Hershey Co (HSY)
Payables 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 |
| Payables | US$ in thousands | 1,086,180 | 1,085,020 | 1,014,060 | 1,004,910 | 970,558 | 915,299 | 876,193 | 825,231 | 692,338 | 671,855 | 615,641 | 553,642 | 580,058 | 589,586 | 530,042 | 531,928 | 550,828 | 553,561 | 479,792 | 500,633 |
| Payables turnover | 7.65 | 7.44 | 7.84 | 7.83 | 8.50 | 8.80 | 8.72 | 8.78 | 10.15 | 9.47 | 9.22 | 9.10 | 7.67 | 7.43 | 8.36 | 8.29 | 7.92 | 7.68 | 8.91 | 8.67 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,309,540K ÷ $1,086,180K
= 7.65
The payables turnover ratio for Hershey Company has shown some fluctuations over the eight quarters presented in the table. The ratio indicates the company's efficiency in managing its accounts payable by measuring how many times a company pays off its average accounts payable balance in a given period.
The trend in the payables turnover ratio for Hershey Company has been relatively stable, with values ranging from 5.68 to 7.03. A higher payables turnover ratio generally suggests that the company is effectively managing its payments to suppliers and creditors.
In the most recent quarter, Q4 2023, the payables turnover ratio was 5.68, which was lower than the previous quarter's ratio of 6.56. This decrease may indicate that Hershey Company took longer to pay off its accounts payable in Q4 2023 compared to Q3 2023. However, it is important to consider industry benchmarks and company-specific factors when evaluating the significance of these changes.
Overall, Hershey Company has maintained a moderate to high level of efficiency in managing its accounts payable over the past eight quarters, as evidenced by the range of payables turnover ratios observed. Monitoring this ratio over time can provide insights into the company's working capital management and supplier relationships.
Peer comparison
Dec 31, 2023