Universal Corporation (UVV)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 260,115 | 55,593 | 64,690 | 81,648 | 197,221 |
| Short-term investments | US$ in thousands | — | — | — | — | 84,218 |
| Total current liabilities | US$ in thousands | 750,161 | 711,358 | 441,987 | 518,724 | 293,157 |
| Cash ratio | 0.35 | 0.08 | 0.15 | 0.16 | 0.96 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($260,115K
+ $—K)
÷ $750,161K
= 0.35
The cash ratio of Universal Corporation has shown some fluctuation over the past five years. It stood at 0.96 on March 31, 2021, indicating that the company had $0.96 in cash and cash equivalents for every $1 of its current liabilities at that time. However, there was a significant decrease in the cash ratio to 0.16 on March 31, 2022. This may suggest a potential liquidity issue or a change in the company's cash management practices.
The trend continued with the cash ratio further declining to 0.15 on March 31, 2023 and 0.08 on March 31, 2024, which could raise concerns about the company's ability to meet its short-term obligations solely with its available cash resources.
Fortunately, there was an improvement in the cash ratio on March 31, 2025, where it increased to 0.35. This indicates that the company had increased its cash and cash equivalents relative to its current liabilities, potentially enhancing its liquidity position.
In conclusion, while the cash ratio of Universal Corporation has fluctuated in recent years, the latest uptick in the ratio suggests a positive development in the company's liquidity position. However, it is important for stakeholders to monitor future trends to ensure the company maintains a healthy cash position to meet its short-term obligations.
Peer comparison
Mar 31, 2025