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The Hershey Co Beneish M-Score

: -2.69 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Hershey Co's Beneish M-Score or its related term are showing as below:

NYSE:HSY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Med: -2.67   Max: -1.93
Current: -2.69

-3.24
-1.93

During the past 13 years, the highest Beneish M-Score of The Hershey Co was -1.93. The lowest was -3.24. And the median was -2.67.


The Hershey Co Beneish M-Score Historical Data

The historical data trend for The Hershey Co's Beneish M-Score 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
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.61 -2.60 -2.37 -2.71 -2.56

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
Beneish M-Score 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 -2.72 -2.77 -2.56 -2.81 -2.69

Competitive Comparison

For the Confectioners subindustry, The Hershey Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Hershey Co's Beneish M-Score falls into.



The Hershey Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of The Hershey Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9009+0.528 * 0.9568+0.404 * 1.1407+0.892 * 1.0935+0.115 * 1.0081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9562+4.679 * -0.0586-0.327 * 0.9048
=-2.69

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $532 Mil.
Revenue was 1989.422 + 2295.948 + 2185.244 + 2219.829 = $8,690 Mil.
Gross Profit was 925.445 + 1048.951 + 962.071 + 1080.024 = $4,016 Mil.
Total Current Assets was $2,219 Mil.
Total Assets was $8,884 Mil.
Property, Plant and Equipment(Net PPE) was $2,548 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General, & Admin. Expense(SGA) was $1,969 Mil.
Total Current Liabilities was $1,587 Mil.
Long-Term Debt & Capital Lease Obligation was $4,268 Mil.
Net Income was 301.23 + 395.799 + 291.387 + 447.283 = $1,436 Mil.
Non Operating Income was -8.335 + -3.656 + -122.911 + -11.644 = $-147 Mil.
Cash Flow from Operations was 408.012 + 609.64 + 604.391 + 481.219 = $2,103 Mil.
Accounts Receivable was $540 Mil.
Revenue was 1707.329 + 2037.317 + 2068.125 + 2134.422 = $7,947 Mil.
Gross Profit was 792.552 + 866.622 + 911.912 + 943.318 = $3,514 Mil.
Total Current Assets was $2,903 Mil.
Total Assets was $8,911 Mil.
Property, Plant and Equipment(Net PPE) was $2,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $290 Mil.
Selling, General, & Admin. Expense(SGA) was $1,883 Mil.
Total Current Liabilities was $2,215 Mil.
Long-Term Debt & Capital Lease Obligation was $4,276 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(532.401 / 8690.443) / (540.398 / 7947.193)
=0.06126281 / 0.0679986
=0.9009

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3514.404 / 7947.193) / (4016.491 / 8690.443)
=0.44221954 / 0.46217333
=0.9568

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2219.181 + 2547.893) / 8883.863) / (1 - (2902.944 + 2388.2) / 8911.071)
=0.46340078 / 0.40622805
=1.1407

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=8690.443 / 7947.193
=1.0935

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(289.722 / (289.722 + 2388.2)) / (306.312 / (306.312 + 2547.893))
=0.10818911 / 0.10731955
=1.0081

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1968.886 / 8690.443) / (1882.896 / 7947.193)
=0.22655761 / 0.23692592
=0.9562

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4267.552 + 1587.002) / 8883.863) / ((4275.837 + 2214.818) / 8911.071)
=0.65900994 / 0.72838102
=0.9048

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1435.699 - -146.546 - 2103.262) / 8883.863
=-0.0586

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The Hershey Co has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.


The Hershey Co Beneish M-Score Related Terms

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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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