Debt to Equity
since 2005
Calculation
Hershey Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | The Hershey Company stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.45 | = | 4,791,345) | ÷ | 3,299,544) |
| Dec 31, 2021 | 1.82 | = | 5,028,894) | ÷ | 2,757,229) |
| Dec 31, 2020 | 2.06 | = | 4,602,625) | ÷ | 2,234,352) |
| Dec 31, 2019 | 2.45 | = | 4,266,485) | ÷ | 1,739,222) |
| Dec 31, 2018 | 3.19 | = | 4,457,596) | ÷ | 1,398,721) |
| Dec 31, 2017 | 3.19 | = | 2,920,480) | ÷ | 915,338) |
| Dec 31, 2016 | 3.79 | = | 2,980,169) | ÷ | 785,856) |
| Dec 31, 2015 | 2.43 | = | 2,420,527) | ÷ | 997,997) |
| Dec 31, 2014 | 1.50 | = | 2,184,464) | ÷ | 1,455,062) |
| Dec 31, 2013 | 1.22 | = | 1,962,017) | ÷ | 1,604,834) |
| Dec 31, 2012 | 1.84 | = | 1,906,865) | ÷ | 1,036,749) |
| Dec 31, 2011 | 2.22 | = | 1,888,173) | ÷ | 849,022) |
| Dec 31, 2010 | 2.03 | = | 1,827,305) | ÷ | 902,316) |
| Dec 31, 2009 | 2.14 | = | 1,542,043) | ÷ | 720,459) |
| Dec 31, 2008 | 6.31 | = | 2,007,458) | ÷ | 318,199) |
| Dec 31, 2007 | 3.60 | = | 2,136,357) | ÷ | 592,922) |
| Dec 31, 2006 | 3.06 | = | 2,092,126) | ÷ | 683,423) |
| Dec 31, 2005 | 1.73 | = | 1,761,870) | ÷ | 1,021,076) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2022 is characterized by significant fluctuations in leverage and a long-term increase in both total debt and stockholders' equity. While total debt grew substantially over the seventeen-year period, the debt-to-equity ratio experienced several cycles of expansion and contraction, ending the period at a level comparable to the starting point.
- Total Debt Trends
- Total debt exhibited a general upward trajectory, rising from 1.76 billion USD in 2005 to 4.79 billion USD in 2022. A period of relative stability occurred between 2005 and 2014, with debt hovering between 1.5 billion and 2.2 billion USD. A notable acceleration in borrowing began after 2016, with a significant jump to 4.46 billion USD in 2018. Debt peaked in 2021 at 5.03 billion USD before slightly declining in 2022.
- Stockholders' Equity Evolution
- Equity levels showed higher volatility than debt. A sharp decline was observed between 2005 and 2008, where equity dropped from 1.02 billion USD to a period low of 318 million USD. Following this trough, equity recovered and grew steadily, particularly after 2017. From 2017 to 2022, stockholders' equity increased more than threefold, rising from 915 million USD to 3.30 billion USD, which served as a primary driver for the stabilization of the leverage ratio in later years.
- Debt-to-Equity Ratio Analysis
- The debt-to-equity ratio underwent three distinct phases. The first phase, spanning 2005 to 2008, saw a rapid escalation in leverage, peaking at a ratio of 6.31 due to the simultaneous contraction of equity. The second phase, from 2009 to 2013, was marked by a deleveraging trend, with the ratio falling to a low of 1.22. The third phase involved a secondary spike in leverage, reaching 3.79 in 2016, followed by a consistent downward trend from 2017 to 2022. By the end of 2022, the ratio had decreased to 1.45, indicating a strengthened equity position relative to total debt.
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Comparison to Competitors
Hershey Co., debt to equity, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.45 | 1.62 | 0.85 | 2.28 | — |
| Dec 31, 2021 | 1.82 | 1.86 | 0.69 | 2.51 | — |
| Dec 31, 2020 | 2.06 | 2.22 | 0.73 | 3.28 | — |
| Dec 31, 2019 | 2.45 | 2.25 | 0.68 | 2.17 | — |
| Dec 31, 2018 | 3.19 | 2.56 | 0.72 | 2.23 | — |
| Dec 31, 2017 | 3.19 | 2.79 | 0.68 | 3.61 | — |
| Dec 31, 2016 | 3.79 | 1.98 | 0.68 | 3.33 | — |
| Dec 31, 2015 | 2.43 | 1.73 | 0.55 | 2.79 | — |
| Dec 31, 2014 | 1.50 | 1.38 | 0.60 | 1.66 | — |
| Dec 31, 2013 | 1.22 | 1.12 | 0.53 | 1.22 | — |
| Dec 31, 2012 | 1.84 | 0.99 | 0.60 | 1.27 | — |
| Dec 31, 2011 | 2.22 | 0.90 | 0.76 | 1.30 | 80.98 |
| Dec 31, 2010 | 2.03 | 0.76 | 0.80 | 1.18 | 4.71 |
| Dec 31, 2009 | 2.14 | 0.48 | 0.73 | 0.47 | 2.70 |
| Dec 31, 2008 | 6.31 | 0.45 | 0.91 | 0.68 | 1.59 |
| Dec 31, 2007 | 3.60 | 0.43 | 0.77 | 0.24 | — |
| Dec 31, 2006 | 3.06 | 0.27 | 0.36 | 0.18 | — |
| Dec 31, 2005 | 1.73 | 0.35 | 0.36 | 0.37 | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Hershey Co., debt to equity, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 1.45 | 2.44 |
| Dec 31, 2021 | 1.82 | 2.28 |
| Dec 31, 2020 | 2.06 | 2.90 |
| Dec 31, 2019 | 2.45 | 2.51 |
| Dec 31, 2018 | 3.19 | 2.82 |
| Dec 31, 2017 | 3.19 | 3.31 |
| Dec 31, 2016 | 3.79 | 2.76 |
| Dec 31, 2015 | 2.43 | 2.32 |
| Dec 31, 2014 | 1.50 | 1.86 |
| Dec 31, 2013 | 1.22 | 1.36 |
| Dec 31, 2012 | 1.84 | 1.23 |
| Dec 31, 2011 | 2.22 | 1.15 |
| Dec 31, 2010 | 2.03 | 1.02 |
| Dec 31, 2009 | 2.14 | 0.74 |
| Dec 31, 2008 | 6.31 | 0.80 |
| Dec 31, 2007 | 3.60 | 0.52 |
| Dec 31, 2006 | 3.06 | 0.29 |
| Dec 31, 2005 | 1.73 | 0.36 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Hershey Co., debt to equity, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 1.45 | 1.07 |
| Dec 31, 2021 | 1.82 | 1.07 |
| Dec 31, 2020 | 2.06 | 1.24 |
| Dec 31, 2019 | 2.45 | 1.18 |
| Dec 31, 2018 | 3.19 | 1.11 |
| Dec 31, 2017 | 3.19 | 1.20 |
| Dec 31, 2016 | 3.79 | 1.09 |
| Dec 31, 2015 | 2.43 | 1.00 |
| Dec 31, 2014 | 1.50 | 0.96 |
| Dec 31, 2013 | 1.22 | 0.87 |
| Dec 31, 2012 | 1.84 | 0.83 |
| Dec 31, 2011 | 2.22 | 0.80 |
| Dec 31, 2010 | 2.03 | 0.74 |
| Dec 31, 2009 | 2.14 | 0.69 |
| Dec 31, 2008 | 6.31 | 0.68 |
| Dec 31, 2007 | 3.60 | 0.55 |
| Dec 31, 2006 | 3.06 | 0.52 |
| Dec 31, 2005 | 1.73 | 0.59 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).