Total Asset Turnover
since 2005
Calculation
Hershey Co., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.95 | = | 10,419,294) | ÷ | 10,948,820) |
| Dec 31, 2021 | 0.86 | = | 8,971,337) | ÷ | 10,412,231) |
| Dec 31, 2020 | 0.89 | = | 8,149,719) | ÷ | 9,131,845) |
| Dec 31, 2019 | 0.98 | = | 7,986,252) | ÷ | 8,140,395) |
| Dec 31, 2018 | 1.01 | = | 7,791,069) | ÷ | 7,703,020) |
| Dec 31, 2017 | 1.35 | = | 7,515,426) | ÷ | 5,553,726) |
| Dec 31, 2016 | 1.35 | = | 7,440,181) | ÷ | 5,524,333) |
| Dec 31, 2015 | 1.38 | = | 7,386,626) | ÷ | 5,344,371) |
| Dec 31, 2014 | 1.32 | = | 7,421,768) | ÷ | 5,629,516) |
| Dec 31, 2013 | 1.33 | = | 7,146,079) | ÷ | 5,357,488) |
| Dec 31, 2012 | 1.40 | = | 6,644,252) | ÷ | 4,754,839) |
| Dec 31, 2011 | 1.38 | = | 6,080,788) | ÷ | 4,412,199) |
| Dec 31, 2010 | 1.33 | = | 5,671,009) | ÷ | 4,272,732) |
| Dec 31, 2009 | 1.44 | = | 5,298,668) | ÷ | 3,675,031) |
| Dec 31, 2008 | 1.41 | = | 5,132,768) | ÷ | 3,634,719) |
| Dec 31, 2007 | 1.16 | = | 4,946,716) | ÷ | 4,247,113) |
| Dec 31, 2006 | 1.19 | = | 4,944,230) | ÷ | 4,157,565) |
| Dec 31, 2005 | 1.13 | = | 4,835,974) | ÷ | 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 analysis of asset utilization from 2005 to 2022 reveals a distinct transition in operational efficiency. While net sales exhibited consistent growth throughout the period, the relationship between revenue generation and the asset base shifted significantly after 2017, leading to a decline in the efficiency of asset deployment.
- Net Sales Performance
- Net sales demonstrated a sustained upward trajectory, increasing from approximately $4.84 billion in 2005 to $10.42 billion by 2022. This growth was steady for the first decade and accelerated further in the final few years of the period.
- Asset Base Evolution
- Total assets remained relatively stable between 2005 and 2017, generally fluctuating within the $3.6 billion to $5.6 billion range. However, a substantial expansion occurred starting in 2018, when total assets increased sharply to $7.7 billion and continued to climb, reaching $10.95 billion by 2022.
- Total Asset Turnover Dynamics
- The total asset turnover ratio remained robust between 2005 and 2017, oscillating between 1.13 and 1.44, with a peak efficiency observed in 2009. A significant downward trend emerged in 2018, as the ratio fell to 1.01. This decline continued through 2021, where it reached a period low of 0.86, before experiencing a modest recovery to 0.95 in 2022.
The divergence between sales growth and asset growth after 2017 indicates that the expansion of the asset base outpaced the growth in revenue. This suggests that significant investments or acquisitions made during this period have not yet produced proportional increases in net sales, resulting in a lower total asset turnover ratio and a decrease in overall asset productivity compared to the 2005-2017 era.
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Comparison to Competitors
Hershey Co., total asset turnover, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.95 | 0.46 | 0.44 | 0.94 | 0.51 |
| Dec 31, 2021 | 0.86 | 0.41 | 0.43 | 0.86 | 0.76 |
| Dec 31, 2020 | 0.89 | 0.38 | 0.39 | 0.76 | 0.64 |
| Dec 31, 2019 | 0.98 | 0.43 | 0.40 | 0.86 | 0.70 |
| Dec 31, 2018 | 1.01 | 0.38 | 0.41 | 0.83 | 0.74 |
| Dec 31, 2017 | 1.35 | 0.40 | 0.41 | 0.80 | 0.67 |
| Dec 31, 2016 | 1.35 | 0.48 | 0.42 | 0.85 | 0.72 |
| Dec 31, 2015 | 1.38 | 0.49 | 0.47 | 0.91 | 0.79 |
| Dec 31, 2014 | 1.32 | 0.50 | 0.51 | 0.95 | 0.85 |
| Dec 31, 2013 | 1.33 | 0.52 | 0.49 | 0.86 | 0.82 |
| Dec 31, 2012 | 1.40 | 0.56 | 0.46 | 0.88 | 0.83 |
| Dec 31, 2011 | 1.38 | 0.58 | 0.58 | 0.91 | 0.88 |
| Dec 31, 2010 | 1.33 | 0.48 | 0.52 | 0.85 | 0.78 |
| Dec 31, 2009 | 1.44 | 0.64 | 0.61 | 1.08 | 0.72 |
| Dec 31, 2008 | 1.41 | 0.79 | 0.67 | 1.20 | 0.78 |
| Dec 31, 2007 | 1.16 | 0.67 | 0.55 | 1.14 | — |
| Dec 31, 2006 | 1.19 | 0.80 | 0.62 | 1.17 | — |
| Dec 31, 2005 | 1.13 | 0.79 | 0.59 | 1.03 | — |
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., total asset turnover, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 0.95 | 0.61 |
| Dec 31, 2021 | 0.86 | 0.60 |
| Dec 31, 2020 | 0.89 | 0.54 |
| Dec 31, 2019 | 0.98 | 0.59 |
| Dec 31, 2018 | 1.01 | 0.58 |
| Dec 31, 2017 | 1.35 | 0.56 |
| Dec 31, 2016 | 1.35 | 0.61 |
| Dec 31, 2015 | 1.38 | 0.64 |
| Dec 31, 2014 | 1.32 | 0.67 |
| Dec 31, 2013 | 1.33 | 0.65 |
| Dec 31, 2012 | 1.40 | 0.66 |
| Dec 31, 2011 | 1.38 | 0.70 |
| Dec 31, 2010 | 1.33 | 0.62 |
| Dec 31, 2009 | 1.44 | 0.74 |
| Dec 31, 2008 | 1.41 | 0.83 |
| Dec 31, 2007 | 1.16 | 0.72 |
| Dec 31, 2006 | 1.19 | 0.81 |
| Dec 31, 2005 | 1.13 | 0.76 |
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., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 0.95 | 1.47 |
| Dec 31, 2021 | 0.86 | 1.41 |
| Dec 31, 2020 | 0.89 | 1.32 |
| Dec 31, 2019 | 0.98 | 1.39 |
| Dec 31, 2018 | 1.01 | 1.39 |
| Dec 31, 2017 | 1.35 | 1.34 |
| Dec 31, 2016 | 1.35 | 1.35 |
| Dec 31, 2015 | 1.38 | 1.37 |
| Dec 31, 2014 | 1.32 | 1.32 |
| Dec 31, 2013 | 1.33 | 1.30 |
| Dec 31, 2012 | 1.40 | 1.30 |
| Dec 31, 2011 | 1.38 | 1.27 |
| Dec 31, 2010 | 1.33 | 1.24 |
| Dec 31, 2009 | 1.44 | 1.36 |
| Dec 31, 2008 | 1.41 | 1.35 |
| Dec 31, 2007 | 1.16 | 1.32 |
| Dec 31, 2006 | 1.19 | 1.33 |
| Dec 31, 2005 | 1.13 | 1.52 |
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).