Hershey Co (HSY)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,912,100 | 2,620,410 | 2,246,210 | 2,977,900 | 2,117,100 |
| Total current liabilities | US$ in thousands | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 | 2,008,790 |
| Current ratio | 0.97 | 0.80 | 0.90 | 1.57 | 1.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,912,100K ÷ $3,008,350K
= 0.97
The current ratio of Hershey Company has fluctuated over the past five years. In 2023, the current ratio stood at 0.97, which indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. This marks an improvement from the previous year, where the current ratio was 0.80, which was considered low and may have raised concerns about liquidity. In 2021, the current ratio was 0.90, showing a slight increase from the prior year but still below the ideal level of 1.
However, in 2020, the current ratio rose significantly to 1.57, reflecting a strong ability to cover short-term liabilities with current assets. This improvement may have been attributed to better management of current assets and liabilities. In 2019, the current ratio was 1.05, indicating that the company had a relatively healthy liquidity position in that year.
Overall, the trend in Hershey Company's current ratio suggests some variability in the company's ability to meet short-term obligations with its current assets. It would be important for stakeholders to monitor this ratio closely to ensure that the company maintains a sufficient level of liquidity for its operations.
Peer comparison
Dec 31, 2023