Hershey Co (HSY)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	—	—	—	—	—	43.95	70.13	—	—	—	—	—	—	10.57	13.75	7.75	7.50	8.21	11.55	—

Based on the provided data for Hershey Co's activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company is managing its inventory. Hershey Co's inventory turnover has been fluctuating over the periods provided, ranging from a low of 4.19 to a high of 5.52. Generally, a higher inventory turnover indicates that the company is selling goods quickly, which is positive for cash flow and working capital management.

2. Receivables Turnover: Unfortunately, specific data on receivables turnover for Hershey Co is unavailable for the periods provided. Receivables turnover ratio assesses how effectively a company is collecting on its credit sales. Without this information, it is challenging to evaluate the company's efficiency in collecting receivables.

3. Payables Turnover: Similar to receivables turnover, data on payables turnover for Hershey Co is not available for the periods provided. The payables turnover ratio evaluates how long a company takes to pay its suppliers. Without this data, the efficiency of Hershey Co in managing its accounts payable cannot be determined.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company is using its working capital to generate sales revenue. Hershey Co's working capital turnover ratio varies significantly, with some periods showing a high ratio, indicating efficient utilization of working capital, while others have no data available, making it difficult to assess.

In conclusion, based on the available data, Hershey Co appears to be efficiently managing its inventory, but further information is needed to evaluate its performance in managing receivables, payables, and working capital effectively.

Average number of days

		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
Days of inventory on hand (DOH)	days	75.66	76.63	87.10	66.13	80.06	80.11	83.03	70.57	72.32	75.49	81.59	73.87	73.29	77.53	82.81	73.39	79.11	79.85	82.29	68.87
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data, Hershey Co's Days of Inventory on Hand (DOH) fluctuated over the analyzed period, ranging from a low of 66.13 days on March 31, 2024, to a high of 87.10 days on June 30, 2024. This indicates variations in the efficiency of managing inventory levels during this timeframe.

However, information regarding Days of Sales Outstanding (DSO) and Number of Days of Payables is not available in the provided dataset. Without this data, it is challenging to assess the company's accounts receivable turnover and accounts payable turnover, which are key components in evaluating liquidity and cash flow efficiency.

In conclusion, while the Days of Inventory on Hand for Hershey Co display variability, further insights into the company's working capital management through DSO and payables turnover ratios would provide a more comprehensive understanding of its operational efficiency.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	3.54	3.60	3.81	3.76	3.85	3.75	3.60	3.47	3.73	3.41	3.66	3.57	3.68	3.67	3.72
Total asset turnover	0.87	0.87	0.89	0.92	0.94	0.94	0.94	0.97	0.95	0.93	0.92	0.88	0.86	0.94	0.98	0.93	0.89	0.87	0.89	0.90

Hershey Co's fixed asset turnover ratio has shown some fluctuations over the years, ranging from 3.41 to 3.85. The company's ability to generate sales from its fixed assets has generally been strong, with the ratio consistently above 3. A higher fixed asset turnover indicates that Hershey is efficiently utilizing its fixed assets to generate sales revenue.

In terms of total asset turnover, Hershey Co's performance has also varied over time, with the ratio moving between 0.86 and 0.98. The company's ability to generate sales from its total assets has been relatively stable, staying within a narrow range. A higher total asset turnover ratio suggests that Hershey is effectively utilizing all of its assets to generate sales.

Overall, Hershey Co's long-term activity ratios indicate that the company is effectively using its assets to generate revenue, both in terms of fixed assets and total assets. However, managers should pay attention to any significant deviations in these ratios to ensure continued efficiency in asset utilization.