Universal Corporation (UVV)
Debt-to-equity 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-equity ratio | 0.43 | 0.44 | 0.39 | 0.40 | 0.30 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $617,364K ÷ $1,437,210K
= 0.43
The debt-to-equity ratio of Universal Corporation has fluctuated over the past five years, indicating changes in the company's capital structure. In the most recent financial year ending on March 31, 2024, the debt-to-equity ratio stood at 0.43, slightly lower than the previous year's ratio of 0.44. This suggests that the company relied slightly less on debt financing and had a slightly stronger equity position compared to the prior year.
Looking further back, the trend shows some variability in the debt-to-equity ratio. The ratio was highest in March 2023 at 0.44 and lowest in March 2020 at 0.30. This implies that Universal Corporation had a higher proportion of debt relative to equity in March 2023 compared to other years, potentially indicating increased leverage during that period.
Overall, the fluctuations in the debt-to-equity ratio of Universal Corporation indicate varying levels of debt financing in relation to equity over the past five years. It is important to consider the reasons behind these fluctuations and assess the company's financial strategy and risk management practices to gain a comprehensive understanding of its capital structure management.
Peer comparison
Mar 31, 2024