Hershey Co (HSY)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,955,600 | 10,318,600 | 8,933,440 | 8,149,720 | 7,986,250 |
| Receivables | US$ in thousands | 823,617 | 711,203 | 671,464 | 615,233 | 568,509 |
| Receivables turnover | 13.30 | 14.51 | 13.30 | 13.25 | 14.05 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $10,955,600K ÷ $823,617K
= 13.30
The receivables turnover ratio for Hershey Company has shown some variability over the past five years. In 2023, the ratio was 13.56, slightly lower than the previous year's ratio of 14.65. This indicates that the company collected its accounts receivable approximately 13.56 times during the year, or about once every 27 days.
While the ratio fluctuated, it remained relatively consistent, ranging between 13.25 and 14.65. This suggests that Hershey Company has been effective in managing its accounts receivable turnover, maintaining a steady pace of collection over the years.
Overall, the receivables turnover ratio indicates how efficiently Hershey Company is collecting payments from its customers. A higher ratio typically signifies faster collection and better management of credit sales, while a lower ratio could indicate potential issues with collecting outstanding receivables.
Peer comparison
Dec 31, 2023