Hershey Co (HSY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Hershey Co has consistently shown a strong solvency position based on the solvency ratios analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from March 2020 to December 2024, indicating that the company does not rely heavily on debt to finance its operations and has a solid asset, capital, and equity base to support its activities.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 5.30 in March 2020 to 2.75 in December 2024. This signals a reduction in the company's reliance on debt financing relative to its equity, reflecting improved financial risk management and a stronger financial position.
Overall, the consistent low debt levels and decreasing financial leverage ratio demonstrate Hershey Co's sound financial health and ability to meet its financial obligations without being overly burdened by debt.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.85 | 14.36 | 15.80 | 18.03 | 16.68 | 16.46 | 15.64 | 15.31 | 15.25 | 16.50 | 17.39 | 17.68 | 15.91 | 14.73 | 14.17 | 12.97 | 11.86 | 11.57 | 10.75 | 11.09 |
The interest coverage ratio of Hershey Co has shown a generally positive trend over the analyzed period, indicating the company's ability to meet its interest payment obligations comfortably. The ratio has consistently improved from 11.09 as of March 31, 2020, to a peak of 18.03 as of March 31, 2024. This suggests that the company's operating income has been more than sufficient to cover its interest expenses during these periods.
There are, however, some fluctuations in the ratio observed throughout the timeframe. For example, there was a slight decrease in the ratio from June 30, 2022, to September 30, 2022, followed by a subsequent increase in the following quarters. Such fluctuations could be influenced by various factors, such as changes in interest rates or the company's operating performance.
Overall, the consistent improvement in Hershey Co's interest coverage ratio signifies a strengthening financial position and a reduced risk of defaulting on its debt obligations due to insufficient earnings. This trend is generally favorable for investors and creditors as it indicates the company's ability to service its debt efficiently.