Hershey Co (HSY)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 730,746 | 401,902 | 463,889 | 329,266 | 1,143,990 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,929,500 | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 |
| Cash ratio | 0.19 | 0.13 | 0.14 | 0.13 | 0.60 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($730,746K
+ $—K)
÷ $3,929,500K
= 0.19
The cash ratio of Hershey Co over the five-year period from December 31, 2020, to December 31, 2024, displays some fluctuation. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents alone.
Hershey Co's cash ratio decreased from 0.60 in 2020 to 0.13 in 2021, indicating a significant reduction in the company's ability to cover its short-term obligations solely with cash and cash equivalents. However, there was a slight improvement in 2022 and 2023, with the cash ratio hovering around 0.14 and 0.13, respectively.
Notably, there was a notable increase in the cash ratio to 0.19 in 2024, suggesting an enhancement in Hershey Co's ability to meet its short-term obligations with available cash resources.
Overall, while the cash ratio fluctuated during the period under review, the observed trends indicate a need for scrutiny to ensure adequate liquidity management in the future.
Peer comparison
Dec 31, 2024