Universal Corporation (UVV)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,551,930 | 2,411,790 | 1,963,020 | 1,851,680 | 1,785,350 |
| Payables | US$ in thousands | 1,621 | 5,830 | 5,308 | — | — |
| Payables turnover | 1,574.29 | 413.69 | 369.82 | — | — |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,551,930K ÷ $1,621K
= 1,574.29
The payables turnover ratio for Universal Corporation has shown a significant improvement over the past five years. In particular, the ratio has increased from 369.82 in 2022 to 413.69 in 2023, and then experienced a substantial jump to 1,574.29 in 2024.
This trend indicates that Universal Corporation has been able to effectively manage its payables or accounts payable turnover, meaning that the company is taking less time to pay its suppliers and creditors, which can have positive implications for cash flow management and working capital efficiency.
The sharp increase in the payables turnover ratio from 2023 to 2024 suggests that Universal Corporation may have implemented more efficient payment strategies or negotiated better terms with its suppliers, leading to a quicker turnover of payables.
Overall, the upward trend in the payables turnover ratio reflects positively on Universal Corporation's ability to manage its accounts payable effectively and optimize its cash flow position in recent years.
Peer comparison
Mar 31, 2024