Hershey company financial analysis. Financial Analysis of Hershey Corporation 2022-10-13

Hershey company financial analysis Rating: 9,9/10 367 reviews

The Hershey Company is a leading global confectionery company that was founded in 1894 by Milton S. Hershey in Pennsylvania, United States. It is known for its iconic chocolate brands such as Hershey's, Reese's, and Kit Kat, as well as its non-chocolate brands such as Jolly Rancher and Ice Breakers. In this essay, we will conduct a financial analysis of the Hershey Company to understand its financial health and performance.

First, let's start by looking at the company's revenue and profitability. According to its 2020 annual report, the Hershey Company generated $7.45 billion in revenue, which represents a 4.5% increase compared to the previous year. The company's net income for 2020 was $738.2 million, which represents a 6.8% increase compared to the previous year. The company's gross profit margin, which is the percentage of revenue that remains after deducting the cost of goods sold, was 54.5% in 2020. This indicates that the company is able to generate a significant amount of profit from its sales.

Next, let's look at the company's liquidity, which is a measure of its ability to pay its short-term debts and obligations. The Hershey Company has a current ratio of 1.34, which is considered strong. This means that the company has enough current assets, such as cash and marketable securities, to cover its current liabilities, such as accounts payable and short-term debt. The company also has a quick ratio of 0.93, which is considered good. This ratio measures the company's ability to meet its short-term obligations using only its most liquid assets.

Another important financial indicator to consider is the company's debt level. The Hershey Company has a debt-to-equity ratio of 1.07, which is considered moderate. This means that the company has a moderate amount of debt relative to its equity. It is important to note that high levels of debt can increase a company's risk, as it can be more difficult to make debt payments in times of financial strain. However, it is also important to consider that some level of debt can be necessary for a company to finance its operations and growth.

Finally, let's look at the company's stock performance. The Hershey Company's stock price has increased by approximately 40% over the past year, which is a strong performance. The company's dividend yield, which is the annual dividend per share divided by the stock price, is currently 2.2%. This means that the company is returning a portion of its profits to its shareholders in the form of dividends.

In conclusion, the financial analysis of the Hershey Company shows that it is a financially healthy and successful company. It has a strong revenue and profitability, good liquidity, a moderate level of debt, and a strong stock performance. These factors combined indicate that the Hershey Company is well-positioned to continue its growth and success in the future.

Hershey financials 2022

hershey company financial analysis

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THE HERSHEY COMPANY : Fundamental Analysis and Financial Ratings

hershey company financial analysis

. . Managers of Milka found a sufficient amount of products to satisfy a wide range of potential customers. . Current ratio is found by dividing the current assets by current liabilities. .

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Financial Analysis of Hershey Corporation

hershey company financial analysis

The Beta measures systematic risk based on how returns on Hershey correlated with the market. When combined the international operations share most of the aggregation criteria and represent less than 10% of consolidated revenues, operating profits and assets. The composition of current assets is a key factor in the evaluation of this ratio. I believe that Hershey Company is financially more dependable than Entergy Coporation. Calculations and summary conclusions are made in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. .

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The Hershey Company (HSY): annual reports and key ratios comparison

hershey company financial analysis

In general, a lower number is preferred because it indicates a company has a satisfactory level of working capital. . . The Hershey Company divided its operations in two sectors based off geographic location, North America and International. . The third section is about investing activities, which shows what Hershey has done with the money that it received from the sale of assets or what it spent to acquire new ones. A higher number is preferred because it indicates a strong ability to service short-term obligations.

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Financial Analysis of The Hershey Company

hershey company financial analysis

. . Naturally, companies and creditors prefer a lower number. . Overall, Hershey would make a better potential investment than Alliance because of its stronger financial condition. This ratio does not take into account the depreciation methods employed by each company and should not be the only measure of effectiveness of a company in this area.

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The Hershey Company financial statements: Balance sheet and Income statement

hershey company financial analysis

. . . Type II rehearsal is. At the same time, however, the current ratio should not greatly exceed benchmarks of other competitors Parrino et al. This ratio relates the ability of a company to generate sales using its working capital to determine how efficiently working capital is being used. To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2.

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Financial Analysis of The Hershey Company, Sample of Business plans

hershey company financial analysis

The higher the number the more total capital has been contributed by owners and the less by creditors. You can analyze the Hershey Co is rated below average in revenue category among related companies. As for marketing and promotions, Mondelez has been able to successfully compete against low-priced and store brand products, and it is committed to providing resources to expand promotions in key markets. . . .

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HSY

hershey company financial analysis

. In addition to being the largest North American manufacturer of quality chocolate and sugar confectionery products The Hershey Company has also begun to develop and deliver single-serve cookies, brownies and value-added snack nuts. These increases look promising in context with the recent depression that the United States has faced. Introduction Financial management is considered as part of the total management. Unlike profitability final net profitability , the EBITDA margin does not include taxes, interest and depreciation. The financial position of The Hershey Company is better than that of most listed companies that submit financial statements to the U. .

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THE HERSHEY COMPANY : Financial Data Forecasts Estimates and Expectations

hershey company financial analysis

If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed. . It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity. Whatever the case, the imprecision that can be found in Hershey's accounting process means that the reasonable investor should take a skeptical approach toward the Hershey Company SummaryHershey competes with You should never invest in Hershey without having analyzed its financial statements. .


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Hershey Financial Analysis

hershey company financial analysis

The comparison is based on official financial statements filed with the U. . . Indeed, the firm is getting paid 29. The two ratios used to help determine liquidity are Current Ratio and Quick Ratio.

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