Universal Corporation (UVV)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,479,620 | 1,578,890 | 1,649,560 | 1,602,060 |
| Total current liabilities | US$ in thousands | 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 | 267,399 | 270,627 | 352,444 | 290,942 |
| Working capital turnover | 3.88 | 3.78 | 3.86 | 3.91 | 3.72 | 3.69 | 3.96 | 3.63 | 3.39 | 3.43 | 3.29 | 3.19 | 3.11 | 2.66 | 2.54 | 2.68 | 2.62 | 2.46 | 2.68 | 2.75 |
March 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,391,810K ÷ ($2,102,540K – $711,358K)
= 3.88
Universal Corporation's working capital turnover has displayed fluctuations over the past few quarters. The ratio has ranged from a low of 2.46 to a high of 3.96. The average working capital turnover over this period is approximately 3.24.
A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales. In this case, the company's working capital turnover has generally been above the average, suggesting efficient utilization of its working capital.
However, the fluctuations in the ratio imply that there may be seasonal or operational factors affecting the company's working capital efficiency. It would be beneficial for Universal Corporation to analyze the causes behind these fluctuations to maintain a consistent and efficient working capital turnover ratio in the long term.
Peer comparison
Mar 31, 2024