Universal Corporation (UVV)
Current ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,156,100 | 2,102,540 | 1,802,890 | 1,748,010 | 1,555,360 |
| Total current liabilities | US$ in thousands | 750,161 | 711,358 | 441,987 | 518,724 | 293,157 |
| Current ratio | 2.87 | 2.96 | 4.08 | 3.37 | 5.31 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,156,100K ÷ $750,161K
= 2.87
The current ratio of Universal Corporation has experienced fluctuations over the past five years. As of March 31, 2021, the current ratio stood at 5.31, indicating a strong liquidity position with more than sufficient current assets to cover its current liabilities. Subsequently, the ratio decreased to 3.37 by March 31, 2022, suggesting a reduction in liquidity. However, there was an improvement in the current ratio to 4.08 by March 31, 2023, reflecting a better ability to meet short-term obligations.
The trend reversed in the following years, with the current ratio declining to 2.96 by March 31, 2024, and further to 2.87 by March 31, 2025. These lower ratios may raise concerns about Universal Corporation's short-term solvency and ability to cover its current liabilities using its current assets. It would be advisable for the company to closely monitor its liquidity position and consider strategies to improve its current ratio in order to meet its short-term obligations effectively.
Peer comparison
Mar 31, 2025