Cavco Industries Inc (CVCO)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 851,799 | 804,579 | 744,117 | 651,799 | 516,185 |
| Total current liabilities | US$ in thousands | 273,267 | 293,391 | 294,170 | 237,104 | 172,102 |
| Current ratio | 3.12 | 2.74 | 2.53 | 2.75 | 3.00 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $851,799K ÷ $273,267K
= 3.12
The current ratio of Cavco Industries Inc has shown a fluctuating trend over the past five years. As of March 31, 2024, the current ratio stands at 3.12, indicating that the company has $3.12 in current assets for every $1 in current liabilities. This represents an improvement compared to the previous year and is at the highest level in the past five years.
A current ratio above 1 suggests that the company is able to cover its short-term obligations with its current assets. A higher current ratio is generally considered favorable as it demonstrates a strong ability to meet short-term liabilities.
The increasing trend in the current ratio from 2022 to 2024 indicates that Cavco Industries has been effectively managing its liquidity position and strengthening its financial health over the years. However, it is essential to assess other financial metrics alongside the current ratio to obtain a more comprehensive understanding of the company's overall financial performance.