Universal Corporation (UVV)
Quick ratio
| 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 | US$ in thousands | 55,593 | 74,102 | 99,683 | 80,518 | 64,690 | 71,283 | 58,855 | 86,566 | 81,648 | 99,305 | 100,682 | 84,688 | 197,221 | 95,405 | 57,084 | 100,015 | 107,430 | 64,734 | 53,173 | 167,996 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 84,517 | 85,064 | 84,218 | 85,610 | 82,628 | — | — | — | — | — |
| Receivables | US$ in thousands | 525,262 | 435,306 | 368,924 | 375,564 | 402,073 | 542,570 | 520,585 | 367,626 | 389,977 | 402,041 | 360,554 | 331,947 | 368,066 | 360,873 | 377,139 | 254,989 | 352,194 | 296,729 | 420,637 | 281,293 |
| Total current liabilities | US$ in thousands | 711,358 | 624,874 | 701,145 | 717,872 | 441,987 | 598,227 | 798,447 | 742,012 | 518,724 | 547,785 | 399,409 | 353,168 | 293,157 | 346,346 | 408,164 | 265,600 | 267,399 | 270,627 | 352,444 | 290,942 |
| 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 |
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 fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio has generally been above 1.0, indicating that Universal Corporation has had an adequate level of liquid assets to cover its current liabilities. However, there have been periods where the quick ratio fell below 1.0, which may raise concerns about the company's ability to meet its short-term obligations without relying on additional resources.
The trend shows that the quick ratio has been volatile, with some quarters showing a healthier quick ratio above 1.0, while others have dipped below this threshold. This variability suggests fluctuations in the company's liquidity position over the periods analyzed.
It would be important for Universal Corporation to closely monitor its quick ratio and strive to maintain a level above 1.0 consistently to ensure that it can effectively meet its short-term financial obligations without facing liquidity constraints. Further analysis of the components of the quick ratio, such as the level of current assets and liabilities, would provide additional insights into the company's liquidity position.
Peer comparison
Mar 31, 2024