Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Hershey Co., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Hershey Co. net fixed asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Hershey Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Hershey Co. total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Hershey Co. equity turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover
Hershey Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Property, plant and equipment, net | 2,769,702) | 2,586,187) | 2,285,255) | 2,153,139) | 2,130,294) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.76 | 3.47 | 3.57 | 3.71 | 3.66 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Altria Group Inc. | 15.61 | 16.75 | 13.00 | 12.56 | — | |
| Coca-Cola Co. | 4.37 | 3.90 | 3.06 | 3.44 | — | |
| Mondelēz International Inc. | 3.49 | 3.32 | 2.94 | 2.96 | — | |
| PepsiCo Inc. | 3.56 | 3.55 | 3.29 | 3.48 | — | |
| Philip Morris International Inc. | 4.73 | 5.09 | 4.51 | 4.49 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 4.23 | 4.19 | 3.73 | 3.90 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | 5.28 | 5.14 | 4.45 | 4.35 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 10,419,294 ÷ 2,769,702 = 3.76
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Hershey Co. net fixed asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Hershey Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Property, plant and equipment, net | 2,769,702) | 2,586,187) | 2,285,255) | 2,153,139) | 2,130,294) | |
| Operating lease ROU assets | 326,472) | 351,712) | 224,268) | 220,678) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 3,096,174) | 2,937,899) | 2,509,523) | 2,373,817) | 2,130,294) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.37 | 3.05 | 3.25 | 3.36 | 3.66 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Coca-Cola Co. | 3.82 | 3.41 | 2.68 | 3.05 | — | |
| Mondelēz International Inc. | 3.25 | 3.10 | 2.75 | 2.78 | — | |
| PepsiCo Inc. | 3.24 | 3.25 | 3.05 | 3.22 | — | |
| Philip Morris International Inc. | 4.35 | 4.69 | 4.06 | 4.03 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Food, Beverage & Tobacco | 3.85 | 3.83 | 3.42 | 3.58 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | 4.76 | 4.63 | 3.96 | 4.23 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 10,419,294 ÷ 3,096,174 = 3.37
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Hershey Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Total Asset Turnover
Hershey Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Total assets | 10,948,820) | 10,412,231) | 9,131,845) | 8,140,395) | 7,703,020) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.95 | 0.86 | 0.89 | 0.98 | 1.01 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Altria Group Inc. | 0.68 | 0.66 | 0.55 | 0.51 | — | |
| Coca-Cola Co. | 0.46 | 0.41 | 0.38 | 0.43 | — | |
| Mondelēz International Inc. | 0.44 | 0.43 | 0.39 | 0.40 | — | |
| PepsiCo Inc. | 0.94 | 0.86 | 0.76 | 0.86 | — | |
| Philip Morris International Inc. | 0.51 | 0.76 | 0.64 | 0.70 | — | |
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 0.61 | 0.61 | 0.54 | 0.58 | — | |
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | 1.43 | 1.37 | 1.28 | 1.33 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Total asset turnover = Net sales ÷ Total assets
= 10,419,294 ÷ 10,948,820 = 0.95
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Hershey Co. total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Equity Turnover
Hershey Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Total The Hershey Company stockholders’ equity | 3,299,544) | 2,757,229) | 2,234,352) | 1,739,222) | 1,398,721) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.16 | 3.25 | 3.65 | 4.59 | 5.57 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | 9.21 | 4.04 | — | |
| Coca-Cola Co. | 1.78 | 1.68 | 1.71 | 1.96 | — | |
| Mondelēz International Inc. | 1.17 | 1.02 | 0.96 | 0.95 | — | |
| PepsiCo Inc. | 5.04 | 4.95 | 5.23 | 4.54 | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.94 | 3.67 | 3.65 | 3.33 | — | |
| Equity Turnover, Industry | ||||||
| Consumer Staples | 5.46 | 5.21 | 5.03 | 4.89 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Equity turnover = Net sales ÷ Total The Hershey Company stockholders’ equity
= 10,419,294 ÷ 3,299,544 = 3.16
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Hershey Co. equity turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |