Universal Corporation (UVV)
Quick ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 260,115 | 55,593 | 64,690 | 81,648 | 197,221 |
| Short-term investments | US$ in thousands | — | — | — | — | 84,218 |
| Receivables | US$ in thousands | 633,019 | 530,647 | 414,283 | 389,977 | 368,066 |
| Total current liabilities | US$ in thousands | 750,161 | 711,358 | 441,987 | 518,724 | 293,157 |
| Quick ratio | 1.19 | 0.82 | 1.08 | 0.91 | 2.22 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($260,115K
+ $—K
+ $633,019K)
÷ $750,161K
= 1.19
The Quick Ratio, also known as the Acid-Test Ratio, is a financial metric used to assess a company's short-term liquidity and ability to cover its current liabilities with its most liquid assets.
Analyzing Universal Corporation's Quick Ratio over the past five years, we observe fluctuations in the company's ability to meet its short-term obligations.
As of March 31, 2021, Universal Corporation had a Quick Ratio of 2.22, indicating a strong ability to cover its current liabilities with its quick assets. This suggests that the company had a comfortable buffer of liquid assets to meet its short-term obligations.
However, by March 31, 2022, the Quick Ratio decreased to 0.91, signaling a significant decline in the company's liquidity position. This could indicate potential difficulties in meeting immediate financial obligations with its most liquid assets.
Subsequently, the Quick Ratio improved to 1.08 by March 31, 2023, showing a recovery in Universal Corporation's short-term liquidity position. The increase in the ratio suggests that the company's ability to cover current liabilities with quick assets had strengthened.
In the following years, the Quick Ratio experienced fluctuations, reaching 0.82 by March 31, 2024, indicating a slight decline in liquidity, followed by an increase to 1.19 by March 31, 2025.
Overall, the trend in Universal Corporation's Quick Ratio reflects varying levels of liquidity over the period, with the company showing some volatility in its ability to meet short-term obligations with its liquid assets. It is important for stakeholders to monitor this ratio to assess the company's ongoing liquidity position and financial health.
Peer comparison
Mar 31, 2025