Hershey Co (HSY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 401,902 | 463,889 | 329,266 | 1,143,990 | 493,262 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 | 2,008,790 |
| Cash ratio | 0.13 | 0.14 | 0.13 | 0.60 | 0.25 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($401,902K
+ $—K)
÷ $3,008,350K
= 0.13
The cash ratio of Hershey Company has been fluctuating over the past five years. In 2023, the cash ratio stands at 0.25, which indicates that the company has $0.25 in cash and cash equivalents for every $1 of current liabilities. This ratio has slightly increased compared to the previous year (0.23 in 2022) but is still lower than the levels observed in 2020 and 2019.
The significant decrease in the cash ratio from 2020 (0.74) to 2021 (0.24) suggests a potential change in the company's cash management or liquidity position. However, the ratio has shown some improvement in 2023.
Overall, a cash ratio of 0.25 implies that Hershey Company may have a lower level of liquidity in terms of readily available cash to cover its short-term liabilities compared to previous years, indicating potential challenges in meeting its immediate financial obligations. It is essential for the company to closely monitor and manage its cash position to ensure adequate liquidity for operational needs and potential contingencies.
Peer comparison
Dec 31, 2023