Common-Size Income Statement
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- Income Statement
- Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
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Hershey Co., common-size consolidated income statement
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).
- Gross Profit and Cost of Sales
- Gross profit as a percentage of net sales showed a declining trend from 45.89% in 2018 to 43.18% in 2022. This decline is primarily due to an increase in the cost of sales, which rose from -54.11% to -56.82% over the same period. The rising cost of sales indicates increasing production or procurement costs relative to sales, negatively impacting profitability at the gross margin level.
- Operating Expenses
- Selling, marketing, and administrative expenses consistently decreased as a percentage of net sales from -24.06% in 2018 to -21.46% in 2022. This suggests improved operational efficiency or cost control in these areas. Long-lived asset impairment charges showed variability, peaking in 2019 at -1.41% but becoming insignificant in recent years. Business realignment costs were minimal across all years and trended downward. These patterns reflect efforts to streamline operations and reduce one-time charges.
- Operating Profit
- Operating profit as a percentage of net sales experienced some fluctuation but generally remained strong, increasing from 20.84% in 2018 to a peak of 22.78% in 2021 before slightly declining to 21.7% in 2022. This stability in operating profit despite a shrinking gross margin indicates effective management of both operating expenses and impairments.
- Interest Expense and Income
- Interest expense showed a gradual reduction from -1.88% to -1.34% of net sales, with net interest expense following a similar trend. Interest income decreased from 0.1% to 0.02% over the period. The net effect is a declining net interest expense burden, potentially due to reduced debt levels or lower interest rates.
- Special Charges and Benefits
- The write-down of equity investments related to historic and renewable energy tax credits fluctuated and increased in 2022 to -1.81%, indicating heightened impacts from these investments on profitability. Pension and post-retirement benefit costs showed a decreasing trend with some variability but remained a relatively small impact overall. Other income (expense), net, varied slightly but remained near zero, indicating minor effects on overall profitability.
- Income Before Taxes and Net Income
- Income before income taxes reflected fluctuations consistent with operating profit trends, rising from 18.1% in 2018 to a peak of 20.03% in 2021, then declining to 18.4% in 2022. The provision for income taxes as a percentage of net sales showed some variability but generally declined from -3.07% in 2018 to -2.61% in 2022. Net income attributable to the company followed a similar pattern to operating profit and income before taxes, increasing from 15.11% in 2018 to a high of 16.47% in 2021 and then decreasing to 15.79% in 2022, indicating overall profitability remained relatively stable with minor year-to-year variations.