund its operations and investments.
The recent peak of 3.65 in Q2 2022 indicates that Hershey had significantly higher levels of debt relative to equity during that period. Subsequently, the ratio has shown a decreasing trend until Q4 2023, where it stood at 2.90. The decrease in the financial leverage ratio could signify a shift towards a more conservative capital structure or successful deleveraging efforts by Hershey Company.
It is essential for investors and stakeholders to closely monitor Hershey Company's financial leverage ratio, as a high ratio could imply higher financial risk and potential challenges in meeting debt obligations. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of Hershey Company's overall financial health and stability.
Peer comparison
Dec 31, 2023