Universal Corporation (UVV)
Working capital turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,947,284 | 3,015,865 | 2,900,179 | 2,827,901 | 2,748,573 | 2,671,692 | 2,645,224 | 2,657,724 | 2,569,824 | 2,522,818 | 2,380,423 | 2,183,394 | 2,103,601 | 2,074,218 | 2,094,505 | 2,017,575 | 1,983,357 | 1,997,861 | 1,829,979 | 1,928,875 |
| Total current assets | US$ in thousands | 2,156,100 | 2,215,640 | 2,211,920 | 2,198,460 | 2,102,540 | 2,013,630 | 2,047,710 | 2,054,790 | 1,802,890 | 1,951,890 | 1,991,390 | 1,935,140 | 1,748,010 | 1,745,310 | 1,657,920 | 1,604,460 | 1,555,360 | 1,604,800 | 1,594,650 | 1,462,660 |
| Total current liabilities | US$ in thousands | 750,161 | 819,315 | 849,422 | 846,056 | 711,358 | 624,874 | 701,145 | 717,872 | 441,987 | 598,227 | 798,447 | 742,012 | 518,724 | 547,785 | 399,409 | 353,168 | 293,157 | 346,346 | 408,164 | 265,600 |
| Working capital turnover | 2.10 | 2.16 | 2.13 | 2.09 | 1.98 | 1.92 | 1.96 | 1.99 | 1.89 | 1.86 | 2.00 | 1.83 | 1.71 | 1.73 | 1.66 | 1.61 | 1.57 | 1.59 | 1.54 | 1.61 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,947,284K ÷ ($2,156,100K – $750,161K)
= 2.10
The working capital turnover of Universal Corporation has shown a positive trend over the past few years, increasing from 1.61 in June 30, 2020, to 2.10 in March 31, 2025. This indicates that the company has been able to efficiently utilize its working capital to generate sales revenue.
The gradual increase in working capital turnover signifies that Universal Corporation has been able to manage its working capital more effectively, with each dollar of working capital generating more sales over time. This could be attributed to improved inventory management, better receivables collection, or a more efficient payables turnover.
The peak working capital turnover of 2.16 on December 31, 2024, indicates the highest efficiency in converting working capital into revenue during the period under review. However, it is important for the company to maintain this efficiency and potentially seek further improvements to sustain or enhance its operational performance.
Overall, the increasing trend in working capital turnover for Universal Corporation reflects a positive operational efficiency and financial management, suggesting that the company is effectively utilizing its resources to drive sales growth.
Peer comparison
Mar 31, 2025