Hershey Co (HSY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,914,520 | 8,247,670 | 7,000,910 | 4,448,450 | 4,363,770 |
| Inventory | US$ in thousands | 1,341,000 | 1,173,120 | 988,511 | 964,207 | 815,251 |
| Inventory turnover | 6.65 | 7.03 | 7.08 | 4.61 | 5.35 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,914,520K ÷ $1,341,000K
= 6.65
The inventory turnover ratio for Hershey Company has fluctuated over the past five years. In 2023, it decreased to 4.60 from 5.05 in 2022, indicating that the company sold and replaced its inventory 4.60 times during the year. This decrease may suggest that Hershey Company took longer to sell its inventory compared to the previous year. However, the ratio remains relatively stable compared to 2019 and 2020, indicating efficient management of inventory levels. Overall, the inventory turnover ratio for Hershey Company reflects a balance between managing inventory effectively while meeting customer demand.
Peer comparison
Dec 31, 2023