Universal Corporation (UVV)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 617,364 | 616,809 | 518,547 | 518,172 | 368,764 |
| Total assets | US$ in thousands | 2,937,240 | 2,639,180 | 2,586,340 | 2,341,920 | 2,120,920 |
| Debt-to-assets ratio | 0.21 | 0.23 | 0.20 | 0.22 | 0.17 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $617,364K ÷ $2,937,240K
= 0.21
The debt-to-assets ratio of Universal Corporation has fluctuated over the past five years. It was highest in 2023 at 0.23 and lowest in 2020 at 0.17. In 2024, the ratio decreased to 0.21 compared to the previous year.
A decreasing debt-to-assets ratio generally indicates that the company is relying less on debt to finance its assets, which can be viewed positively as it signifies a lower level of financial risk. Conversely, an increasing ratio may suggest higher financial leverage and potential risk.
In the case of Universal Corporation, the slight decrease in the debt-to-assets ratio in 2024 compared to 2023 indicates a positive trend towards potentially reducing financial risk and dependency on debt financing. However, it would be important to monitor future trends to ensure the company maintains a healthy balance between debt and assets in its capital structure.
Peer comparison
Mar 31, 2024