Universal Corporation (UVV)

Short-term

Turnover ratios

Universal Corporation's activity ratios can provide insights into the efficiency of the company's operations. Let's analyze the activity ratios based on the provided data:

1. Inventory Turnover:
- Universal Corporation's inventory turnover fluctuated over the periods analyzed, ranging from a low of 1.37 to a high of 2.18.
- The company's inventory turnover improved over the years, with a notable increase from 1.37 on June 30, 2022, to 2.06 on March 31, 2025.
- A higher inventory turnover indicates that Universal Corporation is selling its inventory more quickly, which is generally favorable.

2. Receivables Turnover:
- The receivables turnover ratio also varied during the periods, with values ranging from 4.57 to 7.56.
- The trend in receivables turnover suggests some fluctuations, with improvements in certain periods but declines in others.
- A higher receivables turnover indicates that Universal Corporation is collecting its receivables more efficiently.

3. Payables Turnover:
- Universal Corporation's payables turnover ratios were quite dynamic, varying from 7.23 to 31.08.
- The company's payables turnover ratios experienced significant fluctuations, with both ups and downs observed over the years.
- A higher payables turnover ratio may indicate that Universal Corporation is managing its payables effectively, potentially benefitting from longer credit terms.

4. Working Capital Turnover:
- The working capital turnover ratios for Universal Corporation ranged from 1.54 to 2.16 during the periods analyzed.
- The company's working capital turnover improved over time, indicating that it is generating more revenue relative to its working capital investment.
- A higher working capital turnover ratio signifies that Universal Corporation is utilizing its working capital efficiently to generate sales.

Overall, analyzing Universal Corporation's activity ratios provides valuable insights into the company's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital. Monitoring these ratios over time can help stakeholders assess the company's performance and identify areas for improvement.

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Average number of days

Universal Corporation's activity ratios provide insights into the efficiency of its inventory management, sales collection, and payment to suppliers.

1. Days of Inventory on Hand (DOH): The trend in Universal Corporation's DOH shows fluctuations over the period. It ranged from a low of 167.07 days on December 31, 2024, to a high of 265.73 days on June 30, 2022. Generally, a lower DOH indicates efficient inventory management, while a higher DOH suggests excess inventory or slower inventory turnover.

2. Days of Sales Outstanding (DSO): Universal Corporation's DSO varied during the period, with values oscillating between 48.25 days on June 30, 2020, and 79.82 days on September 30, 2022. A lower DSO indicates faster collection of sales revenue, while a higher DSO implies delayed collection, which can impact cash flow and liquidity.

3. Number of Days of Payables: The number of days Universal Corporation took to pay its suppliers also showed fluctuations. It ranged from 11.74 days on December 31, 2024, to 50.50 days on December 31, 2021. A longer payment cycle can indicate stretched payables, potentially straining supplier relationships, while a shorter cycle may imply stronger bargaining power with suppliers.

By analyzing these activity ratios collectively, one can assess Universal Corporation's operational efficiency, cash flow management, and relationships with both customers and suppliers. Further analysis and comparison with industry benchmarks can provide deeper insights into the company's overall financial health and performance.

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Long-term

The long-term activity ratios of Universal Corporation provide insights into how effectively the company is utilizing its fixed assets and generating sales with its total assets.

1. Fixed Asset Turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. From June 2020 to March 2025, Universal Corporation's fixed asset turnover ratio fluctuated, showing a general trend of improvement. The ratio increased from 6.11 in June 2020 to 7.45 in June 2023 before slightly decreasing to 6.73 in September 2023. From December 2023 to March 2025, the fixed asset turnover ratio was not available.

2. Total Asset Turnover: This ratio indicates how well the company is generating sales relative to its total assets. Universal Corporation's total asset turnover ratio also varied during the period analyzed. It started at 0.92 in June 2020, reaching a low of 0.79 in June 2022, and then gradually increasing to 0.99 by March 2025.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Universal Corporation has been efficiently utilizing its assets to generate revenue over the years. The company's ability to maintain or improve these ratios indicates effective management of its assets to drive sales growth. However, a more detailed analysis would be necessary to understand the specific factors influencing these ratios and how they compare to industry benchmarks.