Hershey Co (HSY)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,912,100 | 3,190,420 | 2,880,900 | 2,726,100 | 2,620,410 | 2,692,730 | 2,428,460 | 2,457,440 | 2,246,210 | 2,741,940 | 2,219,180 | 2,860,020 | 2,977,900 | 3,207,100 | 2,902,940 | 2,854,750 | 2,117,100 | 2,375,060 | 2,093,560 | 2,216,930 |
| 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 |
| Current ratio | 0.97 | 1.09 | 1.06 | 0.83 | 0.80 | 0.79 | 0.74 | 0.96 | 0.90 | 1.44 | 1.40 | 1.61 | 1.57 | 1.44 | 1.31 | 0.99 | 1.05 | 0.80 | 0.88 | 0.92 |
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 eight quarters. In Q4 2023, the current ratio was 0.97, which indicates that the company may have difficulties in meeting its short-term obligations with its current assets alone. However, the ratio improved in Q3 2023 to 1.09, showing a better ability to cover its short-term liabilities. This trend continued in Q2 2023 with a current ratio of 1.06.
In Q1 2023, the current ratio dropped to 0.83, signaling potential liquidity issues. The ratio was even lower in Q4 2022 at 0.80 and Q3 2022 at 0.79, which could indicate a trend of struggling to meet short-term obligations. The ratio improved slightly in Q2 2022 to 0.74 but remained below 1, suggesting a risk of liquidity challenges.
However, there was a significant improvement in Q1 2022 when the current ratio surged to 0.96. This indicates a strengthened ability to cover short-term liabilities with current assets. Overall, while there have been fluctuations in the current ratio, Hershey Company has shown varying levels of liquidity risk over the analyzed period. Further monitoring and analysis of the company's liquidity management may be warranted to ensure financial stability.
Peer comparison
Dec 31, 2023