Universal Corporation (UVV)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.26 | 12.05 | 14.08 | 13.91 | 12.59 | 9.21 | 9.06 | 11.78 | 10.69 | 10.20 | 11.49 | 12.02 | 10.67 | 9.28 | 7.99 | 12.60 | 9.02 | 10.83 | 8.27 | 12.82 | |
| DSO | days | 35.56 | 30.29 | 25.93 | 26.24 | 29.00 | 39.63 | 40.27 | 30.99 | 34.14 | 35.77 | 31.76 | 30.36 | 34.21 | 39.33 | 45.66 | 28.97 | 40.49 | 33.69 | 44.15 | 28.48 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.26
= 35.56
The Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO value indicates that the company is collecting payments more quickly, which is generally favorable.
Based on the provided data, Universal Corporation's DSO has shown some fluctuations over the past few quarters. In the most recent quarter, ending March 31, 2024, the DSO stood at 35.56 days, an increase from the previous quarter's 30.29 days. This suggests a potential delay in collecting payments from customers.
Looking at historical trends, Universal Corporation has displayed varying levels of DSO over time. The trend shows some volatility, with fluctuations between low and high DSO values. For example, in the third quarter of 2020, the DSO was particularly high at 45.66 days, indicating a prolonged collection period. However, the company managed to reduce this figure to 25.93 days by the third quarter of 2023, showing an improvement in efficiency.
Overall, Universal Corporation should aim to maintain a lower DSO to ensure efficient cash flow management and timely collection of receivables. Monitoring DSO trends consistently can help the company identify any issues in the accounts receivable process and take corrective actions to improve collection efficiency.
Peer comparison
Mar 31, 2024