Financial Situation

Taken from Hershey’s 2009 form 10-K

FINANCIAL CONDITION

Our financial condition remained strong during 2009. Solid cash flow from operations and our liquidity, leverage and capital structure contributed to our continued investment grade credit rating by recognized rating agencies.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS-EXECUTIVE OVERVIEW

Our results for the year ended December 31, 2009 demonstrated excellent progress in a difficult economic environment. We exceeded net sales targets, while implementing price increases and operational efficiency improvements necessary to offset significant increases in input and employee benefits costs. We have essentially completed the global supply chain transformation program and have achieved our objectives. We increased advertising investment in our core brands in North America and in certain of our key international markets, while also achieving strong growth in adjusted earnings per share-diluted. We generated strong cash flow from operations and our financial position remains solid.

Net sales increased 3.2%, which was within our long-term growth target. The increase was driven by price realization, as sales volumes declined at less than expected rates due to pricing elasticity. Earnings per share growth exceeded our long-term objective and our North American market share increased during the year.

Our financial results and marketplace performance for the year indicate that our consumer-driven approach to core brand investment along with necessary pricing actions enable us to continue to meet our long-term financial goals. Our efforts will remain focused toward implementing our major strategic initiatives to deliver sustainable long-term growth in the evolving marketplace.

The Numbers:

                                            Common Stock

                                               Price Range

2009                       High           Low

Q1                          $38.23        $30.27

Q2                          $37.83        $33.70

Q3                          $42.25        $35.78

Q4                          $41.62        $35.05

Test	2009	2008	2007
Gross Profit Margin	38.70%	34.20%	33.00%
Return(loss) on Assets	21.20%	(24.10%)	7.10%
Earnings per Share	$1.90	$1.36	$0.93
Current Ratio	1.52	1.06	no data
Debt-to-Asset Ratio	0.79	0.90	no data

These financial tests all indicate the the company’s financial trends are moving in the right direction.  It does not appear that the company has excessive debt.

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