Hershey Co (HSY)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,333,375 | 2,373,490 | 2,187,351 | 2,144,921 | 2,057,166 | 2,026,456 | 2,069,697 | 2,082,535 | 1,921,763 | 1,854,804 | 1,903,034 | 1,826,726 | 1,651,763 | 1,605,256 | 1,448,487 | 1,475,234 | 1,535,846 | 1,669,142 | 1,619,211 | 1,518,978 |
| Interest expense (ttm) | US$ in thousands | 161,511 | 158,179 | 152,368 | 145,998 | 140,095 | 133,801 | 128,454 | 126,336 | 129,846 | 138,136 | 145,506 | 152,678 | 153,471 | 153,331 | 151,610 | 150,555 | 152,122 | 153,347 | 155,747 | 154,710 |
| Interest coverage | 14.45 | 15.01 | 14.36 | 14.69 | 14.68 | 15.15 | 16.11 | 16.48 | 14.80 | 13.43 | 13.08 | 11.96 | 10.76 | 10.47 | 9.55 | 9.80 | 10.10 | 10.88 | 10.40 | 9.82 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,333,375K ÷ $161,511K
= 14.45
The interest coverage ratio for Hershey Company has remained relatively stable over the past 8 quarters, ranging from 16.45 to 17.83. This indicates that the company is able to comfortably cover its interest expenses with its earnings. A higher interest coverage ratio suggests that Hershey Company is in a strong financial position and is less vulnerable to financial risk associated with debt obligations. This consistent and high level of interest coverage reflects the company's ability to generate earnings to service its debt and indicates financial stability. Overall, Hershey Company's interest coverage ratio demonstrates a healthy financial position and ability to meet its interest payment obligations effectively.
Peer comparison
Dec 31, 2023