Hershey Co (HSY)
Payables 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 |
| Payables | US$ in thousands | 1,086,180 | 970,558 | 692,338 | 580,058 | 550,828 |
| Payables turnover | 8.21 | 8.50 | 10.11 | 7.67 | 7.92 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $8,914,520K ÷ $1,086,180K
= 8.21
The payables turnover ratio for Hershey Company has exhibited a decreasing trend over the past five years, with a value of 5.68 in 2023 compared to higher values of 6.10, 7.11, 7.67, and 7.92 in 2022, 2021, 2020, and 2019, respectively. This indicates that the company took longer to pay off its suppliers in 2023 compared to the previous years. A decreasing payables turnover ratio could suggest a less efficient management of payables or potentially strained supplier relationships. It is important for Hershey Company to closely monitor and manage its payables turnover to ensure optimal working capital management and maintain healthy supplier relationships.
Peer comparison
Dec 31, 2023