Hershey Co (HSY)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 823,617 | 1,127,730 | 764,269 | — | 711,203 | — | — | — | 671,464 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.41 | 0.54 | 0.44 | 0.14 | 0.36 | 0.10 | 0.10 | 0.13 | 0.40 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,902K
+ $—K
+ $823,617K)
÷ $3,008,350K
= 0.41
The quick ratio measures Hershey Company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
Analyzing the trend in Hershey Company's quick ratio over the past eight quarters, we observe fluctuations. In Q4 2022, the quick ratio stood at 0.44, increased in Q1 and Q2 2023 to 0.47 and 0.55, respectively, and then decreased to 0.52 in Q4 2023. This indicates a mixed performance in liquidity management over this period.
Although the quick ratio improved in the earlier part of 2023, the recent decrease in Q4 2023 may raise concerns about the company's ability to cover its short-term obligations. Hershey Company should closely monitor its liquidity position to ensure it can meet its financial obligations efficiently and effectively.
Peer comparison
Dec 31, 2023