Universal Corporation (UVV)
Payables 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 |
| Payables | US$ in thousands | 100,035 | 110,348 | 89,043 | 168,491 | 140,766 |
| Payables turnover | 23.98 | 20.05 | 23.71 | 10.06 | 11.35 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,398,410K ÷ $100,035K
= 23.98
Using the provided data, Universal Corporation's payables turnover has shown fluctuations over the years. In March 31, 2021, the payables turnover ratio was 11.35, indicating that the company paid off its suppliers approximately 11.35 times during that year.
This ratio decreased to 10.06 by March 31, 2022, suggesting a slight decrease in the frequency of paying suppliers. However, in the following years, there was a significant increase in the payables turnover ratio.
By March 31, 2023, the payables turnover ratio surged to 23.71, showing that the company was paying its suppliers more frequently, almost doubling the turnover rate compared to the previous year. This trend continued in March 31, 2024, with the payables turnover ratio at 20.05, and further increased to 23.98 by March 31, 2025.
The increasing trend in payables turnover indicates that Universal Corporation has been managing its accounts payable effectively, settling its obligations to suppliers more promptly in recent years. This may signify better cash flow management, improved supplier relationships, and potential negotiation power with suppliers. However, it is essential for the company to ensure that this trend is balanced with maintaining healthy liquidity and operational efficiency.
Peer comparison
Mar 31, 2025