Universal Corporation (UVV)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,381,540 | 5,054,850 | 4,159,990 | 3,928,210 | 3,761,740 |
| Receivables | US$ in thousands | 525,262 | 402,073 | 389,977 | 368,066 | 352,194 |
| Receivables turnover | 10.25 | 12.57 | 10.67 | 10.67 | 10.68 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,381,540K ÷ $525,262K
= 10.25
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by indicating how many times a company collects its average accounts receivable balance during a period. A higher turnover ratio indicates that the company is collecting its outstanding receivables more frequently.
Based on the data provided, Universal Corporation's receivables turnover ratio has fluctuated over the past five years. In 2024, the receivables turnover ratio was 10.25, which decreased from the previous year's ratio of 12.57. This decline suggests that Universal Corporation took longer to collect its accounts receivable in 2024 compared to 2023.
Despite the decrease in 2024, Universal Corporation's receivables turnover ratio remained relatively stable over the five-year period, ranging from 10.25 to 12.57. This consistency indicates that the company has been fairly effective in managing its accounts receivable and collecting outstanding balances in a timely manner.
Overall, a receivables turnover ratio above 10 signifies that Universal Corporation is efficiently managing its accounts receivable and converting them into cash multiple times throughout the year. However, the decreasing trend in 2024 compared to the previous year may warrant further investigation into the company's credit policies, collection procedures, and overall financial health.
Peer comparison
Mar 31, 2024