Universal Corporation (UVV)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 241,281 | 230,353 | 192,773 | 162,168 | 143,685 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,458,560 | 1,437,210 | 1,397,090 | 1,340,540 | 1,307,300 |
| Return on total capital | 16.54% | 16.03% | 13.80% | 12.10% | 10.99% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $241,281K ÷ ($—K + $1,458,560K)
= 16.54%
Universal Corporation's return on total capital has shown a positive trend over the period from March 31, 2021, to March 31, 2025. The return on total capital increased from 10.99% in March 2021 to 16.54% in March 2025, indicating that the company has been generating higher returns relative to its total capital employed.
This improvement in return on total capital suggests that Universal Corporation has been effectively utilizing its capital to generate profits. It reflects the company's ability to generate earnings from both its equity and debt investments. A higher return on total capital is generally viewed positively as it indicates the company's efficiency in generating profits from all sources of capital.
Overall, the increasing trend in Universal Corporation's return on total capital signals that the company is effectively managing its financial resources and generating favorable returns for its stakeholders.
Peer comparison
Mar 31, 2025