Universal Corporation (UVV)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.58% | 52.29% | 52.81% | 52.86% | 9.49% |
| Operating profit margin | 4.13% | 3.58% | 3.85% | 3.76% | 3.36% |
| Pretax margin | 2.80% | 2.69% | 3.01% | 2.97% | 2.84% |
| Net profit margin | 2.22% | 2.45% | 2.08% | 2.23% | 1.91% |
Universal Corporation's profitability ratios have shown mixed performance over the past five years. The gross profit margin has remained relatively stable, fluctuating between 52.29% to 52.86%, indicating that the company has been able to maintain consistent profitability on its sales after accounting for the cost of goods sold.
The operating profit margin has shown a slight upward trend, with an increase from 3.36% in 2020 to 4.13% in 2024. This suggests that Universal Corporation has been able to improve its efficiency in managing operating expenses and generating profits from its core business operations.
The pretax margin has fluctuated within a narrow range, with a slight increase from 2.84% in 2020 to 2.80% in 2024. This indicates that the company has been able to effectively manage its pre-tax income relative to its total revenue over the years.
The net profit margin has shown some variability, with a decrease in 2023 followed by a slight recovery in 2024. Despite the fluctuations, the net profit margin has generally improved from 1.91% in 2020 to 2.22% in 2024, indicating that Universal Corporation has been successful in controlling its overall expenses and generating profits for its shareholders.
Overall, while Universal Corporation has demonstrated consistent gross profitability, there have been improvements in operating and net profit margins over the years, reflecting the company's efforts to enhance operational efficiency and profitability.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.56% | 6.86% | 6.20% | 6.31% | 5.96% |
| Return on assets (ROA) | 4.07% | 4.70% | 3.35% | 3.73% | 3.38% |
| Return on total capital | 10.56% | 9.19% | 8.23% | 7.77% | 7.85% |
| Return on equity (ROE) | 8.32% | 8.88% | 6.46% | 6.69% | 5.75% |
Universal Corporation's profitability ratios have shown a positive trend over the past five years, indicating the company's ability to generate profit from its assets and capital.
The Operating Return on Assets (Operating ROA) has increased steadily from 5.96% in 2020 to 7.56% in 2024. This ratio measures the company's operating income generated per dollar of assets, reflecting improved operational efficiency over the years.
The Return on Assets (ROA) has fluctuated between 3.35% and 4.70% during the same period, with a slight decrease in 2024 compared to the previous year. This ratio indicates that Universal Corporation has been able to generate profit relative to its total assets, though the volatility suggests potential variability in asset utilization and profitability.
The Return on Total Capital has consistently increased from 7.77% in 2021 to 10.56% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders, demonstrating efficient capital deployment and profitability improvement.
The Return on Equity (ROE) has also shown an upward trend, rising from 5.75% in 2020 to 8.32% in 2024. This ratio signifies the return earned on shareholders' equity investment, indicating improved efficiency in utilizing shareholder funds to generate profit.
Overall, Universal Corporation's profitability ratios suggest a positive financial performance, with an increasing trend in most indicators over the past five years. This improvement reflects the company's effective management of assets, capital, and equity to drive profitability and create value for its stakeholders.