Hershey Co (HSY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 77.57 | 79.37 | 72.32 | 73.29 | 79.11 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 77.57 | 79.37 | 72.32 | 73.29 | 79.11 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.57 + — – —
= 77.57
The cash conversion cycle of Hershey Co has shown a slight improvement over the years, decreasing from 79.11 days at the end of December 2020 to 73.29 days at the end of December 2021, and further dropping to 72.32 days by the end of December 2022. However, there was a slight increase to 79.37 days by the end of December 2023, followed by a decrease to 77.57 days by the end of December 2024.
Overall, Hershey Co's cash conversion cycle indicates the average number of days it takes for the company to convert its investments in inventory and other resources into cash flow from sales, reflecting efficiency in managing working capital. The decreasing trend in the cash conversion cycle over the years suggests an improvement in the company's ability to efficiently manage its inventory, receivables, and payables, leading to a more effective cash flow process.
Peer comparison
Dec 31, 2024