Universal Corporation (UVV)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 13.13 | 12.64 | 11.61 | 12.56 | 11.86 | 11.13 | 9.49 | 10.25 | 10.10 | 12.00 | 12.20 | 13.52 | 12.79 | 13.10 | 14.94 | 17.32 | 17.98 | 21.02 | 19.81 | 25.56 | |
| DOH | days | 27.79 | 28.87 | 31.43 | 29.05 | 30.79 | 32.79 | 38.45 | 35.60 | 36.12 | 30.41 | 29.93 | 27.01 | 28.55 | 27.86 | 24.44 | 21.07 | 20.30 | 17.36 | 18.43 | 14.28 |
March 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.13
= 27.79
Days of Inventory on Hand (DOH) is a crucial financial ratio that measures the average number of days a company holds its inventory before selling it. A lower DOH indicates that inventory is being managed efficiently, leading to potentially lower holding costs and quicker inventory turnover.
Looking at Universal Corporation's trend in DOH over the past few quarters, we observe fluctuations in the ratio. In the most recent quarter, for March 31, 2024, the DOH stands at 27.79 days, a slight decrease from the previous quarter's 28.87 days. This decrease suggests that the company may have improved its inventory management efficiency during this period.
Comparing the current DOH to historical data, we see that over the past five quarters, the DOH has ranged between 24.44 days and 31.43 days. This indicates some variability in Universal Corporation's inventory management practices.
Furthermore, when we assess the trend over a more extended period, we notice a general decreasing pattern in the DOH ratio, starting from 38.45 days on Sep 30, 2022, to the current 27.79 days on Mar 31, 2024. This downward trend signifies potential improvements in inventory management efficiency over time.
In conclusion, Universal Corporation's days of inventory on hand have shown fluctuations in the short term, but there seems to be a gradual improvement in inventory management efficiency over the long term. It would be beneficial for the company to continue monitoring and optimizing its inventory levels to maintain healthy liquidity and profitability.
Peer comparison
Mar 31, 2024