Universal Corporation (UVV)

Universal Corporation's solvency ratios have shown consistent and favorable trends over the last five years. The debt-to-assets ratio has decreased from 0.23 in 2023 to 0.21 in 2024, indicating that the company has reduced its reliance on debt to fund its assets. Similarly, the debt-to-capital ratio has shown a downward trend from 0.31 in 2023 to 0.30 in 2024, suggesting that the company's capital structure has become more balanced with a lower proportion of debt.

The debt-to-equity ratio has also improved over the same period, declining from 0.44 in 2023 to 0.43 in 2024. This indicates that Universal Corporation has been able to reduce its debt relative to its equity, contributing to a stronger financial position. Additionally, the financial leverage ratio has increased steadily from 1.70 in 2020 to 2.04 in 2024, reflecting the company's increasing use of financial leverage to support its business operations.

Overall, Universal Corporation's solvency ratios demonstrate a positive trend towards lower debt levels and improved financial stability, which is crucial for the long-term sustainability of the company.

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Coverage ratios

Universal Corporation's interest coverage ratio has shown a declining trend over the past five years, indicating a potential decrease in the company's ability to meet its interest obligations from operating earnings. The ratios have decreased from 6.39 in 2020 to 3.27 in 2024. This may raise concerns about the company's ability to service its debt and the risk of financial distress. A lower interest coverage ratio suggests that the company may be less capable of covering its interest expenses with its operating income, which could signal financial instability. It would be advisable for stakeholders to closely monitor Universal Corporation's financial performance and debt management strategies to mitigate potential risks associated with declining interest coverage ratios.