Return on Equity (ROE)
since 2005
Calculation
Hershey Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to The Hershey Company1 | ÷ | The Hershey Company stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 49.85% | = | 100 | × | 1,644,817) | ÷ | 3,299,544) |
| Dec 31, 2021 | 53.59% | = | 100 | × | 1,477,512) | ÷ | 2,757,229) |
| Dec 31, 2020 | 57.23% | = | 100 | × | 1,278,708) | ÷ | 2,234,352) |
| Dec 31, 2019 | 66.10% | = | 100 | × | 1,149,692) | ÷ | 1,739,222) |
| Dec 31, 2018 | 84.19% | = | 100 | × | 1,177,562) | ÷ | 1,398,721) |
| Dec 31, 2017 | 85.54% | = | 100 | × | 782,981) | ÷ | 915,338) |
| Dec 31, 2016 | 91.63% | = | 100 | × | 720,044) | ÷ | 785,856) |
| Dec 31, 2015 | 51.40% | = | 100 | × | 512,951) | ÷ | 997,997) |
| Dec 31, 2014 | 58.20% | = | 100 | × | 846,912) | ÷ | 1,455,062) |
| Dec 31, 2013 | 51.12% | = | 100 | × | 820,470) | ÷ | 1,604,834) |
| Dec 31, 2012 | 63.75% | = | 100 | × | 660,931) | ÷ | 1,036,749) |
| Dec 31, 2011 | 74.08% | = | 100 | × | 628,962) | ÷ | 849,022) |
| Dec 31, 2010 | 56.50% | = | 100 | × | 509,799) | ÷ | 902,316) |
| Dec 31, 2009 | 60.52% | = | 100 | × | 435,994) | ÷ | 720,459) |
| Dec 31, 2008 | 97.86% | = | 100 | × | 311,405) | ÷ | 318,199) |
| Dec 31, 2007 | 36.12% | = | 100 | × | 214,154) | ÷ | 592,922) |
| Dec 31, 2006 | 81.80% | = | 100 | × | 559,061) | ÷ | 683,423) |
| Dec 31, 2005 | 48.31% | = | 100 | × | 493,244) | ÷ | 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 data reveals notable fluctuations in net income attributable to the company over the analyzed period. Initially, net income increased from approximately 493 million US dollars in 2005 to a peak near 559 million in 2006, followed by a significant decline in 2007 to around 214 million. Subsequently, net income demonstrated a recovery and sustained growth trend, reaching over 1.6 billion US dollars by 2022, indicative of overall operational expansion and profitability enhancement.
Stockholders’ equity exhibits a variable pattern with initial decline from slightly above 1 billion US dollars in 2005 to under 600 million by 2007 and further dipping to about 318 million in 2008. From 2009 onward, equity shows consistent growth, rising to nearly 3.3 billion US dollars in 2022. This growth trajectory suggests improved capital retention and reinvestment, underpinning stronger financial stability over time.
The return on equity (ROE) percentage demonstrates substantial volatility, with extremely high values recorded at several points, such as nearly 98% in 2008 and over 90% in 2016. Despite fluctuations, the overall trend reflects a generally high ROE across the period, with percentages mostly maintaining above 50%, indicating effective profitability relative to equity. However, the peak values in the earlier years may be influenced by the low equity base during those times, resulting in amplified ROE figures.
- Net Income
- Fluctuated significantly initially but showed a strong upward trend from 2008 onwards, nearly quadrupling by 2022 compared to early years.
- Stockholders’ Equity
- Experienced a marked decline in the first half of the period but consistently increased since 2009, more than tripling by 2022 compared to its low point.
- Return on Equity (ROE)
- Exhibited high volatility with several peaks associated with low equity levels. Overall remained robust, indicating sustained profitability relative to shareholders’ equity despite the equity fluctuations.
Comparison to Competitors
Hershey Co., ROE, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 49.85% | 39.59% | 10.11% | 51.96% | — |
| Dec 31, 2021 | 53.59% | 42.48% | 15.21% | 47.48% | — |
| Dec 31, 2020 | 57.23% | 40.14% | 12.89% | 52.92% | — |
| Dec 31, 2019 | 66.10% | 46.99% | 14.19% | 49.47% | — |
| Dec 31, 2018 | 84.19% | 37.89% | 13.19% | 86.20% | — |
| Dec 31, 2017 | 85.54% | 7.31% | 11.19% | 44.60% | — |
| Dec 31, 2016 | 91.63% | 28.30% | 6.59% | 57.04% | — |
| Dec 31, 2015 | 51.40% | 28.77% | 25.94% | 45.73% | — |
| Dec 31, 2014 | 58.20% | 23.41% | 7.87% | 37.35% | — |
| Dec 31, 2013 | 51.12% | 25.88% | 12.09% | 27.76% | — |
| Dec 31, 2012 | 63.75% | 27.51% | 9.40% | 27.71% | — |
| Dec 31, 2011 | 74.08% | 27.10% | 10.02% | 31.29% | 3,751.53% |
| Dec 31, 2010 | 56.50% | 38.09% | 11.48% | 29.86% | 207.05% |
| Dec 31, 2009 | 60.52% | 27.52% | 11.67% | 35.38% | 110.95% |
| Dec 31, 2008 | 97.86% | 28.37% | 13.07% | 42.47% | 91.87% |
| Dec 31, 2007 | 36.12% | 27.51% | 9.49% | 32.83% | — |
| Dec 31, 2006 | 81.80% | 30.02% | 10.72% | 36.71% | — |
| Dec 31, 2005 | 48.31% | 29.79% | 8.89% | 28.62% | — |
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., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 49.85% | 51.06% |
| Dec 31, 2021 | 53.59% | 53.84% |
| Dec 31, 2020 | 57.23% | 55.44% |
| Dec 31, 2019 | 66.10% | 55.17% |
| Dec 31, 2018 | 84.19% | 67.69% |
| Dec 31, 2017 | 85.54% | 35.87% |
| Dec 31, 2016 | 91.63% | 46.07% |
| Dec 31, 2015 | 51.40% | 51.57% |
| Dec 31, 2014 | 58.20% | 37.04% |
| Dec 31, 2013 | 51.12% | 33.90% |
| Dec 31, 2012 | 63.75% | 32.24% |
| Dec 31, 2011 | 74.08% | 30.95% |
| Dec 31, 2010 | 56.50% | 32.24% |
| Dec 31, 2009 | 60.52% | 30.24% |
| Dec 31, 2008 | 97.86% | 33.30% |
| Dec 31, 2007 | 36.12% | 21.47% |
| Dec 31, 2006 | 81.80% | 22.65% |
| Dec 31, 2005 | 48.31% | 19.24% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 49.85% | 32.10% |
| Dec 31, 2021 | 53.59% | 31.40% |
| Dec 31, 2020 | 57.23% | 30.98% |
| Dec 31, 2019 | 66.10% | 22.71% |
| Dec 31, 2018 | 84.19% | 28.05% |
| Dec 31, 2017 | 85.54% | 25.14% |
| Dec 31, 2016 | 91.63% | 25.00% |
| Dec 31, 2015 | 51.40% | 23.15% |
| Dec 31, 2014 | 58.20% | 23.21% |
| Dec 31, 2013 | 51.12% | 24.09% |
| Dec 31, 2012 | 63.75% | 23.55% |
| Dec 31, 2011 | 74.08% | 23.75% |
| Dec 31, 2010 | 56.50% | 24.19% |
| Dec 31, 2009 | 60.52% | 23.20% |
| Dec 31, 2008 | 97.86% | 22.49% |
| Dec 31, 2007 | 36.12% | 18.15% |
| Dec 31, 2006 | 81.80% | 18.58% |
| Dec 31, 2005 | 48.31% | 22.40% |
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).