The Hershey Co (The Hershey Co) Interest Coverage

: 11.29 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Hershey Co's Operating Income for the three months ended in Dec. 2023 was $452 Mil. The Hershey Co's Interest Expense for the three months ended in Dec. 2023 was $-40 Mil. The Hershey Co's interest coverage for the quarter that ended in Dec. 2023 was 11.29. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Hershey Co's Interest Coverage or its related term are showing as below:

HSY' s Interest Coverage Range Over the Past 10 Years
Min: 11.28 Med: 15.69 Max: 17.45
Current: 15.75

HSY's Interest Coverage is ranked better than
63.17% of 1374 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs HSY: 15.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Hershey Co Interest Coverage Historical Data

The historical data trend for The Hershey Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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The Hershey Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

11.28

11.80

15.73

16.02

15.68

The Hershey Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																14.09	20.30	13.95	17.47	11.29

Competitive Comparison

For the Confectioners subindustry, The Hershey Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Hershey Co Interest Coverage Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Hershey Co's Interest Coverage falls into.

The Hershey Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Hershey Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, The Hershey Co's Interest Expense was $-162 Mil. Its Operating Income was $2,533 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,066 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2533.298	/	-161.511
	=	15.68

The Hershey Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Hershey Co's Interest Expense was $-40 Mil. Its Operating Income was $452 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,066 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	452.143	/	-40.056
	=	11.29

The higher the ratio, the stronger the company's Financial Strength is.

The Hershey Co (NYSE:HSY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Hershey Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Hershey Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

The Hershey Co (The Hershey Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Hershey Co (NYSE:HSY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HSY:Mexico HSY:Germany HSY:Germany HSY:Germany HSHY34:Brazil HSY:Austria

Address

19 East Chocolate Avenue, Hershey, PA, USA, 17033

Website

https://www.thehersheycompany.com

Hershey is a leading confectionery manufacturer in the U.S. (around a $25 billion market), controlling around 45% of the domestic chocolate space (per IRI, as cited by Hershey). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the U.S., including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix, Pirate Brands, and Dot's Pretzels over the past few years.

Executives

Charles R Raup	officer: President, U.S.	19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Steven E Voskuil	officer: SVP, Chief Financial Officer	5405 WINDWARD PARKWAY, ALPHARETTA GA 30004
Deepak Bhatia	officer: SVP, Chief Technology Officer	THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Pamela M Arway	director	601 HAWAII ST., EL SEGUNDO CA 90245
Michele Buck	officer: SVP, Pres. US Snacks	THE HERSHEY COMPANY, 100 CRYSTAL A DRIVE, HERSHEY PA 17033
Hershey Trust Co Trustee In Trust For Milton Hershey School	10 percent owner	100 MANSION ROAD EAST, P O BOX 445, HERSHEY PA 17033
Jason Reiman	officer: SVP Chief Supply Chain Officer	THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Maria T Kraus	director	THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Rohit Grover	officer: President, International	THE HERSHEY COMPANY, 19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Jennifer Mccalman	officer: Chief Accounting Officer	19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Robert Malcolm	director	C/O LOGITECH INTERNATIONAL S.A., RUE DU SABLON 2-4, MORGES V8 1110
Anthony J. Palmer	director	P.O. BOX 619100, DALLAS TX 75261-9100
Hershey Trust Co	10 percent owner	100 MANSION ROAD EAST, HERSHEY PA 17033
Christopher M Scalia	officer: SVP, CHRO	19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033
Kristen J Riggs	officer: SVP, Chief Growth Officer	19 EAST CHOCOLATE AVENUE, HERSHEY PA 17033