Hershey Co (HSY)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,648,250 | 2,333,380 | 2,046,330 | 1,916,100 | 1,638,880 |
| Interest expense | US$ in thousands | 165,655 | 161,511 | 137,557 | 127,417 | 149,374 |
| Interest coverage | 15.99 | 14.45 | 14.88 | 15.04 | 10.97 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,648,250K ÷ $165,655K
= 15.99
The interest coverage ratio for Hershey Co has shown a consistent and healthy trend over the years from 2020 to 2024. The ratio has improved steadily from 10.97 in December 2020 to 15.99 in December 2024. This indicates that the company's operating income is more than sufficient to cover its interest expenses, reflecting a strong ability to meet its financial obligations related to debt servicing. The increasing trend in the interest coverage ratio signifies a lower financial risk for the company, as it has a comfortable buffer to manage its interest payments and indicates a stable financial position.
Peer comparison
Dec 31, 2024