Stock Analysis on Net
Stock Analysis on Net

Hershey Co. (NYSE:HSY)

This company has been moved to the archive! The financial data has not been updated since July 27, 2023.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Hershey Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Accounts payable 8.86 6.65 6.35 6.77 6.52
Payroll, compensation and benefits 2.68 2.80 2.60 2.83 2.34
Advertising, promotion and product allowances 3.08 2.93 3.39 3.43 3.81
Current operating lease liabilities 0.29 0.35 0.40 0.36 0.00
Other 1.55 2.14 2.17 2.00 2.66
Accrued liabilities 7.60% 8.22% 8.56% 8.63% 8.82%
Accrued income taxes 0.06 0.03 0.19 0.24 0.44
Short-term debt 6.34 9.02 0.81 0.40 15.55
Current portion of long-term debt 6.88 0.03 4.81 8.64 0.07
Current liabilities 29.75% 23.95% 20.72% 24.68% 31.40%
Long-term portion of long-term debt 30.54 39.25 44.79 43.37 42.25
Post-retirement benefits liabilities 1.34 1.86 2.45 2.59 2.53
Pension benefits liabilities 0.25 0.36 0.77 0.72 0.86
Non-current operating lease liabilities 2.69 2.99 1.99 2.26 0.00
Other 2.28 2.36 2.27 2.48 2.40
Other long-term liabilities 6.57% 7.56% 7.48% 8.06% 5.79%
Deferred income taxes 3.00 2.77 2.51 2.46 2.30
Long-term liabilities 40.12% 49.57% 54.78% 53.89% 50.33%
Total liabilities 69.86% 73.52% 75.49% 78.56% 81.73%
Preferred stock, shares issued: none 0.00 0.00 0.00 0.00 0.00
Common stock 1.49 1.55 1.76 1.98 3.89
Class B common stock 0.53 0.58 0.66 0.74 0.79
Additional paid-in capital 11.84 12.10 13.04 14.03 12.75
Retained earnings 32.79 26.12 21.12 15.85 91.29
Treasury, common stock shares, at cost -14.21 -11.48 -8.42 -7.26 -85.92
Accumulated other comprehensive loss -2.30 -2.39 -3.70 -3.98 -4.63
Total The Hershey Company stockholders’ equity 30.14% 26.48% 24.47% 21.37% 18.16%
Noncontrolling interest in subsidiary 0.00 0.00 0.04 0.07 0.11
Total stockholders’ equity 30.14% 26.48% 24.51% 21.44% 18.27%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

A consistent reduction in total liabilities is observed over the five-year period, with the proportion decreasing from 81.73% in 2018 to 69.86% by 2022. This downward trend is primarily driven by a significant reduction in long-term debt obligations, signaling a shift toward a more conservative capital structure and reduced financial leverage.

Long-Term Liability Trends
Long-term liabilities declined from 50.33% to 40.12% of the total balance sheet. The most prominent driver of this change is the long-term portion of long-term debt, which fell from 42.25% in 2018 to 30.54% in 2022. Other long-term liabilities and pension-related obligations also showed a general downward trajectory, contributing to the overall deleveraging of the balance sheet.
Current Liability Dynamics
Current liabilities exhibited volatility, starting at 31.40% in 2018, dipping to 20.72% in 2020, and recovering to 29.75% by 2022. Short-term debt levels fluctuated significantly, showing no linear trend but indicating active short-term liquidity management. Accounts payable increased notably in the final year, rising to 8.86% from a range of 6.35% to 6.77% in previous years, suggesting an increase in credit utilization from suppliers.
Stockholders' Equity Expansion
Total stockholders' equity demonstrated a steady upward trend, increasing from 18.27% in 2018 to 30.14% in 2022. This growth is strongly supported by retained earnings, which rose from 15.85% in 2019 to 32.79% in 2022. The substantial increase in the proportion of retained earnings suggests strong internal capital generation and a reduction in the relative impact of treasury stock, which decreased from -85.92% in 2018 to -14.21% in 2022.
Capital Composition Shift
The overall capital composition has transitioned from a liability-heavy structure to one with a higher equity base. While liabilities constituted over 80% of the balance sheet in 2018, they fell below 70% by 2022. This transition suggests an improvement in long-term solvency and a reduced reliance on external borrowing to fund assets.

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