Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Hershey Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hershey Co. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hershey Co. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hershey Co. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hershey Co. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Hershey Co. ROA improved from 2020 to 2021 and from 2021 to 2022. |
Gross Profit Margin
Hershey Co., gross profit margin 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) | ||||||
| Gross profit | 4,498,785) | 4,048,598) | 3,701,269) | 3,622,478) | 3,575,325) | |
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 43.18% | 45.13% | 45.42% | 45.36% | 45.89% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 58.14% | 60.27% | 59.31% | 60.77% | — | |
| Mondelēz International Inc. | 35.92% | 39.19% | 39.30% | 39.96% | — | |
| PepsiCo Inc. | 53.03% | 53.35% | 54.82% | — | — | |
| Philip Morris International Inc. | 64.10% | 68.06% | 66.65% | 64.73% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 4,498,785 ÷ 10,419,294 = 43.18%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hershey Co. gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Hershey Co., operating profit margin 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) | ||||||
| Operating profit | 2,260,787) | 2,043,722) | 1,782,698) | 1,595,952) | 1,623,664) | |
| Net sales | 10,419,294) | 8,971,337) | 8,149,719) | 7,986,252) | 7,791,069) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 21.70% | 22.78% | 21.87% | 19.98% | 20.84% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 25.37% | 26.67% | 27.25% | 27.06% | — | |
| Mondelēz International Inc. | 11.22% | 16.20% | 14.50% | 14.86% | — | |
| PepsiCo Inc. | 13.33% | 14.04% | 14.32% | — | — | |
| Philip Morris International Inc. | 38.56% | 41.32% | 40.66% | 35.33% | — | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 19.83% | 21.93% | 21.81% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 8.45% | 8.49% | 8.18% | — | — | |
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
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 2,260,787 ÷ 10,419,294 = 21.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hershey Co. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Profit Margin
Hershey Co., net profit margin 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) | |
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 22.19% | 25.28% | 23.47% | 23.94% | — | |
| Mondelēz International Inc. | 8.63% | 14.97% | 13.37% | 14.96% | — | |
| PepsiCo Inc. | 10.31% | 9.59% | 10.12% | — | — | |
| Philip Morris International Inc. | 28.49% | 29.00% | 28.08% | 24.11% | — | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 15.68% | 17.28% | 16.69% | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 6.12% | 6.21% | 6.23% | — | — | |
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
Net profit margin = 100 × Net income attributable to The Hershey Company ÷ Net sales
= 100 × 1,644,817 ÷ 10,419,294 = 15.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hershey Co. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Return on Equity (ROE)
Hershey Co., ROE 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) | |
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Coca-Cola Co. | 39.59% | 42.48% | 40.14% | 46.99% | — | |
| Mondelēz International Inc. | 10.11% | 15.21% | 12.89% | 14.19% | — | |
| PepsiCo Inc. | 51.96% | 47.48% | 52.92% | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 51.06% | 53.84% | 55.44% | — | — | |
| ROE, Industry | ||||||
| Consumer Staples | 32.10% | 31.40% | 30.98% | — | — | |
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
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hershey Co. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Hershey Co., ROA 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) | |
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Coca-Cola Co. | 10.29% | 10.36% | 8.87% | 10.33% | — | |
| Mondelēz International Inc. | 3.82% | 6.41% | 5.24% | 6.00% | — | |
| PepsiCo Inc. | 9.67% | 8.25% | 7.66% | — | — | |
| Philip Morris International Inc. | 14.67% | 22.06% | 17.98% | 16.76% | — | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.51% | 10.44% | 9.04% | — | — | |
| ROA, Industry | ||||||
| Consumer Staples | 8.95% | 8.75% | 8.24% | — | — | |
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
ROA = 100 × Net income attributable to The Hershey Company ÷ Total assets
= 100 × 1,644,817 ÷ 10,948,820 = 15.02%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Hershey Co. ROA improved from 2020 to 2021 and from 2021 to 2022. |