Universal Corporation (UVV)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 55,593 | 64,690 | 81,648 | 197,221 | 107,430 |
| Short-term investments | US$ in thousands | — | — | — | 84,218 | — |
| Total current liabilities | US$ in thousands | 711,358 | 441,987 | 518,724 | 293,157 | 267,399 |
| Cash ratio | 0.08 | 0.15 | 0.16 | 0.96 | 0.40 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,593K
+ $—K)
÷ $711,358K
= 0.08
The cash ratio of Universal Corporation has shown a declining trend over the past five years. As of March 31, 2024, the cash ratio stands at 0.08, indicating that the company has $0.08 of cash and cash equivalents for every $1 of current liabilities. This represents a significant decrease from the cash ratio of 0.15 in 2023 and 0.16 in 2022.
The sharp drop in the cash ratio from 2022 to 2024 raises concerns about the company's short-term liquidity position. A lower cash ratio suggests that Universal Corporation may have a reduced ability to meet its short-term obligations with its available cash reserves.
It is important for the company to closely monitor its cash management practices and explore strategies to improve its liquidity position to ensure financial stability and meet its short-term financial commitments.
Peer comparison
Mar 31, 2024