Hershey Co (HSY)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,202,260 | 10,971,830 | 11,014,330 | 11,430,130 | 11,164,990 | 11,160,220 | 10,858,380 | 10,740,680 | 10,419,290 | 10,093,080 | 9,724,770 | 9,341,610 | 8,971,340 | 8,830,450 | 8,690,440 | 8,408,350 | 8,149,720 | 8,032,600 | 7,947,190 | 8,007,080 |
| Total current assets | US$ in thousands | 3,759,460 | 3,551,800 | 3,335,630 | 3,387,380 | 2,912,100 | 3,190,420 | 2,880,900 | 2,726,100 | 2,620,410 | 2,692,730 | 2,428,460 | 2,457,440 | 2,246,210 | 2,741,940 | 2,219,180 | 2,860,020 | 2,977,900 | 3,207,100 | 2,902,940 | 2,854,750 |
| Total current liabilities | US$ in thousands | 3,929,500 | 4,195,010 | 3,885,630 | 3,489,030 | 3,008,350 | 2,936,480 | 2,726,060 | 3,281,350 | 3,257,150 | 3,388,610 | 3,300,910 | 2,565,640 | 2,493,310 | 1,906,500 | 1,587,000 | 1,774,630 | 1,891,740 | 2,228,190 | 2,214,820 | 2,892,800 |
| Working capital turnover | — | — | — | — | — | 43.95 | 70.13 | — | — | — | — | — | — | 10.57 | 13.75 | 7.75 | 7.50 | 8.21 | 11.55 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,202,260K ÷ ($3,759,460K – $3,929,500K)
= —
The working capital turnover ratio for Hershey Co has shown significant fluctuations over the period provided.
In June 2020, the working capital turnover ratio was 11.55, indicating that the company generated $11.55 in net sales for each dollar of working capital invested. This was a strong performance.
However, the ratio decreased to 7.50 by December 2020 and further to 7.75 by March 2021, suggesting a decline in efficiency in converting working capital into sales during these periods.
The ratio then peaked at 13.75 in June 2021, indicating a substantial improvement in efficiency. This was followed by fluctuations in the ratio, with values ranging from 7.5 to 10.57 until September 2021.
The ratio then increased drastically to 70.13 in June 2023, signaling an exceptional performance in utilizing working capital to generate sales. This spike is likely due to specific business activities or changes in the company's operations during that period.
Subsequently, the ratio decreased to 43.95 in September 2023, indicating a drop in efficiency compared to the previous quarter.
Overall, the working capital turnover ratio for Hershey Co has shown varying levels of efficiency in managing its working capital to generate sales over the given period, with some quarters performing exceptionally well and others experiencing a decline. This metric provides insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2024