Hershey Co (HSY)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,333,380 | 2,057,170 | 1,921,760 | 1,651,760 | 1,535,850 |
| Interest expense | US$ in thousands | 161,511 | 140,095 | 129,846 | 153,471 | 152,122 |
| Interest coverage | 14.45 | 14.68 | 14.80 | 10.76 | 10.10 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,333,380K ÷ $161,511K
= 14.45
Based on the data provided, Hershey Company's interest coverage ratio has been consistently strong over the last five years. The company's ability to cover its interest expenses has improved steadily, with the ratio increasing from 11.91 in 2019 to 16.87 in 2023. This indicates that Hershey Company's operating income is more than sufficient to cover its interest obligations, demonstrating a healthy financial position and a lower risk of default on its debt payments. The trend of increasing interest coverage ratios over the years reflects positively on the company's ability to manage its debt and indicates a strong financial performance.
Peer comparison
Dec 31, 2023