Universal Corporation (UVV)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 10.26 12.05 14.08 13.91 12.59 9.21 9.06 11.78 10.69 10.20 11.49 12.02 10.67 9.28 7.99 12.60 9.02 10.83 8.27 12.82
Payables turnover 1,567.90 20,334.69 14,847.71 1,670.12 412.63 41,317.14 — 23,181.73 369.59 — — — — — — — — — — —
Working capital turnover 3.88 3.78 3.86 3.91 3.72 3.69 3.96 3.63 3.39 3.43 3.29 3.19 3.11 2.66 2.54 2.68 2.62 2.46 2.68 2.75

The inventory turnover for Universal Corporation has shown a fluctuating trend over the periods analyzed, ranging from 9.49 to 25.56 times. During the later periods, the company's efficiency in managing its inventory has improved, as indicated by the increasing turnover ratios.

The receivables turnover ratio has also varied over time, with values ranging from 7.99 to 14.08. This indicates that the company has been able to collect its receivables effectively, with higher ratios implying a quicker conversion of receivables into cash.

The payables turnover ratio has exhibited significant fluctuations, with some extreme values recorded. This may suggest variability in the company's payment policies and supplier relationships. The high payables turnover ratios in certain periods might indicate a rapid payment cycle, which could impact cash flow and liquidity.

The working capital turnover ratio for Universal Corporation has remained relatively stable, indicating that the company has efficiently utilized its working capital to generate sales. The consistency in this ratio implies a consistent operating efficiency in utilizing its current assets and liabilities.

Overall, the analysis of Universal Corporation's activity ratios suggests mixed performance in inventory management, effective receivables collection, fluctuations in payables management, and stable efficiency in working capital utilization over the periods examined.

Average number of days

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
Days of inventory on hand (DOH) days 27.79 28.87 31.43 29.05 30.79 32.79 38.45 35.60 36.12 30.41 29.93 27.01 28.55 27.86 24.44 21.07 20.30 17.36 18.43 14.28
Days of sales outstanding (DSO) days 35.56 30.29 25.93 26.24 29.00 39.63 40.27 30.99 34.14 35.77 31.76 30.36 34.21 39.33 45.66 28.97 40.49 33.69 44.15 28.48
Number of days of payables days 0.23 0.02 0.02 0.22 0.88 0.01 — 0.02 0.99 — — — — — — — — — — —

The Days of Inventory on Hand (DOH) measure for Universal Corporation has ranged from 14.28 days to 38.45 days over the past five years. The company's inventory turnover appears to have improved gradually since the most recent quarter, suggesting better management of inventory levels.

In terms of Days of Sales Outstanding (DSO), Universal Corporation's figures have fluctuated between 25.93 days and 45.66 days during the same period. The trend indicates variations in the collection period of accounts receivable, with a notable improvement in the latest quarter, reflecting a quicker conversion of sales into cash.

Moreover, the Number of Days of Payables for Universal Corporation has experienced minimal variation, fluctuating between 0.01 days and 0.99 days. This suggests consistent payment practices towards suppliers, with a relatively stable payable period across the quarters.

Overall, the analysis of Universal Corporation's activity ratios indicates a positive trend in inventory management efficiency and accounts receivable collection, while also showcasing consistent payment practices towards suppliers.

Long-term

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
Fixed asset turnover 14.74 14.55 14.56 14.63 14.41 14.44 13.85 12.55 12.08 11.79 12.35 11.35 11.24 10.09 9.38 10.18 10.07 10.89 11.77 12.04
Total asset turnover 1.84 1.85 1.81 1.81 1.92 1.81 1.68 1.56 1.61 1.58 1.71 1.67 1.68 1.40 1.34 1.53 1.50 1.49 1.57 1.66

Universal Corporation's long-term activity ratios exhibit varying trends over the past few quarters. The fixed asset turnover ratio has shown a generally increasing trend, indicating that the company is generating more revenue from its fixed assets over time. This suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio fluctuates but remains relatively stable over the periods analyzed. This implies a consistent level of sales generated from the total assets employed by the company.

Overall, while the fixed asset turnover reflects improving efficiency in utilizing fixed assets to generate revenue, the total asset turnover indicates a stable performance in generating sales from all assets. It is essential for Universal Corporation to monitor these ratios regularly to ensure optimal asset utilization and sustainable revenue generation.