Universal Corporation (UVV)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,989,550 | 2,937,240 | 2,639,180 | 2,586,340 | 2,341,920 |
| Total stockholders’ equity | US$ in thousands | 1,458,560 | 1,437,210 | 1,397,090 | 1,340,540 | 1,307,300 |
| Financial leverage ratio | 2.05 | 2.04 | 1.89 | 1.93 | 1.79 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,989,550K ÷ $1,458,560K
= 2.05
The financial leverage ratio of Universal Corporation has shown a gradual increase over the past five years, indicating an uptrend in the company's utilization of debt in its capital structure. The ratio increased from 1.79 in March 2021 to 2.05 in March 2025. This suggests that the company has been relying more on debt financing to fund its operations and expansion activities. While an increase in leverage can magnify returns on equity when business is favorable, it also exposes the company to higher financial risk, particularly in times of economic downturns or volatility in the market. It is important for Universal Corporation to carefully manage its debt levels to ensure a healthy balance between debt and equity in order to maintain financial stability and sustainability in the long run.
Peer comparison
Mar 31, 2025