Universal Corporation (UVV)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,947,280 | 2,748,570 | 2,569,820 | 2,103,600 | 1,983,360 |
| Total current assets | US$ in thousands | 2,156,100 | 2,102,540 | 1,802,890 | 1,748,010 | 1,555,360 |
| Total current liabilities | US$ in thousands | 750,161 | 711,358 | 441,987 | 518,724 | 293,157 |
| Working capital turnover | 2.10 | 1.98 | 1.89 | 1.71 | 1.57 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,947,280K ÷ ($2,156,100K – $750,161K)
= 2.10
Universal Corporation's working capital turnover has been showing a positive trend over the past five years. The ratio has increased steadily from 1.57 in March 31, 2021, to 2.10 in March 31, 2025. This indicates that the company is becoming more efficient in generating revenue from its working capital.
A higher working capital turnover ratio signifies that the company is effectively utilizing its working capital to support its operations and generate sales. It indicates that the company is able to quickly convert its current assets into sales, which is a positive sign of operational efficiency.
The improvement in the working capital turnover ratio over the years reflects positively on the company's management of its working capital and indicates a healthier financial position. It suggests that Universal Corporation has been able to manage its working capital more effectively, potentially leading to increased profitability and overall financial health.
Peer comparison
Mar 31, 2025