Stock Analysis on Net
Stock Analysis on Net

Hershey Co. (NYSE:HSY)

This company has been moved to the archive! The financial data has not been updated since July 27, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Hershey Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jul 2, 2023 48.45% = 15.53% × 3.12
Apr 2, 2023 49.11% = 15.29% × 3.21
Dec 31, 2022 49.85% = 15.02% × 3.32
Oct 2, 2022 51.38% = 14.62% × 3.51
Jul 3, 2022 56.35% = 15.39% × 3.66
Apr 3, 2022 55.40% = 15.17% × 3.65
Dec 31, 2021 53.59% = 14.19% × 3.78
Oct 3, 2021 56.69% = 15.19% × 3.73
Jul 4, 2021 63.38% = 16.16% × 3.92
Apr 4, 2021 62.21% = 15.53% × 4.01
Dec 31, 2020 57.23% = 14.00% × 4.09
Sep 27, 2020 57.82% = 12.91% × 4.48
Jun 28, 2020 61.16% = 12.04% × 5.08
Mar 29, 2020 66.81% = 12.61% × 5.30
Dec 31, 2019 66.10% = 14.12% × 4.68
Sep 29, 2019 72.97% = 15.11% × 4.83
Jun 30, 2019 72.69% = 15.62% × 4.65
Mar 31, 2019 79.99% = 14.40% × 5.55
Dec 31, 2018 84.19% = 15.29% × 5.51
Sep 30, 2018 — = — × 6.35
Jul 1, 2018 — = — × 7.05
Apr 1, 2018 — = — × 7.54

Based on: 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2023 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Hershey Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 2, 2023 48.45% = 16.48% × 0.94 × 3.12
Apr 2, 2023 49.11% = 15.81% × 0.97 × 3.21
Dec 31, 2022 49.85% = 15.79% × 0.95 × 3.32
Oct 2, 2022 51.38% = 15.69% × 0.93 × 3.51
Jul 3, 2022 56.35% = 16.76% × 0.92 × 3.66
Apr 3, 2022 55.40% = 17.29% × 0.88 × 3.65
Dec 31, 2021 53.59% = 16.47% × 0.86 × 3.78
Oct 3, 2021 56.69% = 16.23% × 0.94 × 3.73
Jul 4, 2021 63.38% = 16.52% × 0.98 × 3.92
Apr 4, 2021 62.21% = 16.69% × 0.93 × 4.01
Dec 31, 2020 57.23% = 15.69% × 0.89 × 4.09
Sep 27, 2020 57.82% = 14.87% × 0.87 × 4.48
Jun 28, 2020 61.16% = 13.50% × 0.89 × 5.08
Mar 29, 2020 66.81% = 13.94% × 0.90 × 5.30
Dec 31, 2019 66.10% = 14.40% × 0.98 × 4.68
Sep 29, 2019 72.97% = 16.18% × 0.93 × 4.83
Jun 30, 2019 72.69% = 15.51% × 1.01 × 4.65
Mar 31, 2019 79.99% = 14.44% × 1.00 × 5.55
Dec 31, 2018 84.19% = 15.11% × 1.01 × 5.51
Sep 30, 2018 — = — × — × 6.35
Jul 1, 2018 — = — × — × 7.05
Apr 1, 2018 — = — × — × 7.54

Based on: 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2023 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Hershey Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jul 2, 2023 15.53% = 16.48% × 0.94
Apr 2, 2023 15.29% = 15.81% × 0.97
Dec 31, 2022 15.02% = 15.79% × 0.95
Oct 2, 2022 14.62% = 15.69% × 0.93
Jul 3, 2022 15.39% = 16.76% × 0.92
Apr 3, 2022 15.17% = 17.29% × 0.88
Dec 31, 2021 14.19% = 16.47% × 0.86
Oct 3, 2021 15.19% = 16.23% × 0.94
Jul 4, 2021 16.16% = 16.52% × 0.98
Apr 4, 2021 15.53% = 16.69% × 0.93
Dec 31, 2020 14.00% = 15.69% × 0.89
Sep 27, 2020 12.91% = 14.87% × 0.87
Jun 28, 2020 12.04% = 13.50% × 0.89
Mar 29, 2020 12.61% = 13.94% × 0.90
Dec 31, 2019 14.12% = 14.40% × 0.98
Sep 29, 2019 15.11% = 16.18% × 0.93
Jun 30, 2019 15.62% = 15.51% × 1.01
Mar 31, 2019 14.40% = 14.44% × 1.00
Dec 31, 2018 15.29% = 15.11% × 1.01
Sep 30, 2018 — = — × —
Jul 1, 2018 — = — × —
Apr 1, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2023 is the increase in profitability measured by net profit margin ratio.