Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Hershey Co., consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
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)
Inventories	1,173,119)	988,511)	964,207)	815,251)	784,879)
Prepaid expenses	143,888)	129,287)	95,669)	84,058)	68,490)
Other current assets	128,307)	127,678)	158,809)	156,022)	203,669)
Prepaid expenses and other	272,195)	256,965)	254,478)	240,080)	272,159)
Current assets	2,620,406)	2,246,206)	2,977,905)	2,117,102)	2,239,181)
Property, plant and equipment, net	2,769,702)	2,586,187)	2,285,255)	2,153,139)	2,130,294)
Goodwill	2,606,956)	2,633,174)	1,988,215)	1,985,955)	1,801,103)
Other intangibles	1,966,269)	2,037,588)	1,295,214)	1,341,166)	1,278,292)
Pension	53,495)	71,618)	8,308)	—)	—)
Capitalized software, net	320,034)	260,656)	187,673)	153,842)	126,379)
Operating lease ROU assets	326,472)	351,712)	224,268)	220,678)	—)
Investments in unconsolidated affiliates	133,029)	93,089)	52,351)	—)	—)
Other non-current assets	111,959)	91,128)	83,287)	137,480)	126,605)
Other non-current assets	944,989)	868,203)	555,887)	512,000)	252,984)
Deferred income taxes	40,498)	40,873)	29,369)	31,033)	1,166)
Non-current assets	8,328,414)	8,166,025)	6,153,940)	6,023,293)	5,463,839)
Total assets	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)

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).

The financial data reveals several notable trends across the reported periods.

Cash and Cash Equivalents: After a decline from 2018 to 2019, cash levels increased sharply in 2020, followed by a significant decrease in 2021, and a moderate recovery in 2022. This indicates fluctuations in liquidity management perhaps due to operational or investing activities.
Accounts Receivable, Trade, Net: There is a consistent upward trend in accounts receivable from 2018 through 2022, suggesting increased sales or credit extension to customers, reflecting growth or changes in credit policies.
Inventories: Inventories steadily increased each year, most notably between 2021 and 2022. This may indicate an accumulation of stock in anticipation of increased demand or slower inventory turnover.
Prepaid Expenses: Prepaid expenses rose gradually over the years, showing management’s tendencies toward greater prepayment of expenses or advancing payments for services.
Other Current Assets and Prepaid Expenses and Other: Other current assets showed a decline overall, whereas the combined figure for prepaid expenses and other current assets remained relatively stable with a slight increase, implying adjustments within the composition of current assets.
Total Current Assets: Current assets experienced a peak in 2020, decreased markedly in 2021, and rebounded in 2022, largely influenced by the movements in cash and receivables.
Property, Plant, and Equipment, Net: This asset category showed a consistent increase over the years, reflecting ongoing capital expenditure and investment in fixed assets.
Goodwill: Goodwill increased substantially in 2021 before a slight decrease in 2022, reflecting acquisition activity or changes in impairment assessments during this period.
Other Intangibles: Intangible assets increased significantly in 2021, then slightly declined in 2022, indicating changes related to acquisitions, amortization, or write-downs.
Pension: Pension-related assets or liabilities appeared starting 2020, with a rise in 2021 followed by a decrease in 2022, suggesting adjustments in pension obligations or asset valuations.
Capitalized Software, Net: There is a consistent upward trend in capitalized software, indicating ongoing investment in technology and software development.
Operating Lease Right-of-Use (ROU) Assets: These assets increased significantly after their initial appearance in 2019, peaking in 2021 and decreasing slightly in 2022, reflecting the adoption and subsequent management of lease obligations.
Investments in Unconsolidated Affiliates: Started appearing in 2020 with notable increases through 2022, implying growing investments in joint ventures or associates.
Other Non-Current Assets: Two line items labelled as other non-current assets show contrasting trends. One fluctuated downward and upward slightly, whereas the other exhibited strong growth since 2019, suggesting changes in asset classification or acquisitions.
Deferred Income Taxes: Deferred tax assets/liabilities increased notably from 2018 to 2019 and remained relatively stable afterwards, indicating tax-related timing differences that stabilized in recent years.
Total Non-Current Assets: Non-current assets increased steadily, with a sharp rise in 2021, driven by increases in goodwill, intangibles, property, plant, equipment, and other non-current items, reflecting significant long-term investments and acquisitions.
Total Assets: The overall asset base expanded consistently each year, with the largest jumps occurring in 2020 and 2021, reflecting growth through asset accumulation and investment activities.

Assets: Selected Items

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Current Assets: Selected Items

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Hershey Co. (NYSE:HSY)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items