Return on Assets (ROA)
since 2005
Calculation
Hershey Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to The Hershey Company1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 15.02% | = | 100 | × | 1,644,817) | ÷ | 10,948,820) |
| Dec 31, 2021 | 14.19% | = | 100 | × | 1,477,512) | ÷ | 10,412,231) |
| Dec 31, 2020 | 14.00% | = | 100 | × | 1,278,708) | ÷ | 9,131,845) |
| Dec 31, 2019 | 14.12% | = | 100 | × | 1,149,692) | ÷ | 8,140,395) |
| Dec 31, 2018 | 15.29% | = | 100 | × | 1,177,562) | ÷ | 7,703,020) |
| Dec 31, 2017 | 14.10% | = | 100 | × | 782,981) | ÷ | 5,553,726) |
| Dec 31, 2016 | 13.03% | = | 100 | × | 720,044) | ÷ | 5,524,333) |
| Dec 31, 2015 | 9.60% | = | 100 | × | 512,951) | ÷ | 5,344,371) |
| Dec 31, 2014 | 15.04% | = | 100 | × | 846,912) | ÷ | 5,629,516) |
| Dec 31, 2013 | 15.31% | = | 100 | × | 820,470) | ÷ | 5,357,488) |
| Dec 31, 2012 | 13.90% | = | 100 | × | 660,931) | ÷ | 4,754,839) |
| Dec 31, 2011 | 14.26% | = | 100 | × | 628,962) | ÷ | 4,412,199) |
| Dec 31, 2010 | 11.93% | = | 100 | × | 509,799) | ÷ | 4,272,732) |
| Dec 31, 2009 | 11.86% | = | 100 | × | 435,994) | ÷ | 3,675,031) |
| Dec 31, 2008 | 8.57% | = | 100 | × | 311,405) | ÷ | 3,634,719) |
| Dec 31, 2007 | 5.04% | = | 100 | × | 214,154) | ÷ | 4,247,113) |
| Dec 31, 2006 | 13.45% | = | 100 | × | 559,061) | ÷ | 4,157,565) |
| Dec 31, 2005 | 11.48% | = | 100 | × | 493,244) | ÷ | 4,295,236) |
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 performance from 2005 to 2022 reveals a general upward trajectory in both net income and total assets, with the Return on Assets (ROA) demonstrating long-term stability despite periodic volatility.
- Return on Assets (ROA) Trends
- The ROA experienced significant fluctuation during the first decade of the analyzed period, hitting a low of 5.04% in 2007. A recovery followed, leading to a peak of 15.31% in 2013. After a temporary decline to 9.60% in 2015, the ratio entered a period of sustained stability, fluctuating within a narrow band between 13.03% and 15.02% from 2016 through 2022.
- Net Income and Asset Expansion
- Net income attributable to the company showed a strong overall increase, rising from 493.2 million USD in 2005 to 1.64 billion USD in 2022. This growth mirrored a substantial increase in total assets, which grew from 4.3 billion USD in 2005 to 10.9 billion USD in 2022. A period of accelerated asset growth is observed between 2017 and 2022, during which the asset base nearly doubled.
- Asset Utilization Efficiency
- The maintenance of a consistent ROA between 14% and 15% during the final seven years of the period indicates high operational efficiency. The company successfully scaled its net income in proportion to its rapid asset expansion, suggesting that the increase in the resource base was effectively leveraged to generate additional profit without compromising overall asset productivity.
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Comparison to Competitors
Hershey Co., ROA, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 15.02% | 10.29% | 3.82% | 9.67% | 14.67% |
| Dec 31, 2021 | 14.19% | 10.36% | 6.41% | 8.25% | 22.06% |
| Dec 31, 2020 | 14.00% | 8.87% | 5.24% | 7.66% | 17.98% |
| Dec 31, 2019 | 14.12% | 10.33% | 6.00% | 9.31% | 16.76% |
| Dec 31, 2018 | 15.29% | 7.73% | 5.39% | 16.12% | 19.88% |
| Dec 31, 2017 | 14.10% | 1.42% | 4.63% | 6.09% | 14.05% |
| Dec 31, 2016 | 13.03% | 7.48% | 2.70% | 8.54% | 18.91% |
| Dec 31, 2015 | 9.60% | 8.16% | 11.56% | 7.83% | 20.24% |
| Dec 31, 2014 | 15.04% | 7.71% | 3.27% | 9.24% | 21.29% |
| Dec 31, 2013 | 15.31% | 9.53% | 5.40% | 8.70% | 22.47% |
| Dec 31, 2012 | 13.90% | 10.47% | 4.01% | 8.28% | 23.36% |
| Dec 31, 2011 | 14.26% | 10.72% | 3.76% | 8.84% | 24.21% |
| Dec 31, 2010 | 11.93% | 16.19% | 4.32% | 9.27% | 20.71% |
| Dec 31, 2009 | 11.86% | 14.02% | 4.53% | 14.92% | 18.35% |
| Dec 31, 2008 | 8.57% | 14.33% | 4.60% | 14.29% | 20.90% |
| Dec 31, 2007 | 5.04% | 13.82% | 3.81% | 16.34% | — |
| Dec 31, 2006 | 13.45% | 16.95% | 5.51% | 18.85% | — |
| Dec 31, 2005 | 11.48% | 16.56% | 4.57% | 12.85% | — |
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., ROA, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 15.02% | 9.51% |
| Dec 31, 2021 | 14.19% | 10.44% |
| Dec 31, 2020 | 14.00% | 9.04% |
| Dec 31, 2019 | 14.12% | 10.02% |
| Dec 31, 2018 | 15.29% | 11.48% |
| Dec 31, 2017 | 14.10% | 5.50% |
| Dec 31, 2016 | 13.03% | 8.27% |
| Dec 31, 2015 | 9.60% | 10.50% |
| Dec 31, 2014 | 15.04% | 8.80% |
| Dec 31, 2013 | 15.31% | 10.00% |
| Dec 31, 2012 | 13.90% | 9.86% |
| Dec 31, 2011 | 14.26% | 9.62% |
| Dec 31, 2010 | 11.93% | 10.87% |
| Dec 31, 2009 | 11.86% | 11.66% |
| Dec 31, 2008 | 8.57% | 12.02% |
| Dec 31, 2007 | 5.04% | 9.75% |
| Dec 31, 2006 | 13.45% | 11.94% |
| Dec 31, 2005 | 11.48% | 9.75% |
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., ROA, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 15.02% | 8.95% |
| Dec 31, 2021 | 14.19% | 8.75% |
| Dec 31, 2020 | 14.00% | 8.24% |
| Dec 31, 2019 | 14.12% | 6.41% |
| Dec 31, 2018 | 15.29% | 8.40% |
| Dec 31, 2017 | 14.10% | 7.42% |
| Dec 31, 2016 | 13.03% | 7.94% |
| Dec 31, 2015 | 9.60% | 7.69% |
| Dec 31, 2014 | 15.04% | 7.96% |
| Dec 31, 2013 | 15.31% | 8.75% |
| Dec 31, 2012 | 13.90% | 8.63% |
| Dec 31, 2011 | 14.26% | 8.89% |
| Dec 31, 2010 | 11.93% | 9.45% |
| Dec 31, 2009 | 11.86% | 9.43% |
| Dec 31, 2008 | 8.57% | 9.11% |
| Dec 31, 2007 | 5.04% | 8.07% |
| Dec 31, 2006 | 13.45% | 8.42% |
| Dec 31, 2005 | 11.48% | 9.55% |
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).