Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Hershey Co., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.80 | 0.90 | 1.57 | 1.05 | 0.93 | |
| Quick ratio | 0.36 | 0.40 | 0.93 | 0.53 | 0.49 | |
| Cash ratio | 0.14 | 0.13 | 0.60 | 0.25 | 0.24 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hershey Co. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hershey Co. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hershey Co. cash ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Current Ratio
Hershey Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 2,620,406) | 2,246,206) | 2,977,905) | 2,117,102) | 2,239,181) | |
| Current liabilities | 3,257,154) | 2,493,313) | 1,891,745) | 2,008,793) | 2,418,566) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.80 | 0.90 | 1.57 | 1.05 | 0.93 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.84 | 0.71 | 0.79 | 0.59 | — | |
| Coca-Cola Co. | 1.15 | 1.13 | 1.32 | 0.76 | — | |
| PepsiCo Inc. | 0.80 | 0.83 | 0.98 | 0.86 | — | |
| Philip Morris International Inc. | 0.72 | 0.92 | 1.10 | 1.09 | — | |
| Current Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.86 | 0.92 | 1.06 | 0.85 | — | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.89 | 0.93 | 0.93 | 0.84 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,620,406 ÷ 3,257,154 = 0.80
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hershey Co. current ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Hershey Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 463,889) | 329,266) | 1,143,987) | 493,262) | 587,998) | |
| Accounts receivable, trade, net | 711,203) | 671,464) | 615,233) | 568,509) | 594,145) | |
| Total quick assets | 1,175,092) | 1,000,730) | 1,759,220) | 1,061,771) | 1,182,143) | |
| Current liabilities | 3,257,154) | 2,493,313) | 1,891,745) | 2,008,793) | 2,418,566) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.36 | 0.40 | 0.93 | 0.53 | 0.49 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.67 | 0.54 | 0.56 | 0.28 | — | |
| Coca-Cola Co. | 0.77 | 0.81 | 0.96 | 0.56 | — | |
| PepsiCo Inc. | 0.58 | 0.56 | 0.77 | 0.66 | — | |
| Philip Morris International Inc. | 0.29 | 0.44 | 0.56 | 0.56 | — | |
| Quick Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.54 | 0.59 | 0.72 | 0.56 | — | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.38 | 0.42 | 0.46 | 0.38 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,175,092 ÷ 3,257,154 = 0.36
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hershey Co. quick ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Cash Ratio
Hershey Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 463,889) | 329,266) | 1,143,987) | 493,262) | 587,998) | |
| Total cash assets | 463,889) | 329,266) | 1,143,987) | 493,262) | 587,998) | |
| Current liabilities | 3,257,154) | 2,493,313) | 1,891,745) | 2,008,793) | 2,418,566) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.14 | 0.13 | 0.60 | 0.25 | 0.24 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.47 | 0.53 | 0.55 | 0.26 | — | |
| Coca-Cola Co. | 0.59 | 0.63 | 0.75 | 0.41 | — | |
| PepsiCo Inc. | 0.20 | 0.23 | 0.41 | 0.28 | — | |
| Philip Morris International Inc. | 0.12 | 0.23 | 0.37 | 0.36 | — | |
| Cash Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.29 | 0.37 | 0.49 | 0.35 | — | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.24 | 0.30 | 0.34 | 0.25 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 463,889 ÷ 3,257,154 = 0.14
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hershey Co. cash ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |