Universal Corporation (UVV)

Days of Inventory on Hand (DOH) is a key financial ratio that measures the number of days a company takes to sell its inventory. A lower DOH indicates that the company is efficiently managing its inventory levels, whereas a higher DOH may suggest overstocking or slow sales turnover.

Analyzing Universal Corporation's DOH over the past five years, we observe a fluctuating trend. In the fiscal year ending March 31, 2020, the company had a DOH of 20.30 days, indicating a relatively efficient inventory management. However, in the following years, the DOH increased significantly to 36.10 days in March 31, 2022, before slightly decreasing to 27.68 days in March 31, 2024.

The increase in DOH from 2020 to 2022 suggests that Universal Corporation may have experienced challenges in inventory turnover or faced difficulties in aligning inventory levels with sales demand. However, the decrease in DOH in the most recent year indicates a potential improvement in inventory management efficiency.

It is essential for Universal Corporation to continue monitoring and analyzing its inventory management practices to ensure optimal balance between inventory levels and sales demand in order to improve operational efficiency and profitability in the future.

Peer comparison

Mar 31, 2024