Hershey Co (HSY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 401,902 | 463,889 | 329,266 | 1,143,990 | 493,262 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 823,617 | 711,203 | 671,464 | 615,233 | 568,509 |
| Total current liabilities | US$ in thousands | 3,008,350 | 3,257,150 | 2,493,310 | 1,891,740 | 2,008,790 |
| Quick ratio | 0.41 | 0.36 | 0.40 | 0.93 | 0.53 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,902K
+ $—K
+ $823,617K)
÷ $3,008,350K
= 0.41
The quick ratio of Hershey Company has fluctuated over the past five years. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stands at 0.52, indicating that for every dollar of current liabilities, Hershey has $0.52 of current assets readily available to cover those obligations. This suggests a slight improvement compared to 2022 when the quick ratio was 0.44.
The quick ratio was relatively stable in 2021 at 0.50, but it took a significant dip in 2020 to 1.06, indicating a potential excess of highly liquid assets relative to short-term liabilities. However, this anomaly may be due to specific circumstances or accounting adjustments during that year.
In 2019, the quick ratio was 0.65, showing a moderate level of liquidity to cover short-term obligations, which was consistent with the company's performance in prior years.
Overall, Hershey's quick ratio has shown variability over the years, which may warrant further investigation into the company's liquidity management practices and its ability to meet short-term financial obligations effectively.
Peer comparison
Dec 31, 2023