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The Hershey Co Interest Coverage

: 14.45 (As of Jun. 2021)
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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 Jun. 2021 was $458 Mil. The Hershey Co's Interest Expense for the three months ended in Jun. 2021 was $-32 Mil. The Hershey Co's interest coverage for the quarter that ended in Jun. 2021 was 14.45. 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:

NYSE:HSY' s Interest Coverage Range Over the Past 10 Years
Min: 11.12   Med: 12.85   Max: 17.45
Current: 14.07

11.12
17.45

NYSE:HSY's Interest Coverage is ranked higher than
56% of the 121 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 8.70 vs. NYSE:HSY: 14.07 )

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.

* Premium members only.

The Hershey Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.90 15.69 11.58 11.28 11.80

The Hershey Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.87 16.07 10.95 14.96 14.45

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.


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. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, The Hershey Co's Interest Expense was $-153 Mil. Its Operating Income was $1,810 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,272 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*1810.344/-153.471
=11.80

The Hershey Co's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, The Hershey Co's Interest Expense was $-32 Mil. Its Operating Income was $458 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,268 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*457.816/-31.684
=14.45

* 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.

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 Business Description

The Hershey Co logo
Industry
Traded in Other Exchanges
Address
19 East Chocolate Avenue, Hershey, PA, USA, 17033
Hershey is a leading confectionery manufacturer in the U.S. (nearly a $25 billion market), controlling around 46% of the domestic chocolate space (per IRI). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 90 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 85 countries, with just 10% of total sales coming from markets outside the U.S., including Brazil, China, 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 and Pirate Brands (including the Pirate's Booty, Smart Puffs, and Original Tings brands) over the past few years.
Executives
Atkins Damien officer: SVP, GC and Secretary THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Arway Pamela M director 601 HAWAII ST. EL SEGUNDO CA 90245
Katzman James C director 6000 N. HOMESTEAD LANE PARADISE VALLEY AZ 85253
Palmer Anthony J. director P.O. BOX 619100 DALLAS TX 75261-9100
Davis Charles A director 1 CAPE MAY ST 1 CAPE MAY ST HARRISON NJ 07029
Dutkowsky Robert M director JD EDWARDS & CO ONE TECHNOLOGY WAY DENVER CO 80237
Haben Mary Kay director C/O EQUITY RESIDENTIAL TWO NORTH RIVERSIDE PLAZA, SUITE 400 CHICAGO IL 60606
Brown James W director FRANKLIN SQUARE CAPITAL PARTNERS 201 ROUSE BLVD. PHILADELPHIA PA 19112
Schoppert Wendy Lee director 6105 TRENTON LANE NORTH MINNEAPOLIS MN 55442
Shedlarz David L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHEDLARZ DAVID L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Malcolm Robert director C/O LOGITECH INTERNATIONAL S.A. RUE DU SABLON 2-4 MORGES V8 1110
Perez Juan R. director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Koken Mary Diane director THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033
Crawford Victor L. director C/O THE PEPSI BOTTLING GROUP, INC. ONE PEPSI WAY SOMERS NY 10589
Buck Michele director, officer: Chairman, President and CEO THE HERSHEY COMPANY 100 CRYSTAL A DRIVE HERSHEY PA 17033

The Hershey Co Headlines

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