Financial Statement Analysis of Hershey's Limited 2009-2015

3868 Words Mar 22nd, 2015 16 Pages
ABSTRACT

The Hershey's Company, later referred to as HSY, is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery founded by Milton Hershey in 1894. Hershey's is a public trading company and have filed their annual returns as a public trading company in the United States Securities under Form 10-K.

In this paper, we will use the financial data in the Audited Financial Statement to compute the key financial ratios as an indicator for the Hershey's company in the global financial scale. Through calculations of the profitability, liquidity, stability and shareholder's interest; the five year trends from 2009 to 2013 will be analysed in both an internal and external
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Hershey. Founder by Milton S. Hershey, he grew the company to the largest chocolate manufacturer in North America which produces chocolate and sugar confectionery products. Its principal product groups include chocolate and confectionery products, gum toppings and beverages. It is engaged in manufacturing, marketing, selling and distributing various package types of chocolate and sugar confectionery products under more than 80 brand names. Hershey's Market Share is represented as 31.1% in the confectionary market share as shown in the Figure 1 below:-

Figure 1: Confectionary Market Share (NAISC, 2014)

Hershey's competes in an oligopoly market which is a market is run by a small number of firms that together control the majority of the market share. As global leader in sugar confectionary with US $16.05 billion market capitalization (43% share of the domestic chocolate market), the company now sells its products in 70 countries within North America, Asia, Europe, Middle East, and Africa. Some of Hershey's competitors on a global scale include Cadbury, Nestle, Mars, as shown in Figure 2 below:

Figure 2: Global Market Share for the Confectionary Market 2009 (Reuters, 2009)

HSY is subject to many factors that may affect their financial performance including fluctuations in the