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The Hershey Co Altman Z-Score

: 5.54 (As of Today)
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Good Sign:

Altman Z-score of 5.54 is strong.

The Hershey Co has a Altman Z-Score of 5.54, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

NYSE:HSY' s Altman Z-Score Range Over the Past 10 Years
Min: 3.79   Med: 5.19   Max: 7.65
Current: 5.54

3.79
7.65

During the past 13 years, The Hershey Co's highest Altman Z-Score was 7.65. The lowest was 3.79. And the median was 5.19.


The Hershey Co Altman Z-Score Historical Data

The historical data trend for The Hershey Co's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.39 6.77 5.07 4.72 4.69

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
Altman Z-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 4.02 4.33 4.69 4.98 5.39

Competitive Comparison

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

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

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



The Hershey Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The Hershey Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0712+1.4*0.2591+3.3*0.2143+0.6*5.6762+1.0*0.9782
=5.54

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $8,884 Mil.
Total Current Assets was $2,219 Mil.
Total Current Liabilities was $1,587 Mil.
Retained Earnings was $2,302 Mil.
Pre-Tax Income was 418.416 + 514.194 + 263.4 + 562.508 = $1,759 Mil.
Interest Expense was -31.684 + -37.046 + -38.72 + -38.056 = $-146 Mil.
Revenue was 1989.422 + 2295.948 + 2185.244 + 2219.829 = $8,690 Mil.
Market Cap (Today) was $37,520 Mil.
Total Liabilities was $6,610 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2219.181 - 1587.002)/8883.863
=0.0712

X2=Retained Earnings/Total Assets
=2301.805/8883.863
=0.2591

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1758.518 - -145.506)/8883.863
=0.2143

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=37519.801/6609.97
=5.6762

X5=Revenue/Total Assets
=8690.443/8883.863
=0.9782

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

The Hershey Co has a Altman Z-Score of 5.54 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


The Hershey Co  (NYSE:HSY) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


The Hershey Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of The Hershey Co's Altman Z-Score 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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