Universal Corporation (UVV)
Quick ratio
| 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 | US$ in thousands | 260,115 | 215,108 | 80,118 | 101,700 | 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 |
| Short-term investments | US$ in thousands | — | — | — | -7,854 | — | — | — | — | — | — | — | 4,345 | — | — | 84,517 | 85,064 | 84,218 | 85,610 | 82,628 | — |
| Receivables | US$ in thousands | 633,019 | 650,599 | 604,248 | 496,932 | 530,647 | 468,415 | 424,333 | 448,850 | 414,283 | 542,570 | 520,585 | 367,626 | 389,977 | 402,041 | 360,554 | 331,947 | 368,066 | 360,873 | 377,139 | 254,989 |
| Total current liabilities | US$ in thousands | 750,161 | 819,315 | 849,422 | 846,056 | 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 |
| 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 |
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 is a financial ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.
Based on the provided data, Universal Corporation's quick ratio fluctuated over the period from June 30, 2020, to March 31, 2025. The quick ratio started at a comfortable level of 1.34 on June 30, 2020, indicating the company had $1.34 in highly liquid assets for every dollar of current liabilities.
The ratio decreased slightly to 1.27 by September 30, 2020, before increasing significantly to 2.22 by March 31, 2021, suggesting improved liquidity and the ability to meet short-term obligations with ease. However, this high ratio was not sustained as it decreased to 0.62 by June 30, 2022, indicating a potential liquidity issue or a change in the company's working capital management.
Subsequently, the quick ratio recovered to 1.19 by March 31, 2025, indicating a somewhat improved ability to meet short-term obligations with liquid assets. Overall, fluctuations in the quick ratio over the period suggest varying levels of liquidity and the company's ability to manage its short-term obligations effectively. It would be important for Universal Corporation to monitor its quick ratio consistently to ensure sufficient liquidity for operational needs.
Peer comparison
Mar 31, 2025