Universal Corporation (UVV)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,391,810 | 5,245,610 | 5,193,930 | 5,223,710 | 5,060,650 | 4,996,660 | 4,718,680 | 4,329,760 | 4,169,502 | 4,102,022 | 4,143,322 | 3,990,997 | 3,926,771 | 3,349,125 | 3,014,895 | 3,213,146 | 3,175,164 | 3,214,793 | 3,477,373 | 3,605,287 |
| Receivables | US$ in thousands | 525,262 | 435,306 | 368,924 | 375,564 | 402,073 | 542,570 | 520,585 | 367,626 | 389,977 | 402,041 | 360,554 | 331,947 | 368,066 | 360,873 | 377,139 | 254,989 | 352,194 | 296,729 | 420,637 | 281,293 |
| 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 |
March 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $5,391,810K ÷ $525,262K
= 10.26
The receivables turnover for Universal Corporation has fluctuated over the past 20 quarters, ranging from a low of 7.99 to a high of 14.08. The turnover ratio indicates how efficiently the company is collecting payments from its customers. A higher turnover ratio suggests that the company is collecting receivables more quickly, which is generally positive as it indicates strong liquidity and efficient working capital management.
Looking at the trend over time, there are periods where the receivables turnover ratio has shown improvement, such as in the third quarter of 2023 and the second quarter of 2022. This improvement could be attributed to effective credit control measures or better collection practices. Conversely, there are quarters where the ratio has dipped, potentially indicating challenges in collecting payments from customers promptly.
It is important for Universal Corporation to monitor its receivables turnover consistently and strive to maintain a balance between efficient collection of receivables and maintaining positive customer relationships. Analyzing receivables turnover over time allows the company to identify trends, assess the effectiveness of credit policies, and make informed decisions to optimize cash flow and working capital management.
Peer comparison
Mar 31, 2024