Hershey Co (HSY)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 401,902 | 471,252 | 446,161 | 460,346 | 463,889 | 327,741 | 339,722 | 338,055 | 329,266 | 675,516 | 426,201 | 1,132,240 | 1,143,990 | 1,205,890 | 1,165,330 | 1,094,800 | 493,262 | 302,636 | 365,963 | 465,965 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 2,008,790 | 2,982,370 | 2,387,430 | 2,398,180 |
| Cash ratio | 0.13 | 0.16 | 0.16 | 0.14 | 0.14 | 0.10 | 0.10 | 0.13 | 0.13 | 0.35 | 0.27 | 0.64 | 0.60 | 0.54 | 0.53 | 0.38 | 0.25 | 0.10 | 0.15 | 0.19 |
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 for Hershey Company has shown some fluctuations over the past eight quarters. The ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q4 2023 and Q3 2023, the cash ratio was 0.25 and 0.24 respectively, indicating that the company had $0.25 and $0.24 of cash and cash equivalents for every dollar of current liabilities. This suggests a relatively healthy liquidity position during these periods.
However, in Q1 2023, the cash ratio dropped to 0.21, which may indicate a slight decrease in the company's ability to cover its short-term obligations with cash on hand.
Compared to the previous year, there seems to be an improvement in the cash ratio as Q4 2022 and Q3 2022 had lower ratios of 0.23 and 0.17 respectively. This improvement suggests that Hershey Company has been more effective in managing its liquidity and strengthening its financial position.
Overall, despite some fluctuations, Hershey Company has maintained a reasonable level of liquidity as indicated by its cash ratio over the past eight quarters.
Peer comparison
Dec 31, 2023