Hershey Co (HSY)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,050,140 | 6,201,190 | 6,116,140 | 6,279,980 | 6,113,450 | 6,140,730 | 6,090,650 | 6,105,050 | 5,920,500 | 5,726,230 | 5,405,080 | 5,096,480 | 4,922,740 | 4,832,650 | 4,673,950 | 4,524,747 | 4,448,447 | 4,381,487 | 4,432,787 | 4,410,483 |
| Inventory | US$ in thousands | 1,254,090 | 1,301,960 | 1,459,490 | 1,137,860 | 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 |
| Inventory turnover | 4.82 | 4.76 | 4.19 | 5.52 | 4.56 | 4.56 | 4.40 | 5.17 | 5.05 | 4.83 | 4.47 | 4.94 | 4.98 | 4.71 | 4.41 | 4.97 | 4.61 | 4.57 | 4.44 | 5.30 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,050,140K ÷ $1,254,090K
= 4.82
The inventory turnover ratio for Hershey Co over the period under consideration has shown fluctuating trends. The ratio indicates how efficiently the company manages its inventory by quantifying how many times inventory is sold and replaced within a specific time frame.
From March 31, 2020, to March 31, 2021, the inventory turnover ratio increased steadily from 5.30 to 4.97, indicating an improvement in inventory management efficiency. However, the ratio decreased to 4.41 by June 30, 2021, before rebounding to 4.98 by December 31, 2021.
Over the subsequent periods, fluctuations continued with the ratio ranging between 4.19 and 5.52. The highest inventory turnover was recorded on March 31, 2024, indicating that Hershey Co significantly improved its inventory management efficiency.
Overall, Hershey Co's inventory turnover ratio exhibited variability over the period analyzed, but it generally remained within the range of 4.19 to 5.52. Investors and stakeholders may interpret this trend as a reflection of the company's efforts to optimize inventory levels and streamline operations to enhance overall performance and financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024