Universal Corporation (UVV)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,437,210 | 1,397,090 | 1,340,540 | 1,307,300 | 1,246,660 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.28 | 0.28 | 0.23 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $617,364K ÷ ($617,364K + $1,437,210K)
= 0.30
The debt-to-capital ratio of Universal Corporation has shown some fluctuations over the past five years. As of March 31, 2024, the ratio stood at 0.30, which indicates that 30% of the company's capital structure is financed by debt. This ratio has slightly decreased compared to the previous year (0.31), suggesting a relatively lower reliance on debt for financing.
Looking back at the trend over the past five years, we can see variations in the debt-to-capital ratio. In 2022 and 2021, the ratio was relatively stable at 0.28, indicating a consistent balance between debt and capital in the company's financial structure. However, there was a significant increase from 0.23 in 2020 to 0.28 in 2021, which could indicate a strategic decision to increase debt financing during that period.
Overall, the debt-to-capital ratio of Universal Corporation has been relatively moderate and indicates a balanced approach to capital structure management. It is important for stakeholders to continue monitoring this ratio to assess the company's leverage and financial risk levels effectively.
Peer comparison
Mar 31, 2024