Universal Corporation (UVV)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,541,566 | 2,480,832 | 2,464,720 | 2,496,831 | 2,405,622 | 2,355,077 | 2,226,735 | 2,039,992 | 1,961,780 | 1,940,836 | 1,963,534 | 1,895,490 | 1,866,328 | 1,891,144 | 1,736,929 | 1,808,168 | 1,785,091 | 1,779,072 | 1,932,037 | 1,984,549 |
| Inventory | US$ in thousands | 193,518 | 196,246 | 212,268 | 198,730 | 202,907 | 211,561 | 234,581 | 198,966 | 194,161 | 161,704 | 161,001 | 140,249 | 145,965 | 144,333 | 116,299 | 104,399 | 99,275 | 84,621 | 97,536 | 77,654 |
| 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 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,541,566K ÷ $193,518K
= 13.13
Inventory turnover measures how efficiently a company manages its inventory by indicating how many times inventory is sold and replaced over a period. Universal Corporation's inventory turnover has fluctuated over the past years, ranging from a low of 9.49 to a high of 25.56. The trend shows some variability, with peaks and troughs across different quarters.
In recent periods, there has been a decreasing trend in inventory turnover, indicating that the company is holding onto its inventory for a longer period before selling it. This could signal potential issues such as overstocking, slow sales, or ineffective inventory management practices. A lower inventory turnover could tie up cash in unsold inventory, potentially leading to higher carrying costs and reduced liquidity.
On the other hand, the higher inventory turnover values observed in some quarters, such as 25.56 and 21.02, suggest that the company was more efficient in selling its inventory during those periods. A higher turnover ratio generally indicates effective inventory management practices, quick sales, and a more agile business operation.
Overall, a detailed analysis of Universal Corporation's inventory turnover trends would require a deeper understanding of the company's industry, business model, and internal operations to assess the impact of these fluctuations on its financial performance and operational efficiency.
Peer comparison
Mar 31, 2024
Mar 31, 2024