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 performance from 2005 to 2022 is characterized by consistently high Return on Equity (ROE), though the metric exhibits significant volatility. While net income grew substantially over the seventeen-year span, the ROE percentage has trended downward in the most recent five-year window, suggesting a normalization of the ratio as the equity base expanded.
- Net Income Trends
- Net income attributable to the company grew from $493.2 million in 2005 to $1.64 billion in 2022. Despite periodic fluctuations—most notably a sharp decline in 2007 and another in 2015—the overall trajectory demonstrates a strong long-term upward trend in profitability.
- Stockholders' Equity Dynamics
- Equity levels were highly volatile between 2005 and 2012, reaching a minimum of $318.2 million in 2008. Following this period, a sustained expansion of the equity base occurred, with stockholders' equity rising from $1.6 billion in 2013 to approximately $3.3 billion by 2022.
- Return on Equity (ROE) Interpretation
- ROE remained exceptionally high throughout the period, never falling below 36.12%. The peak ROE of 97.86% in 2008 was driven primarily by a significant contraction in stockholders' equity rather than an increase in earnings. Between 2016 and 2022, a steady decline in ROE is observed, moving from 91.63% to 49.85%. This downward trend is a result of the growth in the equity denominator outpacing the growth in net income.
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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).