Cavco Industries Inc (CVCO)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 352,687 | 271,427 | 244,150 | 322,279 | 241,826 |
| Short-term investments | US$ in thousands | 18,270 | 14,978 | 20,086 | 19,496 | 14,582 |
| Total current liabilities | US$ in thousands | 273,267 | 293,391 | 294,170 | 237,104 | 172,102 |
| Cash ratio | 1.36 | 0.98 | 0.90 | 1.44 | 1.49 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($352,687K
+ $18,270K)
÷ $273,267K
= 1.36
The cash ratio of Cavco Industries Inc has fluctuated over the past five years, ranging from 0.90 to 1.49. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand.
In the most recent year, as of March 31, 2024, the cash ratio has increased to 1.36 from 0.98 in the previous year. This indicates an improvement in Cavco Industries' liquidity position compared to the prior year. However, it is important to note that the cash ratio is still lower than the peak observed in March 31, 2021, when it was 1.44.
Overall, Cavco Industries Inc has maintained a relatively healthy cash ratio over the years, suggesting that the company has been able to effectively manage its short-term liquidity and meet its immediate financial obligations using its available cash reserves.