Universal Corporation (UVV)
Financial leverage ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,937,240 | 2,833,870 | 2,861,770 | 2,887,660 | 2,639,180 | 2,764,900 | 2,814,000 | 2,779,380 | 2,586,340 | 2,593,530 | 2,425,800 | 2,396,090 | 2,341,920 | 2,388,640 | 2,242,290 | 2,106,840 | 2,120,920 | 2,150,720 | 2,218,230 | 2,177,880 |
| Total stockholders’ equity | US$ in thousands | 1,437,210 | 1,417,080 | 1,384,190 | 1,380,720 | 1,397,090 | 1,360,790 | 1,324,850 | 1,325,760 | 1,340,540 | 1,316,000 | 1,297,330 | 1,303,820 | 1,307,300 | 1,270,520 | 1,239,500 | 1,236,240 | 1,246,660 | 1,309,800 | 1,298,660 | 1,310,340 |
| Financial leverage ratio | 2.04 | 2.00 | 2.07 | 2.09 | 1.89 | 2.03 | 2.12 | 2.10 | 1.93 | 1.97 | 1.87 | 1.84 | 1.79 | 1.88 | 1.81 | 1.70 | 1.70 | 1.64 | 1.71 | 1.66 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,937,240K ÷ $1,437,210K
= 2.04
The financial leverage ratio for Universal Corporation has fluctuated over the past few quarters, ranging from 1.64 to 2.12. This ratio indicates the company's level of debt relative to its equity, with values above 1 indicating a higher proportion of debt in the capital structure.
From the trend observed, it appears that the financial leverage ratio has been varying around the 2.00 mark, suggesting a relatively consistent level of leverage over time. However, there have been some deviations from this average, such as in Q1 2021 where the ratio dropped to 1.79 and in Q2 2022 when it decreased to 1.70.
Overall, the financial leverage ratio for Universal Corporation indicates a moderate level of leverage, which can be useful for enhancing returns but also poses risks in terms of financial stability and interest burden. It would be important for the company to maintain a balance between debt and equity to ensure sustainable growth and financial health.
Peer comparison
Mar 31, 2024