Universal Corporation (UVV)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 222,009 | 181,072 | 160,315 | 147,810 | 126,367 |
| Total assets | US$ in thousands | 2,937,240 | 2,639,180 | 2,586,340 | 2,341,920 | 2,120,920 |
| Operating ROA | 7.56% | 6.86% | 6.20% | 6.31% | 5.96% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $222,009K ÷ $2,937,240K
= 7.56%
Universal Corporation's operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating an improvement in the efficiency of utilizing its assets to generate operating income. The operating ROA increased from 5.96% in 2020 to 7.56% in 2024, reaching its highest level during this period.
This improvement suggests that Universal Corporation has been able to enhance its operational performance and profitability relative to its asset base. A higher operating ROA signifies that the company is generating more operating income for each dollar of assets employed in its operations.
The consistent growth in operating ROA reflects management's ability to utilize the company's assets effectively, potentially through cost control measures, operational efficiencies, or revenue growth initiatives. Overall, the increasing trend in operating ROA is a positive indication of Universal Corporation's operational effectiveness and value creation for its stakeholders.
Peer comparison
Mar 31, 2024