Common-Size Balance Sheet: Assets
Quarterly Data
Hershey Co., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01).
The asset composition of the entity demonstrates a strategic shift over the observed period, characterized by a general transition from current assets toward a higher concentration of non-current assets. While current assets fluctuated between approximately 21% and 35% of total assets, non-current assets trended upward from roughly 69% in early 2018 to approximately 75% by mid-2023.
- Liquidity and Cash Management
- Cash and cash equivalents exhibit significant volatility. A pronounced increase occurred during 2020, peaking at 13.08% in June 2020, suggesting a strategic buildup of liquidity during the early stages of the global pandemic. Following this peak, cash levels declined sharply, stabilizing between 3% and 4% of total assets from 2022 through July 2023.
- Working Capital Components
- Inventories remained relatively stable as a percentage of total assets, generally fluctuating between 9% and 12%, though a slight upward trend is observed toward the end of the period, reaching 12.02% in July 2023. Accounts receivable show a cyclical pattern, frequently peaking around 10% of total assets during specific quarters, which likely reflects seasonal sales cycles.
- Fixed and Long-term Assets
- Property, plant, and equipment (PP&E) experienced a gradual relative decline, moving from 28.90% in April 2018 to 26.16% in July 2023. This suggests that the growth in the total asset base has outpaced the expansion of physical infrastructure.
- Intangible Assets and Goodwill
- Goodwill remained a consistent component of the balance sheet, typically ranging between 21% and 25%. Other intangibles showed a more distinct growth trend, increasing from approximately 14% in 2018 to a peak of 19.57% in December 2021, before settling at 16.73% in July 2023. This indicates a period of increased capitalization of intangible assets or strategic acquisitions.
- Other Non-Current Assets
- A steady and notable increase is observed in other non-current assets, which grew from 3.57% in April 2018 to 8.34% in July 2023. This represents a more than twofold increase in the relative weight of these assets within the overall balance sheet structure.
Overall, the asset profile indicates a transition toward a more intangible-heavy balance sheet. The temporary surge in liquidity observed in 2020 has since normalized, and the increasing proportion of non-current assets, specifically intangibles and other long-term assets, suggests a shift in the entity's capital allocation and asset structure over the five-year horizon.
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