Hershey Co (HSY)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.90 | 60.98 | 63.60 | 54.73 | 51.92 | 53.66 | 57.69 | 51.97 | 51.35 | 58.88 | 68.16 | 65.89 | 79.11 | 79.85 | 82.29 | 68.87 | 68.19 | 83.20 | 81.77 | 66.52 |
| Days of sales outstanding (DSO) | days | 27.32 | 37.18 | 25.96 | — | 25.16 | — | — | — | 27.43 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 47.71 | 49.09 | 46.56 | 46.59 | 42.95 | 41.47 | 41.83 | 41.58 | 35.96 | 38.53 | 39.57 | 40.09 | 47.59 | 49.12 | 43.64 | 44.02 | 46.07 | 47.53 | 40.95 | 42.09 |
| Cash conversion cycle | days | 38.51 | 49.07 | 43.01 | 8.13 | 34.12 | 12.19 | 15.85 | 10.39 | 42.82 | 20.34 | 28.59 | 25.79 | 31.52 | 30.73 | 38.65 | 24.85 | 22.12 | 35.68 | 40.81 | 24.43 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 58.90 + 27.32 – 47.71
= 38.51
The cash conversion cycle of Hershey Company has fluctuated over the past eight quarters, indicating changes in its efficiency in managing cash flows related to its operations.
In Q4 2023, the cash conversion cycle was 42.01 days, which was lower compared to previous quarters. This suggests that Hershey was able to convert its inventory and receivables into cash more quickly during this period.
However, in Q3 2023 and Q2 2023, the cash conversion cycle increased to 61.39 days and 56.76 days, respectively. This indicates that Hershey took longer to convert its inventory and receivables into cash during these quarters, potentially facing challenges in managing working capital efficiently.
In Q1 2023, the cash conversion cycle decreased to 46.80 days, showing some improvement from the previous quarters but still higher compared to Q4 2022, where it was 37.40 days.
Looking further back, Q3 2022, Q2 2022, and Q1 2022 also showed fluctuations in the cash conversion cycle, ranging from 46.98 days to 50.76 days.
Overall, Hershey Company's recent cash conversion cycles suggest varying performance in managing its working capital and converting it into cash. Monitoring these trends over time can provide insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023