Universal Corporation (UVV)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio 2.87 2.70 2.60 2.60 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
Quick ratio 1.19 1.06 0.81 0.70 0.82 0.87 0.75 0.74 1.08 1.03 0.73 0.62 0.91 0.92 1.37 1.42 2.22 1.56 1.27 1.34
Cash ratio 0.35 0.26 0.09 0.11 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

Universal Corporation's current ratio has shown volatility over the past few years, ranging from a high of 5.51 on June 30, 2020, to a low of 2.49 on September 30, 2022. This ratio measures the company's ability to cover its short-term liabilities with its current assets. Despite fluctuations, the current ratio has generally remained above 2, indicating a strong ability to meet short-term obligations.

The quick ratio, which excludes inventory from current assets, shows a similar trend of fluctuation but generally staying above 1, suggesting that Universal Corporation can meet its short-term obligations without relying on inventory liquidation. The quick ratio has ranged from a low of 0.62 on June 30, 2022, to a high of 2.22 on March 31, 2021.

The cash ratio, which is the most conservative liquidity measure and considers only cash and cash equivalents, has also exhibited fluctuations, with values oscillating between 0.07 and 0.96. Despite this variability, the cash ratio has generally been at acceptable levels, demonstrating the company's ability to cover its short-term liabilities with its cash reserves.

Overall, Universal Corporation has maintained relatively healthy liquidity ratios, indicating a strong ability to meet its short-term financial obligations. However, the company should continue to monitor and manage its liquidity position to ensure continued financial stability.

Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 240.51 234.07 262.01 289.53 283.59 252.23 266.12 263.00 223.68 232.22 275.00 278.23 250.35 243.44 249.23 258.79 215.31 244.27 295.84 240.30

The cash conversion cycle of Universal Corporation has exhibited fluctuations over the reported periods. The cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to March 31, 2021, the company managed to reduce its cash conversion cycle from 240.30 days to 215.31 days, indicating an improvement in efficiently managing its working capital. However, from June 30, 2021, to September 30, 2022, there was an increase in the cycle reaching a peak of 278.23 days, potentially indicating delays in converting sales into cash.

From December 31, 2022, to June 30, 2024, there was a gradual decrease in the cycle, suggesting that the company may have implemented better inventory and credit management practices during this period. The lowest point in the cycle was observed at 223.68 days on March 31, 2023.

Overall, the fluctuations in the cash conversion cycle of Universal Corporation suggest potential variations in inventory management, sales collection policies, and payment terms with suppliers. It is crucial for the company to consistently monitor and optimize its cash conversion cycle to ensure efficient use of its resources and maximize its cash flows.