Universal Corporation (UVV)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 216,980 | 185,085 | 152,987 | 141,776 | 126,822 |
| Long-term debt | US$ in thousands | 617,364 | 616,809 | 518,547 | 518,172 | 368,764 |
| Total stockholders’ equity | US$ in thousands | 1,437,210 | 1,397,090 | 1,340,540 | 1,307,300 | 1,246,660 |
| Return on total capital | 10.56% | 9.19% | 8.23% | 7.77% | 7.85% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $216,980K ÷ ($617,364K + $1,437,210K)
= 10.56%
Universal Corporation's return on total capital has shown a consistent improvement over the past five years, with figures increasing from 7.85% in March 2020 to 10.56% in March 2024. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its shareholders. The rising trend in return on total capital suggests that Universal Corporation has been successful in efficiently allocating its resources to generate higher returns. This positive trend is indicative of the company's ability to effectively manage its capital structure and investments to maximize profitability. Overall, the increasing return on total capital reflects positively on Universal Corporation's financial performance and efficiency in capital deployment.
Peer comparison
Mar 31, 2024