Hershey Co (HSY)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,004,030 | 11,070,300 | 10,743,680 | 10,623,500 | 10,318,580 | 10,004,590 | 9,690,530 | 9,341,870 | 8,933,450 | 8,799,400 | 8,656,350 | 8,386,670 | 8,149,720 | 8,032,600 | 7,947,190 | 8,007,080 | 7,986,250 | 7,906,030 | 7,851,200 | 7,835,600 |
| Receivables | US$ in thousands | 823,617 | 1,127,730 | 764,269 | — | 711,203 | — | — | — | 671,464 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 13.36 | 9.82 | 14.06 | — | 14.51 | — | — | — | 13.30 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $11,004,030K ÷ $823,617K
= 13.36
The receivables turnover ratio measures how efficiently a company collects outstanding credit balances from its customers. Higher turnover ratios generally indicate a more efficient credit and collection process.
Analyzing Hershey Company's receivables turnover from the provided data, we observe fluctuations over the past eight quarters. In Q4 2023, the receivables turnover ratio stood at 13.56, which reflects an increase compared to the previous quarter at 9.90 in Q3 2023. This signifies that Hershey Company was able to collect outstanding receivables more frequently in Q4 2023.
Looking at the trend over the past year, we notice that the receivables turnover ratio has shown variability, with values ranging from a low of 9.90 in Q3 2023 to a high of 14.86 in Q2 2022. This fluctuation may indicate changes in the company's credit policies, sales trends, or industry conditions affecting customer payment patterns.
Overall, while the company experienced fluctuations in its receivables turnover ratio over the analyzed quarters, the general upward trend from Q1 2022 to Q4 2023 suggests an improvement in Hershey Company's efficiency in collecting outstanding receivables from customers. However, it is important to monitor this ratio consistently to assess the company's ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2023