Hershey Co (HSY)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,309,540 | 8,067,130 | 7,950,420 | 7,872,590 | 8,247,670 | 8,056,470 | 7,644,690 | 7,244,850 | 7,026,750 | 6,363,940 | 5,678,830 | 5,040,017 | 4,448,447 | 4,381,487 | 4,432,787 | 4,410,483 | 4,363,763 | 4,251,103 | 4,276,103 | 4,341,825 |
| Inventory | US$ in thousands | 1,341,000 | 1,347,820 | 1,385,420 | 1,180,370 | 1,173,120 | 1,184,380 | 1,208,240 | 1,031,500 | 988,511 | 1,026,540 | 1,060,420 | 909,802 | 964,207 | 958,483 | 999,380 | 832,193 | 815,251 | 969,071 | 957,953 | 791,289 |
| Inventory turnover | 6.20 | 5.99 | 5.74 | 6.67 | 7.03 | 6.80 | 6.33 | 7.02 | 7.11 | 6.20 | 5.36 | 5.54 | 4.61 | 4.57 | 4.44 | 5.30 | 5.35 | 4.39 | 4.46 | 5.49 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,309,540K ÷ $1,341,000K
= 6.20
Hershey Company's inventory turnover has shown some variability over the past eight quarters. In Q1 2023, the inventory turnover was 5.17, indicating that the company sold and replaced its inventory 5.17 times during that quarter. This was a significant increase compared to the previous quarter (Q4 2022) when the inventory turnover was 5.05.
While there has been some fluctuation in inventory turnover over the quarters, the company generally maintains a healthy level of inventory turnover, with figures consistently above 4. This suggests that Hershey Company effectively manages its inventory levels and is able to convert its inventory into sales efficiently.
It is important for Hershey Company to continue monitoring its inventory turnover to ensure optimal inventory management practices and to avoid potential risks associated with obsolete or excess inventory. Overall, the trend of inventory turnover for Hershey Company appears to be stable and reflective of efficient inventory management.
Peer comparison
Dec 31, 2023
Dec 31, 2023