Universal Corporation (UVV)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 177.34 | 167.07 | 199.52 | 238.13 | 231.31 | 203.32 | 219.56 | 216.31 | 179.22 | 190.53 | 226.68 | 265.73 | 218.97 | 223.20 | 221.14 | 228.20 | 179.74 | 215.10 | 243.57 | 222.97 |
| Days of sales outstanding (DSO) | days | 78.39 | 78.74 | 76.05 | 64.14 | 70.47 | 63.99 | 58.55 | 61.64 | 58.84 | 78.50 | 79.82 | 61.46 | 67.67 | 70.75 | 62.83 | 60.05 | 67.74 | 65.93 | 75.22 | 48.25 |
| Number of days of payables | days | 15.22 | 11.74 | 13.56 | 12.74 | 18.19 | 15.08 | 11.99 | 14.96 | 14.38 | 36.81 | 31.50 | 48.96 | 36.29 | 50.50 | 34.74 | 29.46 | 32.17 | 36.76 | 22.95 | 30.93 |
| Cash conversion cycle | days | 240.51 | 234.07 | 262.01 | 289.53 | 283.59 | 252.23 | 266.12 | 263.00 | 223.68 | 232.22 | 275.00 | 278.23 | 250.35 | 243.44 | 249.23 | 258.79 | 215.31 | 244.27 | 295.84 | 240.30 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 177.34 + 78.39 – 15.22
= 240.51
The cash conversion cycle for Universal Corporation has fluctuated over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 2020 to March 2021, the cash conversion cycle decreased, indicating an improvement in efficiency in managing inventory, accounts receivable, and accounts payable. However, from June 2021 to September 2022, there was an increase in the cash conversion cycle, suggesting potential challenges in efficiently managing working capital.
In the most recent periods, from September 2022 to March 2025, the cash conversion cycle has stabilized around the 250-day mark, with some fluctuations. This stability may indicate that Universal Corporation has found a balance in managing its operations, inventory levels, and cash flows.
Overall, the trend in the cash conversion cycle for Universal Corporation shows a mix of improvements and challenges in working capital management. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient operations and healthy financial performance.
Peer comparison
Mar 31, 2025