Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Hershey Co., balance sheet: inventory

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Raw materials	372,612)	395,358)	388,600)	271,125)	237,086)
Goods in process	137,298)	110,008)	104,841)	98,842)	107,139)
Finished goods	855,217)	649,082)	645,664)	614,698)	618,798)
Inventories at FIFO	1,365,127)	1,154,448)	1,139,105)	984,665)	963,023)
Adjustment to LIFO	(192,008)	(165,937)	(174,898)	(169,414)	(178,144)
Inventories	1,173,119)	988,511)	964,207)	815,251)	784,879)

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).

Download chart

Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Hershey Co. inventories increased from 2020 to 2021 and from 2021 to 2022.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Inventories
Inventories at LIFO (as reported)	1,173,119)	988,511)	964,207)	815,251)	784,879)
Add: Inventory LIFO reserve	192,008)	165,937)	174,898)	169,414)	178,144)
Inventories at FIFO (adjusted)	1,365,127)	1,154,448)	1,139,105)	984,665)	963,023)
Adjustment to Current Assets
Current assets (as reported)	2,620,406)	2,246,206)	2,977,905)	2,117,102)	2,239,181)
Add: Inventory LIFO reserve	192,008)	165,937)	174,898)	169,414)	178,144)
Current assets (adjusted)	2,812,414)	2,412,143)	3,152,803)	2,286,516)	2,417,325)
Adjustment to Total Assets
Total assets (as reported)	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)
Add: Inventory LIFO reserve	192,008)	165,937)	174,898)	169,414)	178,144)
Total assets (adjusted)	11,140,828)	10,578,168)	9,306,743)	8,309,809)	7,881,164)
Adjustment to Total The Hershey Company Stockholders’ Equity
Total The Hershey Company stockholders’ equity (as reported)	3,299,544)	2,757,229)	2,234,352)	1,739,222)	1,398,721)
Add: Inventory LIFO reserve	192,008)	165,937)	174,898)	169,414)	178,144)
Total The Hershey Company stockholders’ equity (adjusted)	3,491,552)	2,923,166)	2,409,250)	1,908,636)	1,576,865)
Adjustment to Net Income Attributable To The Hershey Company
Net income attributable to The Hershey Company (as reported)	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Add: Increase (decrease) in inventory LIFO reserve	26,071)	(8,961)	5,484)	(8,730)	(2,532)
Net income attributable to The Hershey Company (adjusted)	1,670,888)	1,468,551)	1,284,192)	1,140,962)	1,175,030)

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).

Hershey Co. inventory value on Dec 31, 2022 would be $1,365,127) (in thousands) if the FIFO inventory method was used instead of LIFO. Hershey Co. inventories, valued on a LIFO basis, on Dec 31, 2022 were $1,173,119). Hershey Co. inventories would have been $192,008) higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

Hershey Co., Financial Data: Reported vs. Adjusted

Download chart

Hershey Co., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current Ratio
Reported current ratio (LIFO)	0.80	0.90	1.57	1.05	0.93
Adjusted current ratio (FIFO)	0.86	0.97	1.67	1.14	1.00
Net Profit Margin
Reported net profit margin (LIFO)	15.79%	16.47%	15.69%	14.40%	15.11%
Adjusted net profit margin (FIFO)	16.04%	16.37%	15.76%	14.29%	15.08%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.95	0.86	0.89	0.98	1.01
Adjusted total asset turnover (FIFO)	0.94	0.85	0.88	0.96	0.99
Financial Leverage
Reported financial leverage (LIFO)	3.32	3.78	4.09	4.68	5.51
Adjusted financial leverage (FIFO)	3.19	3.62	3.86	4.35	5.00
Return on Equity (ROE)
Reported ROE (LIFO)	49.85%	53.59%	57.23%	66.10%	84.19%
Adjusted ROE (FIFO)	47.86%	50.24%	53.30%	59.78%	74.52%
Return on Assets (ROA)
Reported ROA (LIFO)	15.02%	14.19%	14.00%	14.12%	15.29%
Adjusted ROA (FIFO)	15.00%	13.88%	13.80%	13.73%	14.91%

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).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Hershey Co. adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hershey Co. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hershey Co. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Hershey Co. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Hershey Co. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hershey Co. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hershey Co., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Current assets	2,620,406)	2,246,206)	2,977,905)	2,117,102)	2,239,181)
Current liabilities	3,257,154)	2,493,313)	1,891,745)	2,008,793)	2,418,566)
Liquidity Ratio
Current ratio¹	0.80	0.90	1.57	1.05	0.93
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	2,812,414)	2,412,143)	3,152,803)	2,286,516)	2,417,325)
Current liabilities	3,257,154)	2,493,313)	1,891,745)	2,008,793)	2,418,566)
Liquidity Ratio
Adjusted current ratio²	0.86	0.97	1.67	1.14	1.00

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).

2022 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 2,620,406 ÷ 3,257,154 = 0.80

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 2,812,414 ÷ 3,257,154 = 0.86

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Hershey Co. adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to The Hershey Company	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Net sales	10,419,294)	8,971,337)	8,149,719)	7,986,252)	7,791,069)
Profitability Ratio
Net profit margin¹	15.79%	16.47%	15.69%	14.40%	15.11%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to The Hershey Company	1,670,888)	1,468,551)	1,284,192)	1,140,962)	1,175,030)
Net sales	10,419,294)	8,971,337)	8,149,719)	7,986,252)	7,791,069)
Profitability Ratio
Adjusted net profit margin²	16.04%	16.37%	15.76%	14.29%	15.08%

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).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to The Hershey Company ÷ Net sales
= 100 × 1,644,817 ÷ 10,419,294 = 15.79%

² Adjusted net profit margin = 100 × Adjusted net income attributable to The Hershey Company ÷ Net sales
= 100 × 1,670,888 ÷ 10,419,294 = 16.04%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hershey Co. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	10,419,294)	8,971,337)	8,149,719)	7,986,252)	7,791,069)
Total assets	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)
Activity Ratio
Total asset turnover¹	0.95	0.86	0.89	0.98	1.01
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Net sales	10,419,294)	8,971,337)	8,149,719)	7,986,252)	7,791,069)
Adjusted total assets	11,140,828)	10,578,168)	9,306,743)	8,309,809)	7,881,164)
Activity Ratio
Adjusted total asset turnover²	0.94	0.85	0.88	0.96	0.99

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).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 10,419,294 ÷ 10,948,820 = 0.95

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 10,419,294 ÷ 11,140,828 = 0.94

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hershey Co. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)
Total The Hershey Company stockholders’ equity	3,299,544)	2,757,229)	2,234,352)	1,739,222)	1,398,721)
Solvency Ratio
Financial leverage¹	3.32	3.78	4.09	4.68	5.51
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	11,140,828)	10,578,168)	9,306,743)	8,309,809)	7,881,164)
Adjusted total The Hershey Company stockholders’ equity	3,491,552)	2,923,166)	2,409,250)	1,908,636)	1,576,865)
Solvency Ratio
Adjusted financial leverage²	3.19	3.62	3.86	4.35	5.00

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total The Hershey Company stockholders’ equity
= 10,948,820 ÷ 3,299,544 = 3.32

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total The Hershey Company stockholders’ equity
= 11,140,828 ÷ 3,491,552 = 3.19

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Hershey Co. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to The Hershey Company	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Total The Hershey Company stockholders’ equity	3,299,544)	2,757,229)	2,234,352)	1,739,222)	1,398,721)
Profitability Ratio
ROE¹	49.85%	53.59%	57.23%	66.10%	84.19%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to The Hershey Company	1,670,888)	1,468,551)	1,284,192)	1,140,962)	1,175,030)
Adjusted total The Hershey Company stockholders’ equity	3,491,552)	2,923,166)	2,409,250)	1,908,636)	1,576,865)
Profitability Ratio
Adjusted ROE²	47.86%	50.24%	53.30%	59.78%	74.52%

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).

2022 Calculations

¹ ROE = 100 × Net income attributable to The Hershey Company ÷ Total The Hershey Company stockholders’ equity
= 100 × 1,644,817 ÷ 3,299,544 = 49.85%

² Adjusted ROE = 100 × Adjusted net income attributable to The Hershey Company ÷ Adjusted total The Hershey Company stockholders’ equity
= 100 × 1,670,888 ÷ 3,491,552 = 47.86%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Hershey Co. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to The Hershey Company	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Total assets	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)
Profitability Ratio
ROA¹	15.02%	14.19%	14.00%	14.12%	15.29%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to The Hershey Company	1,670,888)	1,468,551)	1,284,192)	1,140,962)	1,175,030)
Adjusted total assets	11,140,828)	10,578,168)	9,306,743)	8,309,809)	7,881,164)
Profitability Ratio
Adjusted ROA²	15.00%	13.88%	13.80%	13.73%	14.91%

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).

2022 Calculations

¹ ROA = 100 × Net income attributable to The Hershey Company ÷ Total assets
= 100 × 1,644,817 ÷ 10,948,820 = 15.02%

² Adjusted ROA = 100 × Adjusted net income attributable to The Hershey Company ÷ Adjusted total assets
= 100 × 1,670,888 ÷ 11,140,828 = 15.00%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hershey Co. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Hershey Co. (NYSE:HSY)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Hershey Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Hershey Co., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)