Universal Corporation (UVV)

Liquidity ratios

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 2.96 3.22 2.92 2.86 4.08 3.26 2.49 2.61 3.37 3.19 4.15 4.54 5.31 4.63 3.91 5.51 5.53 5.83 4.68 5.51
Quick ratio 0.82 0.82 0.67 0.64 1.06 1.03 0.73 0.61 0.91 0.92 1.37 1.42 2.22 1.56 1.27 1.34 1.72 1.34 1.34 1.54
Cash ratio 0.08 0.12 0.14 0.11 0.15 0.12 0.07 0.12 0.16 0.18 0.46 0.48 0.96 0.52 0.34 0.38 0.40 0.24 0.15 0.58

Over the past five years, Universal Corporation's current ratio has shown fluctuation but generally remains above the industry average, reflecting strong short-term liquidity and the company's ability to meet its current obligations. However, the quick ratio has also fluctuated, indicating some volatility in the company's ability to quickly cover its short-term liabilities with its most liquid assets.

The cash ratio has shown significant variability, suggesting that Universal Corporation may not consistently have sufficient cash on hand to cover its current liabilities. This could potentially indicate a risk in meeting immediate payment obligations.

Overall, Universal Corporation's liquidity ratios demonstrate a mix of strengths and areas for improvement in managing its short-term financial obligations. Monitoring these ratios over time can reveal trends in the company's liquidity position and help assess its financial stability.

Additional liquidity measure

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 63.12 59.14 57.34 55.07 58.90 72.41 78.72 66.57 69.28 66.18 61.69 57.37 62.76 67.19 70.10 50.04 60.79 51.05 62.58 42.76

The cash conversion cycle of Universal Corporation has shown some fluctuations over the periods under consideration. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory into cash flow from sales.

Looking at the data provided, we can see that the cash conversion cycle has ranged from a low of 42.76 days to a high of 78.72 days over the periods analyzed. A lower number of days indicates a more efficient use of working capital, while a higher number of days suggests that the company is taking longer to convert its investments into cash.

The trend in the cash conversion cycle for Universal Corporation appears to be somewhat erratic, with fluctuations observed from period to period. It is worth noting that a lower cash conversion cycle is generally preferred as it indicates that the company is able to generate cash more quickly from its operations.

In analyzing the data, it is important to consider the factors that may have influenced the variations in the cash conversion cycle, such as changes in sales volume, inventory levels, and payment terms with customers and suppliers. By closely monitoring and managing the cash conversion cycle, Universal Corporation can strive to improve its working capital efficiency and overall financial health.