Hershey Co (HSY)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 730,746 | 614,951 | 467,058 | 520,404 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,929,500 | 4,195,010 | 3,885,630 | 3,489,030 | 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 |
| Quick ratio | 0.19 | 0.15 | 0.12 | 0.15 | 0.13 | 0.16 | 0.16 | 0.14 | 0.14 | 0.10 | 0.10 | 0.13 | 0.13 | 0.35 | 0.27 | 0.64 | 0.60 | 0.54 | 0.53 | 0.38 |
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 has shown fluctuations over the past few years, ranging from 0.10 to 0.64. A quick ratio below 1 indicates that the company may have difficulties meeting its short-term obligations using its most liquid assets.
During the period under review, the quick ratio improved from 0.38 in March 2020 to a peak of 0.64 in March 2021, suggesting an enhanced ability to cover current liabilities with its quick assets. However, the ratio dropped significantly to 0.10 in June 2022 before modestly recovering to 0.19 by December 2024.
The downward trend seen in mid-2022 could indicate potential liquidity issues or challenges in managing short-term obligations efficiently during that period. It is essential for Hershey Co to closely monitor its quick ratio and ensure it maintains adequate liquidity to meet its short-term financial commitments.
Peer comparison
Dec 31, 2024