Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Current ratio | ||||||
Quick ratio | ||||||
Cash ratio |
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).
- Current ratio
- The current ratio exhibited a fluctuating trend over the five-year period. Starting at 0.93 in 2018, it increased to 1.05 in 2019 and peaked at 1.57 in 2020, indicating a strengthening in short-term liquidity during that period. However, the ratio experienced a significant decline in the following years, falling to 0.9 in 2021 and further to 0.8 in 2022, suggesting a weakening ability to cover current liabilities with current assets towards the end of the period.
- Quick ratio
- The quick ratio followed a similar pattern to the current ratio but at generally lower levels, reflecting more conservative liquidity measures excluding inventory. It rose from 0.49 in 2018 to 0.53 in 2019, then sharply increased to 0.93 in 2020, indicating improved liquid asset coverage of current liabilities during that year. Subsequently, it decreased notably to 0.4 in 2021 and further to 0.36 in 2022, implying reduced liquidity and potentially greater reliance on inventory to meet short-term obligations in later years.
- Cash ratio
- The cash ratio also showed an increase from 0.24 in 2018 to 0.25 in 2019 and then a marked jump to 0.6 in 2020, highlighting a peak in the company’s most liquid asset position relative to current liabilities. However, this was followed by a sharp drop to 0.13 in 2021 and a slight rise to 0.14 in 2022, reflecting a significant decline in immediate liquidity availability in the last two years, despite a marginal recovery in the final year.
Current Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Current ratio1 | ||||||
Benchmarks | ||||||
Current Ratio, Competitors2 | ||||||
Coca-Cola Co. | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Current Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Current Ratio, Industry | ||||||
Consumer Staples |
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 Click competitor name to see calculations.
- Current Assets
- Current assets experienced fluctuations over the analyzed periods. Initially, there was a slight decrease from approximately 2,239,181 thousand US dollars in 2018 to 2,117,102 thousand in 2019. This was followed by a significant increase in 2020, reaching nearly 2,977,905 thousand US dollars, before decreasing again in 2021 to approximately 2,246,206 thousand. By 2022, current assets increased once more to about 2,620,406 thousand US dollars.
- Current Liabilities
- Current liabilities showed an initial decline from 2,418,566 thousand US dollars in 2018 to 2,008,793 thousand in 2019, continuing to decrease in 2020 to 1,891,745 thousand. However, there was a marked increase in 2021, rising to 2,493,313 thousand, and this upward trend accelerated in 2022, reaching 3,257,154 thousand US dollars.
- Current Ratio
- The current ratio improved from 0.93 in 2018 to 1.05 in 2019, indicating a better short-term liquidity position during that interval. The ratio further increased to 1.57 in 2020, reflecting a strong liquidity position. Despite this improvement, the ratio sharply declined to 0.9 in 2021 and dropped further to 0.8 in 2022, signaling a weakening liquidity scenario and potential challenges in covering short-term obligations with available current assets.
- Overall Trends and Insights
- Throughout the period, current assets showed variability but ended at a higher level in 2022 compared to 2018. In contrast, current liabilities decreased initially but increased significantly in the last two years, surpassing the levels observed in earlier years. The current ratio reflects these movements, with notable improvement until 2020 followed by a decline below 1.0, which may indicate potential liquidity pressures. The combination of rising liabilities and declining liquidity ratios toward the end of the period suggests attention should be given to the company's ability to meet short-term financial commitments going forward.
Quick Ratio
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 | ||||||
Accounts receivable, trade, net | ||||||
Total quick assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Quick ratio1 | ||||||
Benchmarks | ||||||
Quick Ratio, Competitors2 | ||||||
Coca-Cola Co. | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Quick Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Quick Ratio, Industry | ||||||
Consumer Staples |
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
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The value of total quick assets exhibited considerable fluctuations over the five-year period. Starting at approximately 1.18 billion USD at the end of 2018, it decreased slightly in 2019 to about 1.06 billion USD. In 2020, there was a substantial increase, reaching nearly 1.76 billion USD. However, the subsequent years saw a decline once again, with values falling to roughly 1.00 billion USD in 2021 and then moderately rising to approximately 1.18 billion USD in 2022.
- Current Liabilities
- Current liabilities demonstrated an overall upward trend. Beginning at around 2.42 billion USD in 2018, they decreased in 2019 and 2020 to approximately 2.01 billion USD and 1.89 billion USD, respectively. However, from 2020 onwards, there was a marked increase in liabilities, reaching about 2.49 billion USD in 2021 and further rising to roughly 3.26 billion USD in 2022.
- Quick Ratio
- The quick ratio, reflecting liquidity, showed a varied pattern. It started below 0.5 in 2018 at 0.49 and increased marginally to 0.53 in 2019. A significant improvement was observed in 2020, with the ratio rising to 0.93, indicating better short-term financial stability. However, this was followed by notable declines in the subsequent years, with ratios falling to 0.40 in 2021 and further to 0.36 in 2022, suggesting reduced liquidity and potentially higher risk in meeting short-term obligations.
- Summary
- The data indicate fluctuating liquidity levels over the examined period. The peak in total quick assets and quick ratio in 2020 reflects a temporary strengthening in liquid resources relative to liabilities. Conversely, the decrease in quick ratio post-2020, despite a moderate rebound in quick assets in 2022, along with a significant increase in current liabilities, suggests a deterioration in the短-term financial position in the last two years. This trend points to increased pressure on immediate liquidity and a potential need for enhanced working capital management.
Cash Ratio
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 | ||||||
Total cash assets | ||||||
Current liabilities | ||||||
Liquidity Ratio | ||||||
Cash ratio1 | ||||||
Benchmarks | ||||||
Cash Ratio, Competitors2 | ||||||
Coca-Cola Co. | ||||||
Mondelēz International Inc. | ||||||
PepsiCo Inc. | ||||||
Philip Morris International Inc. | ||||||
Cash Ratio, Sector | ||||||
Food, Beverage & Tobacco | ||||||
Cash Ratio, Industry | ||||||
Consumer Staples |
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
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2022. Total cash assets exhibited significant fluctuation, with an initial decrease from approximately $588 million in 2018 to about $493 million in 2019. This was followed by a sharp increase to over $1.1 billion in 2020, representing a substantial liquidity boost. However, the subsequent years saw a marked decline, with cash assets dropping to roughly $329 million in 2021 and then recovering somewhat to about $464 million in 2022.
Current liabilities showed a more consistent upward trajectory throughout the period. Starting at roughly $2.42 billion in 2018, these liabilities decreased somewhat in 2019 and 2020 to approximately $2.01 billion and $1.89 billion respectively. Nevertheless, from 2020 onwards, current liabilities increased sharply, reaching an estimated $2.49 billion in 2021 before surging to over $3.25 billion in 2022. This upward trend indicates increasing short-term financial obligations.
The cash ratio, which measures immediate liquidity by comparing cash assets to current liabilities, displayed considerable volatility. It remained relatively stable at around 0.24-0.25 in 2018 and 2019. The ratio then peaked at 0.60 in 2020, consistent with the significant rise in total cash assets at that time, indicating a stronger liquidity position. However, the cash ratio dropped dramatically to 0.13 in 2021 and showed only a slight increase to 0.14 in 2022, suggesting a weakened ability to cover short-term liabilities strictly with cash.
Overall, the period reflects an environment of fluctuating liquidity. The substantial increase in cash assets and improved cash ratio in 2020 could point to strategic cash accumulation or other favorable cash inflows during that year. Conversely, the notable decrease in cash assets and the sharp increase in current liabilities after 2020 contribute to a diminished liquidity profile by 2022, potentially signaling increased reliance on short-term financing or greater operational cash demands.
- Total Cash Assets
- Strong volatility with a peak in 2020, followed by a decline and partial recovery but remaining below the peak.
- Current Liabilities
- Downward trend until 2020, then a steep and sustained rise through 2022.
- Cash Ratio
- Moderate stability initially, sharp increase in 2020, followed by a marked decrease indicating reduced cash coverage of liabilities.