Universal Corporation (UVV)
Payables 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 |
| Payables | US$ in thousands | 100,035 | 78,327 | 87,106 | 79,747 | 110,348 | 89,423 | 70,903 | 89,857 | 83,213 | 208,244 | 167,153 | 235,706 | 168,491 | 230,162 | 159,496 | 130,988 | 140,766 | 163,837 | 94,642 | 133,621 |
| Payables turnover | 23.98 | 31.08 | 26.93 | 28.65 | 20.07 | 24.20 | 30.45 | 24.40 | 25.38 | 9.92 | 11.59 | 7.46 | 10.06 | 7.23 | 10.51 | 12.39 | 11.35 | 9.93 | 15.91 | 11.80 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,398,539K ÷ $100,035K
= 23.98
The payables turnover ratio reflects Universal Corporation's efficiency in managing its accounts payable by measuring how quickly the company pays its suppliers. A higher payables turnover ratio indicates that the company is taking less time to pay its suppliers, which could be a sign of favorable credit terms or effective cash flow management.
Based on the data provided, we can see fluctuations in Universal Corporation's payables turnover over the period from June 30, 2020, to March 31, 2025. The ratio varies between a high of 31.08 on December 31, 2024, and a low of 7.23 on December 31, 2021.
It is important to note that a very high or very low payables turnover ratio may raise red flags and require further investigation. A very high ratio may indicate that the company is paying its suppliers too quickly, potentially affecting cash flow and liquidity. Conversely, a very low ratio may suggest issues with supplier relationships or cash flow constraints.
Overall, an analysis of Universal Corporation's payables turnover ratio suggests that the company has demonstrated fluctuations in its ability to manage its payables efficiently over the period under review. This variability may be impacted by factors such as changes in purchasing patterns, payment terms negotiations with suppliers, or cash flow management strategies.
Peer comparison
Mar 31, 2025