Universal Corporation (UVV)
Working capital 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 |
| Total current assets | US$ in thousands | 2,102,540 | 1,802,890 | 1,748,010 | 1,555,360 | 1,479,620 |
| Total current liabilities | US$ in thousands | 711,358 | 441,987 | 518,724 | 293,157 | 267,399 |
| Working capital turnover | 3.87 | 3.71 | 3.38 | 3.11 | 3.10 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,381,540K ÷ ($2,102,540K – $711,358K)
= 3.87
The working capital turnover ratio for Universal Corporation has shown a generally increasing trend over the past five years, indicating that the company is becoming more efficient in managing its working capital.
The ratio has improved from 3.10 in 2020 to 3.87 in 2024, suggesting that the company is generating more revenue relative to its working capital investment. This increase indicates that Universal Corporation is effectively utilizing its working capital to support its operations and generate sales.
A higher working capital turnover ratio is generally seen as a positive indicator of efficiency and financial health, as it indicates that the company is able to generate sales more efficiently with the working capital available.
Overall, the increasing trend in Universal Corporation's working capital turnover ratio suggests improving efficiency in managing working capital and generating revenue, which is a positive sign for the company's financial performance.
Peer comparison
Mar 31, 2024