Hershey Co (HSY)
Working capital 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 |
| Total current assets | US$ in thousands | 2,912,100 | 2,620,410 | 2,246,210 | 2,977,900 | 2,117,100 |
| Total current liabilities | US$ in thousands | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 | 2,008,790 |
| Working capital turnover | — | — | — | 7.50 | 73.74 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,955,600K ÷ ($2,912,100K – $3,008,350K)
= —
The working capital turnover ratio for Hershey Company has shown a significant decrease over the years, with a notable drop from 73.74 in 2019 to 7.50 in 2020. Unfortunately, the data for 2021 to 2023 is not available. This decreasing trend suggests that the company may be becoming less efficient in managing its working capital to generate sales. A lower working capital turnover ratio could indicate that Hershey is holding excess inventory or not effectively managing its accounts receivable and accounts payable. It is essential for the company to closely monitor and improve its working capital turnover to enhance operational efficiency and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023