Cavco Industries Inc (CVCO)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 77,123 | 106,366 | 117,063 | 89,750 | 43,566 |
| Total current liabilities | US$ in thousands | 273,267 | 293,391 | 294,170 | 237,104 | 172,102 |
| Quick ratio | 1.64 | 1.34 | 1.30 | 1.82 | 1.74 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($352,687K
+ $18,270K
+ $77,123K)
÷ $273,267K
= 1.64
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.
Cavco Industries Inc's quick ratio has shown some fluctuations over the past five years. In 2024, the quick ratio improved to 1.64 from 1.34 in 2023, indicating a better ability to meet short-term obligations using liquid assets. This increase suggests an enhanced liquidity position in the most recent fiscal year.
Comparing to previous years, the quick ratio in 2024 is higher than in 2022 (1.30) but lower than in 2021 (1.82) and 2020 (1.74). While the quick ratio has shown some variability, it generally indicates that Cavco Industries Inc has maintained a healthy level of liquidity over the years, ensuring the company's ability to cover its short-term liabilities with its liquid assets.
Overall, the upward trend in the quick ratio from 2022 to 2024 suggests an improvement in liquidity management for Cavco Industries Inc, potentially enhancing its ability to meet short-term obligations effectively.