Finance
Financial Statement Analysis
The Hershey Company
The Hershey Company was founded in 1893 by Milton Hershey, a determined pioneer from rural Pennsylvania that developed a method for the commercial production of chocolate. Today, the Hershey Company is the largest manufacturer and distributor of chocolate and non-chocolate confectionary snack goods in North America with products as common as Reese’s, Kit Kat’s, Twizlers, and Jolly Ranchers and many more popular snack goods available nationwide. As a market leader, The Hershey Company Employ's over 13,000 workers and grosses over 4 Billion Dollars in revenue.
I. Liquidity Analysis
Current Ratio RMA
2011 2010 Percent Change Best Average Worst
1.7 1.5 +13.3% 2.1 1.5 1.2 The Hershey Company’s current ratio increased 13.3% from 1.5 to 1.7. The current ratio increased 13.3% because current liabilities saw a decrease of 9.6% from 2010 and current assets increased by 2.1%. When comparing The Hershey Company’s current ratio to the RMA’s average of 1.5, Hershey is 13.3% higher, and 41.7% higher than the RMA’s worst of 1.2. The Hershey Company has a high current ratio as compared to the RMA’s because of the difference in their current assets. Hershey’s current assets account for 46.4% of their total assets whereas the RMA average marks current assets accounting for 51.9% of total assets, 5.5% higher.
Average Collection Period RMA 2011 2010 Percent Change Best Average Worst
24 Days 25 Days -4.0% 13 Days 25 Days 42 Days
The Hershey Company’s average collection period ratio decreased 4% from 25 days to 24 days. It increased because Hershey’s sales increased by 7.2%
The Hershey Company
The Hershey Company was founded in 1893 by Milton Hershey, a determined pioneer from rural Pennsylvania that developed a method for the commercial production of chocolate. Today, the Hershey Company is the largest manufacturer and distributor of chocolate and non-chocolate confectionary snack goods in North America with products as common as Reese’s, Kit Kat’s, Twizlers, and Jolly Ranchers and many more popular snack goods available nationwide. As a market leader, The Hershey Company Employ's over 13,000 workers and grosses over 4 Billion Dollars in revenue.
I. Liquidity Analysis
Current Ratio RMA
2011 2010 Percent Change Best Average Worst
1.7 1.5 +13.3% 2.1 1.5 1.2 The Hershey Company’s current ratio increased 13.3% from 1.5 to 1.7. The current ratio increased 13.3% because current liabilities saw a decrease of 9.6% from 2010 and current assets increased by 2.1%. When comparing The Hershey Company’s current ratio to the RMA’s average of 1.5, Hershey is 13.3% higher, and 41.7% higher than the RMA’s worst of 1.2. The Hershey Company has a high current ratio as compared to the RMA’s because of the difference in their current assets. Hershey’s current assets account for 46.4% of their total assets whereas the RMA average marks current assets accounting for 51.9% of total assets, 5.5% higher.
Average Collection Period RMA 2011 2010 Percent Change Best Average Worst
24 Days 25 Days -4.0% 13 Days 25 Days 42 Days
The Hershey Company’s average collection period ratio decreased 4% from 25 days to 24 days. It increased because Hershey’s sales increased by 7.2%