The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. The Hershey Co's current ratio for the quarter that ended in Dec. 2023 was 0.97.
The Hershey Co has a current ratio of 0.97. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If The Hershey Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for The Hershey Co's Current Ratio or its related term are showing as below:
BSP:HSHY34'
s Current Ratio Range Over the Past 10 Years
Min: 0.8 Med: 0.96 Max: 1.57
Current: 0.97
During the past 13 years, The Hershey Co's highest Current Ratio was 1.57. The lowest was 0.80. And the median was 0.96.
BSP:HSHY34's Current Ratio is ranked worse than 80.06% of 1911
companies
in the Consumer Packaged Goods industry
Industry Median: 1.66
vs BSP:HSHY34: 0.97
The Hershey Co Current Ratio Historical Data
The historical data trend for The Hershey Co's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The Hershey Co's Current Ratio
For the Confectioners subindustry, The Hershey Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hershey Co's Current Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Hershey Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where The Hershey Co's Current Ratio falls into.
The Hershey Co Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
The Hershey Co's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hershey Co (BSP:HSHY34) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
The Hershey Co Current Ratio Related Terms
Thank you for viewing the detailed overview of The Hershey Co's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hershey is a leading confectionery manufacturer in the U.S. (around a $25 billion market), controlling around 45% of the domestic chocolate space (per IRI, as cited by Hershey). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the U.S., including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix, Pirate Brands, and Dot's Pretzels over the past few years.
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