PART 5: SPECIAL TOPICS
FIGURE 16.2 QUARTERLY SALES AND TOTAL CURRENT ASSETS FOR THE HERSHEY COMPANY
(1997–SECOND QUARTER OF 2015)
Panel A shows the seasonal pattern in Hershey’s sales, and Panel B shows a similar pattern for current assets. The
straight lines represent different levels of long-term financing. The purple line represents an aggressive strategy, in the
sense that Hershey does not secure enough long-term financing to cover the permanent component of the growth in current
assets. The blue line is a conservative strategy, because Hershey has sufficient long-term financing to pay for both the
permanent upward trend and the seasonal fluctuations in assets. The red line is a matching strategy, a middle-of-the-road
approach in which Hershey finances permanent assets (fixed assets plus the permanent component of current assets) with
long-term funding sources, and finances temporary or seasonal asset requirements with short-term debt.Quarterly salesHershey's current assets
Matching strategy
Conservative strategy
Aggressive strategyPanel A: Quarterly salesPanel B: Financial strategies available to HersheyQuarterly sales ($ millions)Quarterly total assets ($ in millions)0
500
1,000
1,500
2,000
2,500
30/03/1997
30/09/1997
31/03/1998
30/09/1998
31/03/1999
30/09/1999
30/06/2000
30/03/2001
28/09/2001
28/06/2002
31/03/2003
30/09/2003
30/06/2004
31/03/2005
30/09/2005
30/06/2006
30/03/2007
28/09/2007
31/03/2008
30/09/2008
31/03/2009
30/09/2009
31/03/2010
30/09/2010
31/03/2011
30/09/2011
30/03/2012
28/09/2012
28/03/2013
30/09/2013
31/03/2014
30/09/2014
30/06/201530/03/1997
30/09/1997
31/03/1998
30/09/1998
31/03/1999
30/09/1999
30/06/2000
30/03/2001
28/09/2001
28/06/2002
31/03/2003
30/09/2003
30/06/2004
31/03/2005
30/09/2005
30/06/2006
30/03/2007
28/09/2007
31/03/2008
30/09/2008
31/03/2009
30/09/2009
31/03/2010
30/09/2010
31/03/2011
30/09/2011
30/03/2012
28/09/2012
28/03/2013
30/09/2013
31/03/2014
30/09/2014
30/06/20150
500
1,000
1,500
2,000
2,500
3,000
Source: Bloomberg