Current Ratio
since 2005
Calculation
Hershey Co., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.80 | = | 2,620,406) | ÷ | 3,257,154) |
| Dec 31, 2021 | 0.90 | = | 2,246,206) | ÷ | 2,493,313) |
| Dec 31, 2020 | 1.57 | = | 2,977,905) | ÷ | 1,891,745) |
| Dec 31, 2019 | 1.05 | = | 2,117,102) | ÷ | 2,008,793) |
| Dec 31, 2018 | 0.93 | = | 2,239,181) | ÷ | 2,418,566) |
| Dec 31, 2017 | 0.96 | = | 2,001,910) | ÷ | 2,076,543) |
| Dec 31, 2016 | 0.95 | = | 1,816,778) | ÷ | 1,909,443) |
| Dec 31, 2015 | 0.83 | = | 1,848,598) | ÷ | 2,217,912) |
| Dec 31, 2014 | 1.16 | = | 2,247,047) | ÷ | 1,935,647) |
| Dec 31, 2013 | 1.77 | = | 2,487,334) | ÷ | 1,408,022) |
| Dec 31, 2012 | 1.44 | = | 2,113,485) | ÷ | 1,471,110) |
| Dec 31, 2011 | 1.74 | = | 2,046,558) | ÷ | 1,173,775) |
| Dec 31, 2010 | 1.54 | = | 2,005,217) | ÷ | 1,298,845) |
| Dec 31, 2009 | 1.52 | = | 1,385,434) | ÷ | 910,628) |
| Dec 31, 2008 | 1.06 | = | 1,344,945) | ÷ | 1,270,212) |
| Dec 31, 2007 | 0.88 | = | 1,426,574) | ÷ | 1,618,770) |
| Dec 31, 2006 | 0.98 | = | 1,417,812) | ÷ | 1,453,538) |
| Dec 31, 2005 | 0.93 | = | 1,408,940) | ÷ | 1,518,223) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The liquidity position of the organization has exhibited significant volatility between 2005 and 2022, characterized by alternating periods of working capital expansion and contraction. The current ratio has fluctuated from a low of 0.80 to a peak of 1.77, indicating shifting strategies or operational requirements regarding short-term asset management and liability obligations.
- Liquidity Expansion Phase (2008–2013)
- Following a period of marginal liquidity between 2005 and 2007, a sustained upward trend in the current ratio is observed starting in 2008. The ratio climbed from 1.06 to a period high of 1.77 by 2013. This improvement was driven by a combination of substantial growth in current assets, which reached 2.48 billion USD, and a significant reduction in current liabilities during 2009, which dropped to 910.6 million USD.
- Liquidity Compression Phase (2014–2018)
- A marked decline in liquidity occurred starting in 2014, with the current ratio falling to 1.16 and reaching a local minimum of 0.83 in 2015. For the remainder of this period, the ratio largely remained below the 1.0 threshold, fluctuating between 0.93 and 0.96. This phase was characterized by a general increase in current liabilities, which peaked at 2.41 billion USD in 2018, outpacing the growth of current assets.
- Recent Volatility and Current Status (2019–2022)
- The most recent data indicates extreme volatility. A sharp increase in the current ratio to 1.57 was recorded in 2020, coinciding with a surge in current assets to 2.97 billion USD. However, this trend reversed abruptly; by December 31, 2022, the current ratio declined to 0.80, the lowest point in the analyzed period. This decline is attributed to a significant rise in current liabilities, which reached a series high of 3.25 billion USD, while current assets grew at a slower pace to 2.62 billion USD.
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Comparison to Competitors
Hershey Co., current ratio, long-term trends, comparison to competitors
| Hershey Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.80 | 1.15 | 0.60 | 0.80 | 0.72 |
| Dec 31, 2021 | 0.90 | 1.13 | 0.74 | 0.83 | 0.92 |
| Dec 31, 2020 | 1.57 | 1.32 | 0.66 | 0.98 | 1.10 |
| Dec 31, 2019 | 1.05 | 0.76 | 0.50 | 0.86 | 1.09 |
| Dec 31, 2018 | 0.93 | 1.05 | 0.45 | 0.99 | 1.13 |
| Dec 31, 2017 | 0.96 | 1.34 | 0.48 | 1.51 | 1.35 |
| Dec 31, 2016 | 0.95 | 1.28 | 0.59 | 1.28 | 1.07 |
| Dec 31, 2015 | 0.83 | 1.24 | 0.82 | 1.31 | 1.03 |
| Dec 31, 2014 | 1.16 | 1.02 | 0.84 | 1.14 | 1.02 |
| Dec 31, 2013 | 1.77 | 1.13 | 0.92 | 1.24 | 0.99 |
| Dec 31, 2012 | 1.44 | 1.09 | 1.05 | 1.10 | 0.97 |
| Dec 31, 2011 | 1.74 | 1.05 | 0.88 | 0.96 | 1.00 |
| Dec 31, 2010 | 1.54 | 1.17 | 1.04 | 1.11 | 1.07 |
| Dec 31, 2009 | 1.52 | 1.28 | 1.08 | 1.44 | 1.31 |
| Dec 31, 2008 | 1.06 | 0.94 | 1.03 | 1.23 | 1.47 |
| Dec 31, 2007 | 0.88 | 0.92 | 0.63 | 1.31 | — |
| Dec 31, 2006 | 0.98 | 0.95 | 0.79 | 1.33 | — |
| Dec 31, 2005 | 0.93 | 1.04 | 0.93 | 1.11 | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Hershey Co., current ratio, long-term trends, comparison to sector (food, beverage & tobacco)
| Hershey Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2022 | 0.80 | 0.82 |
| Dec 31, 2021 | 0.90 | 0.91 |
| Dec 31, 2020 | 1.57 | 1.01 |
| Dec 31, 2019 | 1.05 | 0.81 |
| Dec 31, 2018 | 0.93 | 0.93 |
| Dec 31, 2017 | 0.96 | 1.22 |
| Dec 31, 2016 | 0.95 | 1.11 |
| Dec 31, 2015 | 0.83 | 1.15 |
| Dec 31, 2014 | 1.16 | 1.02 |
| Dec 31, 2013 | 1.77 | 1.08 |
| Dec 31, 2012 | 1.44 | 1.06 |
| Dec 31, 2011 | 1.74 | 0.98 |
| Dec 31, 2010 | 1.54 | 1.10 |
| Dec 31, 2009 | 1.52 | 1.27 |
| Dec 31, 2008 | 1.06 | 1.15 |
| Dec 31, 2007 | 0.88 | 0.87 |
| Dec 31, 2006 | 0.98 | 0.98 |
| Dec 31, 2005 | 0.93 | 1.03 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Hershey Co., current ratio, long-term trends, comparison to industry (consumer staples)
| Hershey Co. | Consumer Staples | |
|---|---|---|
| Dec 31, 2022 | 0.80 | 0.87 |
| Dec 31, 2021 | 0.90 | 0.93 |
| Dec 31, 2020 | 1.57 | 0.92 |
| Dec 31, 2019 | 1.05 | 0.82 |
| Dec 31, 2018 | 0.93 | 0.87 |
| Dec 31, 2017 | 0.96 | 1.02 |
| Dec 31, 2016 | 0.95 | 1.04 |
| Dec 31, 2015 | 0.83 | 1.06 |
| Dec 31, 2014 | 1.16 | 0.97 |
| Dec 31, 2013 | 1.77 | 0.97 |
| Dec 31, 2012 | 1.44 | 0.99 |
| Dec 31, 2011 | 1.74 | 0.97 |
| Dec 31, 2010 | 1.54 | 1.01 |
| Dec 31, 2009 | 1.52 | 1.03 |
| Dec 31, 2008 | 1.06 | 0.98 |
| Dec 31, 2007 | 0.88 | 0.91 |
| Dec 31, 2006 | 0.98 | 1.04 |
| Dec 31, 2005 | 0.93 | 0.99 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).