Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Hershey Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hershey Co. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hershey Co. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hershey Co. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hershey Co. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hershey Co. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hershey Co. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hershey Co. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hershey Co. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hershey Co. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Equity
Hershey Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Total The Hershey Company stockholders’ equity | 3,299,544) | 2,757,229) | 2,234,352) | 1,739,222) | 1,398,721) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.45 | 1.82 | 2.06 | 2.45 | 3.19 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Coca-Cola Co. | 1.62 | 1.86 | 2.22 | 2.25 | — | |
| Mondelēz International Inc. | 0.85 | 0.69 | 0.73 | 0.68 | — | |
| PepsiCo Inc. | 2.28 | 2.51 | 3.28 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Food, Beverage & Tobacco | 2.44 | 2.28 | 2.90 | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 1.08 | 1.07 | 1.24 | — | — | |
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).
1 2022 Calculation
Debt to equity = Total debt ÷ Total The Hershey Company stockholders’ equity
= 4,791,345 ÷ 3,299,544 = 1.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hershey Co. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Hershey Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Current operating lease liabilities | 31,787) | 36,292) | 36,578) | 29,209) | —) | |
| Non-current operating lease liabilities | 294,849) | 310,899) | 181,871) | 184,163) | —) | |
| Total debt (including operating lease liability) | 5,117,981) | 5,376,085) | 4,821,074) | 4,479,857) | 4,457,596) | |
| Total The Hershey Company stockholders’ equity | 3,299,544) | 2,757,229) | 2,234,352) | 1,739,222) | 1,398,721) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.55 | 1.95 | 2.16 | 2.58 | 3.19 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 1.68 | 1.92 | 2.30 | 2.33 | — | |
| Mondelēz International Inc. | 0.88 | 0.71 | 0.75 | 0.70 | — | |
| PepsiCo Inc. | 2.42 | 2.64 | 3.41 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 2.53 | 2.36 | 3.00 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.20 | 1.19 | 1.39 | — | — | |
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).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total The Hershey Company stockholders’ equity
= 5,117,981 ÷ 3,299,544 = 1.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hershey Co. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Hershey Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Total The Hershey Company stockholders’ equity | 3,299,544) | 2,757,229) | 2,234,352) | 1,739,222) | 1,398,721) | |
| Total capital | 8,090,889) | 7,786,123) | 6,836,977) | 6,005,707) | 5,856,317) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.59 | 0.65 | 0.67 | 0.71 | 0.76 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Coca-Cola Co. | 0.62 | 0.65 | 0.69 | 0.69 | — | |
| Mondelēz International Inc. | 0.46 | 0.41 | 0.42 | 0.40 | — | |
| PepsiCo Inc. | 0.69 | 0.72 | 0.77 | — | — | |
| Philip Morris International Inc. | 1.26 | 1.57 | 1.66 | 1.59 | — | |
| Debt to Capital, Sector | ||||||
| Food, Beverage & Tobacco | 0.71 | 0.70 | 0.74 | — | — | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.52 | 0.52 | 0.55 | — | — | |
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).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,791,345 ÷ 8,090,889 = 0.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hershey Co. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Hershey Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Current operating lease liabilities | 31,787) | 36,292) | 36,578) | 29,209) | —) | |
| Non-current operating lease liabilities | 294,849) | 310,899) | 181,871) | 184,163) | —) | |
| Total debt (including operating lease liability) | 5,117,981) | 5,376,085) | 4,821,074) | 4,479,857) | 4,457,596) | |
| Total The Hershey Company stockholders’ equity | 3,299,544) | 2,757,229) | 2,234,352) | 1,739,222) | 1,398,721) | |
| Total capital (including operating lease liability) | 8,417,525) | 8,133,314) | 7,055,426) | 6,219,079) | 5,856,317) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.61 | 0.66 | 0.68 | 0.72 | 0.76 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.63 | 0.66 | 0.70 | 0.70 | — | |
| Mondelēz International Inc. | 0.47 | 0.42 | 0.43 | 0.41 | — | |
| PepsiCo Inc. | 0.71 | 0.73 | 0.77 | — | — | |
| Philip Morris International Inc. | 1.26 | 1.55 | 1.64 | 1.57 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.72 | 0.70 | 0.75 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.54 | 0.54 | 0.58 | — | — | |
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).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,117,981 ÷ 8,417,525 = 0.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hershey Co. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Hershey Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Total assets | 10,948,820) | 10,412,231) | 9,131,845) | 8,140,395) | 7,703,020) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.44 | 0.48 | 0.50 | 0.52 | 0.58 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Coca-Cola Co. | 0.42 | 0.45 | 0.49 | 0.50 | — | |
| Mondelēz International Inc. | 0.32 | 0.29 | 0.30 | 0.29 | — | |
| PepsiCo Inc. | 0.42 | 0.44 | 0.48 | — | — | |
| Philip Morris International Inc. | 0.70 | 0.67 | 0.70 | 0.72 | — | |
| Debt to Assets, Sector | ||||||
| Food, Beverage & Tobacco | 0.45 | 0.44 | 0.47 | — | — | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.30 | 0.30 | 0.33 | — | — | |
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).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,791,345 ÷ 10,948,820 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hershey Co. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Hershey Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 693,790) | 939,423) | 74,041) | 32,282) | 1,197,929) | |
| Current portion of long-term debt | 753,578) | 2,844) | 438,829) | 703,390) | 5,387) | |
| Long-term portion of long-term debt | 3,343,977) | 4,086,627) | 4,089,755) | 3,530,813) | 3,254,280) | |
| Total debt | 4,791,345) | 5,028,894) | 4,602,625) | 4,266,485) | 4,457,596) | |
| Current operating lease liabilities | 31,787) | 36,292) | 36,578) | 29,209) | —) | |
| Non-current operating lease liabilities | 294,849) | 310,899) | 181,871) | 184,163) | —) | |
| Total debt (including operating lease liability) | 5,117,981) | 5,376,085) | 4,821,074) | 4,479,857) | 4,457,596) | |
| Total assets | 10,948,820) | 10,412,231) | 9,131,845) | 8,140,395) | 7,703,020) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.47 | 0.52 | 0.53 | 0.55 | 0.58 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.44 | 0.47 | 0.51 | 0.51 | — | |
| Mondelēz International Inc. | 0.33 | 0.30 | 0.31 | 0.29 | — | |
| PepsiCo Inc. | 0.45 | 0.46 | 0.49 | — | — | |
| Philip Morris International Inc. | 0.71 | 0.69 | 0.72 | 0.74 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.47 | 0.46 | 0.49 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.33 | 0.33 | 0.37 | — | — | |
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).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,117,981 ÷ 10,948,820 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hershey Co. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Hershey Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Coca-Cola Co. | 3.85 | 4.10 | 4.52 | 4.55 | — | |
| Mondelēz International Inc. | 2.65 | 2.37 | 2.46 | 2.37 | — | |
| PepsiCo Inc. | 5.38 | 5.76 | 6.91 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Food, Beverage & Tobacco | 5.37 | 5.16 | 6.13 | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.59 | 3.59 | 3.76 | — | — | |
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).
1 2022 Calculation
Financial leverage = Total assets ÷ Total The Hershey Company stockholders’ equity
= 10,948,820 ÷ 3,299,544 = 3.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hershey Co. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Hershey Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Add: Net income attributable to noncontrolling interest | —) | 5,307) | (3,295) | (2,940) | (6,511) | |
| Add: Income tax expense | 272,254) | 314,405) | 219,584) | 234,032) | 239,010) | |
| Add: Interest expense | 140,095) | 129,846) | 153,471) | 152,122) | 146,858) | |
| Earnings before interest and tax (EBIT) | 2,057,166) | 1,927,070) | 1,648,468) | 1,532,906) | 1,556,919) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 14.68 | 14.84 | 10.74 | 10.08 | 10.60 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 14.25 | 8.78 | 7.78 | 12.40 | — | |
| Mondelēz International Inc. | 9.39 | 16.08 | 12.33 | 9.03 | — | |
| PepsiCo Inc. | 10.57 | 5.94 | 8.24 | — | — | |
| Philip Morris International Inc. | 16.33 | 17.80 | 16.07 | 13.59 | — | |
| Interest Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 12.81 | 9.56 | 10.01 | — | — | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 15.69 | 11.46 | 11.62 | — | — | |
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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,057,166 ÷ 140,095 = 14.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hershey Co. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Fixed Charge Coverage
Hershey Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Add: Net income attributable to noncontrolling interest | —) | 5,307) | (3,295) | (2,940) | (6,511) | |
| Add: Income tax expense | 272,254) | 314,405) | 219,584) | 234,032) | 239,010) | |
| Add: Interest expense | 140,095) | 129,846) | 153,471) | 152,122) | 146,858) | |
| Earnings before interest and tax (EBIT) | 2,057,166) | 1,927,070) | 1,648,468) | 1,532,906) | 1,556,919) | |
| Add: Operating lease cost | 48,988) | 44,444) | 44,547) | 42,580) | 34,157) | |
| Earnings before fixed charges and tax | 2,106,154) | 1,971,514) | 1,693,015) | 1,575,486) | 1,591,076) | |
| Interest expense | 140,095) | 129,846) | 153,471) | 152,122) | 146,858) | |
| Operating lease cost | 48,988) | 44,444) | 44,547) | 42,580) | 34,157) | |
| Fixed charges | 189,083) | 174,290) | 198,018) | 194,702) | 181,015) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 11.14 | 11.31 | 8.55 | 8.09 | 8.79 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 10.14 | 7.41 | 6.45 | 9.47 | — | |
| Mondelēz International Inc. | 6.60 | 10.28 | 8.27 | 6.51 | — | |
| PepsiCo Inc. | 7.28 | 4.85 | 6.06 | — | — | |
| Philip Morris International Inc. | 12.59 | 13.43 | 11.50 | 9.88 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 9.14 | 7.60 | 7.54 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 9.06 | 7.46 | 7.19 | — | — | |
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).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,106,154 ÷ 189,083 = 11.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hershey Co. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |