Universal Corporation (UVV)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 55,593 | 64,690 | 81,648 | 197,221 | 107,430 |
| Short-term investments | US$ in thousands | — | — | — | 84,218 | — |
| Receivables | US$ in thousands | 525,262 | 402,073 | 389,977 | 368,066 | 352,194 |
| Total current liabilities | US$ in thousands | 711,358 | 441,987 | 518,724 | 293,157 | 267,399 |
| Quick ratio | 0.82 | 1.06 | 0.91 | 2.22 | 1.72 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($55,593K
+ $—K
+ $525,262K)
÷ $711,358K
= 0.82
The quick ratio of Universal Corporation has shown some fluctuations over the past five years. In 2024, the quick ratio stands at 0.82, which is lower compared to the ratios of the previous three years. This decrease indicates that the company may have a lower ability to meet its short-term obligations using its most liquid assets.
In 2023, the quick ratio was 1.06, indicating an improvement from the previous year. However, in 2022, the quick ratio dropped to 0.91, reflecting a potential liquidity concern as the company may have had difficulty meeting its short-term obligations without relying heavily on inventory.
The quick ratio significantly improved in 2021 to 2.22, which suggests a strong ability to cover short-term liabilities using current assets that are easily convertible to cash. This indicates a positive liquidity position for the company in that year. In 2020, the quick ratio was 1.72, showing a slight decline from the previous year but still demonstrating a good short-term liquidity position.
Overall, fluctuations in Universal Corporation's quick ratio over the past five years indicate varying levels of liquidity risk and ability to meet short-term obligations with available liquid assets. Further analysis of the company's current assets, liabilities, and overall financial health would provide more insight into its liquidity management.
Peer comparison
Mar 31, 2024