Universal Corporation (UVV)
Inventory turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,398,410 | 2,212,480 | 2,111,540 | 1,694,680 | 1,597,350 |
| Inventory | US$ in thousands | 1,165,330 | 1,403,160 | 1,036,780 | 1,016,670 | 786,618 |
| Inventory turnover | 2.06 | 1.58 | 2.04 | 1.67 | 2.03 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,398,410K ÷ $1,165,330K
= 2.06
Universal Corporation's inventory turnover has shown some fluctuations over the past five years. The ratio stood at 2.03 on March 31, 2021, indicating that the company turned over its inventory approximately 2.03 times during that period.
However, there was a slight decline in inventory turnover to 1.67 on March 31, 2022, suggesting that the company took longer to sell off its inventory compared to the previous year.
Fortunately, Universal Corporation managed to improve its inventory turnover in the following year, reaching 2.04 on March 31, 2023. This indicates that the company was more efficient in managing its inventory and selling its products.
Subsequently, the inventory turnover dropped to 1.58 on March 31, 2024, which could be a concern as it suggests a slowdown in inventory management efficiency.
On a positive note, the inventory turnover ratio bounced back to 2.06 on March 31, 2025, indicating that Universal Corporation was able to enhance its inventory management practices and sell its products at a faster rate compared to the previous year.
Overall, while there have been fluctuations in Universal Corporation's inventory turnover ratio over the past five years, the company's ability to effectively manage its inventory and improve turnover efficiency is crucial for maintaining a healthy and profitable operation.
Peer comparison
Mar 31, 2025