Universal Corporation (UVV)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,398,539 | 2,434,551 | 2,345,502 | 2,284,652 | 2,214,141 | 2,163,704 | 2,158,687 | 2,192,645 | 2,111,539 | 2,065,044 | 1,936,676 | 1,757,223 | 1,694,675 | 1,663,609 | 1,675,869 | 1,622,864 | 1,597,354 | 1,626,678 | 1,505,323 | 1,576,948 |
| Inventory | US$ in thousands | 1,165,330 | 1,114,350 | 1,282,130 | 1,490,540 | 1,403,160 | 1,205,280 | 1,298,510 | 1,299,450 | 1,036,780 | 1,077,940 | 1,202,750 | 1,279,330 | 1,016,670 | 1,017,290 | 1,015,330 | 1,014,630 | 786,618 | 958,620 | 1,004,510 | 963,339 |
| Inventory turnover | 2.06 | 2.18 | 1.83 | 1.53 | 1.58 | 1.80 | 1.66 | 1.69 | 2.04 | 1.92 | 1.61 | 1.37 | 1.67 | 1.64 | 1.65 | 1.60 | 2.03 | 1.70 | 1.50 | 1.64 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,398,539K ÷ $1,165,330K
= 2.06
The inventory turnover of Universal Corporation has fluctuated over the last few years, ranging from a low of 1.37 to a high of 2.18. The inventory turnover ratio is an important efficiency metric that indicates how many times a company sells and replaces its inventory within a specific period.
A higher inventory turnover ratio suggests that the company is selling its inventory quickly and efficiently, which is generally considered favorable as it indicates strong sales performance. On the other hand, a lower inventory turnover ratio may suggest inefficiencies in inventory management, potentially leading to higher carrying costs or obsolete inventory.
In the case of Universal Corporation, the inventory turnover ratio has shown some variability, indicating potential fluctuations in sales activity or inventory management practices. Overall, the company's inventory turnover ratios have ranged around the industry average, suggesting a reasonable balance in managing inventory levels.
It is important for Universal Corporation to monitor its inventory turnover ratio regularly to ensure optimal inventory management and operational efficiency. By analyzing trends in inventory turnover, the company can make informed decisions regarding production levels, purchasing, and pricing strategies to improve overall performance and profitability.
Peer comparison
Mar 31, 2025
Mar 31, 2025