Universal Corporation (UVV)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 177.34 | 231.48 | 179.22 | 218.97 | 179.74 |
| Days of sales outstanding (DSO) | days | 78.39 | 70.47 | 58.84 | 67.67 | 67.74 |
| Number of days of payables | days | 15.22 | 18.20 | 15.39 | 36.29 | 32.17 |
| Cash conversion cycle | days | 240.52 | 283.75 | 222.67 | 250.35 | 215.32 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 177.34 + 78.39 – 15.22
= 240.52
The cash conversion cycle of Universal Corporation has shown fluctuations over the past five years. As of March 31, 2021, the company's cash conversion cycle stood at 215.32 days, indicating that it took, on average, 215.32 days to convert its investments in raw materials and production into cash receipts from sales.
By March 31, 2022, the cash conversion cycle increased to 250.35 days, suggesting a longer period for the company to collect cash from its operations. The following year, on March 31, 2023, the cash conversion cycle improved to 222.67 days, reflecting a more efficient management of working capital.
However, by March 31, 2024, the cash conversion cycle increased significantly to 283.75 days, signaling potential challenges in converting investments into cash flows. Nevertheless, by March 31, 2025, the company was able to reduce the cash conversion cycle to 240.52 days, indicating some improvement in the efficiency of its cash conversion process.
Overall, Universal Corporation's cash conversion cycle has displayed variability, with periods of improvement and deterioration. It is essential for the company to closely monitor and manage its working capital to ensure a more stable and streamlined cash conversion cycle in the future.
Peer comparison
Mar 31, 2025