Hershey Co (HSY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 730,746 | 401,902 | 463,889 | 329,266 | 1,143,990 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,929,500 | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 |
| Quick ratio | 0.19 | 0.13 | 0.14 | 0.13 | 0.60 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($730,746K
+ $—K
+ $—K)
÷ $3,929,500K
= 0.19
The quick ratio of Hershey Co, a key liquidity measure, indicates the company's ability to meet its short-term obligations using its most liquid assets. The trend in the quick ratio from December 31, 2020, to December 31, 2024, shows fluctuations. The ratio decreased substantially from 0.60 in 2020 to 0.13 in both 2021 and 2023, with a slight increase to 0.14 in 2022 followed by a further uptick to 0.19 in 2024.
A quick ratio below 1.0 suggests that Hershey Co may have difficulty covering its short-term liabilities with its quick assets alone. The significant drop in the ratio in 2021 and 2023 indicates potential challenges in meeting immediate financial obligations. However, the slight improvement in 2022 and notable increase in 2024 may signify better liquidity management or improved asset composition.
Overall, further analysis of Hershey Co's current assets and liabilities composition is needed to fully assess the reasons behind the fluctuating quick ratio and to determine any potential liquidity risks the company may face.
Peer comparison
Dec 31, 2024