Universal Corporation (UVV)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.62% | 19.50% | 17.83% | 19.44% | 19.46% |
| Operating profit margin | 8.28% | 8.08% | 7.05% | 7.62% | 7.45% |
| Pretax margin | 5.23% | 5.97% | 5.52% | 6.76% | 6.34% |
| Net profit margin | 3.22% | 4.35% | 4.83% | 4.12% | 4.41% |
Universal Corporation's Gross Profit Margin has remained relatively stable over the past five years, ranging from 17.83% to 19.50%. This indicates that the company has been able to effectively manage its production costs and generate profit from its goods sold.
In terms of Operating Profit Margin, Universal Corporation has shown a slight upward trend, increasing from 7.45% in 2021 to 8.28% in 2025. This suggests that the company has been successful in controlling its operating expenses and improving its operational efficiency.
The Pretax Margin of Universal Corporation fluctuated over the five-year period, ranging from 5.23% to 6.76%. The downward trend seen from 2022 to 2025 indicates that the company's profitability before taxes has slightly decreased over time, which could be due to various factors such as increased expenses or changes in revenue.
Looking at the Net Profit Margin, Universal Corporation experienced a decline from 4.41% in 2021 to 3.22% in 2025. This downward trend indicates that the company's overall profitability after accounting for all expenses and taxes has decreased over the years. It may be important for the company to further analyze its cost structure and revenue generation strategies to improve its bottom line performance.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.17% | 7.56% | 6.86% | 6.20% | 6.31% |
| Return on assets (ROA) | 3.18% | 4.07% | 4.70% | 3.35% | 3.73% |
| Return on total capital | 16.54% | 16.03% | 13.80% | 12.10% | 10.99% |
| Return on equity (ROE) | 6.52% | 8.32% | 8.88% | 6.46% | 6.69% |
Universal Corporation's profitability ratios show a mixed trend over the past five years.
- The Operating return on assets (Operating ROA) has fluctuated between 6.20% and 8.17%, with a gradual increase from 2022 to 2025. This ratio indicates that the company's operating income generated from its assets has been improving slightly over the years.
- The Return on assets (ROA) has varied between 3.18% and 4.70%, showing inconsistency in the company's ability to generate profit from its total assets. The dip in 2025 compared to 2024 raises concerns about the company's asset utilization efficiency.
- The Return on total capital has shown a more positive trend, increasing from 10.99% in 2021 to 16.54% in 2025. This suggests that Universal Corporation has been effectively utilizing both debt and equity capital to generate profit.
- The Return on equity (ROE) has been relatively stable, ranging from 6.46% to 8.88%. Although there was a peak in 2023, the decrease in 2025 indicates that the company's ability to generate profit from shareholders' equity has slightly weakened.
Overall, Universal Corporation's profitability ratios indicate a need for continued monitoring and strategic management of assets and capital to sustain and improve profitability in the future.