Hershey Co (HSY)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,901,380 | 6,166,650 | 5,920,510 | 4,922,740 | 4,448,450 |
| Inventory | US$ in thousands | 1,254,090 | 1,341,000 | 1,173,120 | 988,511 | 964,207 |
| Inventory turnover | 4.71 | 4.60 | 5.05 | 4.98 | 4.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,901,380K ÷ $1,254,090K
= 4.71
The inventory turnover ratio for Hershey Co has shown a relatively stable trend over the years, ranging from 4.60 to 5.05. This indicates that Hershey Co is effectively managing its inventory levels and converting them into sales within a reasonable timeframe.
In 2020, the inventory turnover ratio was 4.61, which improved to 4.98 in 2021 and further increased to 5.05 in 2022, suggesting a more efficient management of inventory during these years. However, there was a slight decrease in 2023 to 4.60, which may indicate a temporary slowdown in inventory turnover efficiency.
Overall, Hershey Co's inventory turnover ratio has remained at healthy levels, signifying effective inventory management practices. By consistently maintaining a relatively high inventory turnover ratio, Hershey Co is likely optimizing its working capital and reducing the risk of obsolete inventory.
Peer comparison
Dec 31, 2024