Universal Corporation (UVV)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,381,540 | 5,054,850 | 4,159,990 | 3,928,210 | 3,761,740 |
| Property, plant and equipment | US$ in thousands | 365,880 | 351,162 | 345,118 | 349,510 | 315,153 |
| Fixed asset turnover | 14.71 | 14.39 | 12.05 | 11.24 | 11.94 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,381,540K ÷ $365,880K
= 14.71
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. The trend of Universal Corporation's fixed asset turnover over the past five years shows a consistent increase, reaching 14.71 in March 2024 from 11.94 in March 2020. This indicates that the company has been able to generate more revenue per dollar invested in fixed assets over the years.
A higher fixed asset turnover ratio is generally favorable as it implies that the company is effectively using its fixed assets to generate sales. However, it is important to consider the industry benchmarks and compare Universal Corporation's ratio with its competitors for a more contextual analysis. Overall, the increasing trend in fixed asset turnover is a positive sign of efficiency and effectiveness in asset utilization for Universal Corporation.
Peer comparison
Mar 31, 2024