The Hershey(Hsy) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for HSY

Report - net profit margin

This chart shows the historical trend of net profit margin for HSY compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', HSY's net profit margin was 16.5%, measuring the overall profitability of the company. Industry average for Specialty Foods in '2021' stood at 5.6%.
• In '2022', HSY's net profit margin was 15.8%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Specialty Foods in '2022' stood at 6.6%. Industry average increased by 1.1% compared to previous year.
• In '2023', HSY's net profit margin was 16.7%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Specialty Foods in '2023' stood at 3.8%. Industry average declined by 2.8% from previous year.
• In '2024', HSY's net profit margin was 19.8%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Specialty Foods in '2024' stood at 4.5%. Industry average increased by 0.7% compared to previous year.
Overall, HSY's net profit margin has steadily improved over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.