Universal Corporation (UVV)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,102,540 | 1,802,890 | 1,748,010 | 1,555,360 | 1,479,620 |
| Total current liabilities | US$ in thousands | 711,358 | 441,987 | 518,724 | 293,157 | 267,399 |
| Current ratio | 2.96 | 4.08 | 3.37 | 5.31 | 5.53 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,102,540K ÷ $711,358K
= 2.96
The current ratio of Universal Corporation has exhibited a declining trend over the past five years. As of March 31, 2024, the current ratio stands at 2.96, indicating a decrease from 4.08 in the previous year. This decline suggests that the company's short-term liquidity position has weakened compared to the prior year.
Despite the decrease, the current ratio of 2.96 is still above the generally recommended benchmark of 2.0, indicating that Universal Corporation has a relatively strong ability to meet its short-term obligations using its current assets. However, the significant drop from the previous year may warrant further investigation into the company's working capital management and liquidity risk.
It is essential for Universal Corporation to closely monitor its current ratio and implement strategies to maintain a healthy balance between current assets and liabilities to ensure its ability to meet short-term financial obligations efficiently. A sustained focus on managing working capital effectively will be crucial for the company to uphold its financial stability and operational resilience in the future.
Peer comparison
Mar 31, 2024