Universal Corporation (UVV)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 216,980 | 208,122 | 193,077 | 180,224 | 185,085 | 178,660 | 166,389 | 156,124 | 152,987 | 162,098 | 160,747 | 146,520 | 141,776 | 110,120 | 97,055 | 125,492 | 126,822 | 155,620 | 154,764 | 161,456 |
| Interest expense (ttm) | US$ in thousands | 66,273 | 64,162 | 62,902 | 58,119 | 49,300 | 40,206 | 33,403 | 28,263 | 27,747 | 26,614 | 25,887 | 24,352 | 24,954 | 24,633 | 23,095 | 22,636 | 19,854 | 18,597 | 18,132 | 17,589 |
| Interest coverage | 3.27 | 3.24 | 3.07 | 3.10 | 3.75 | 4.44 | 4.98 | 5.52 | 5.51 | 6.09 | 6.21 | 6.02 | 5.68 | 4.47 | 4.20 | 5.54 | 6.39 | 8.37 | 8.54 | 9.18 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $216,980K ÷ $66,273K
= 3.27
Universal Corporation's interest coverage ratio has exhibited some fluctuations over the past several quarters. The interest coverage ratio, which measures the company's ability to meet its interest obligations on outstanding debt, has ranged from 3.07 to 9.18 in the provided data.
In general, a higher interest coverage ratio indicates that the company is more capable of servicing its debt. The trend in Universal Corporation's interest coverage ratio shows a peak in the range of 8.37 to 9.18 in the most recent quarters, signaling a strong ability to cover its interest expenses.
However, there are instances where the interest coverage ratio decreases to a lower range of 3.07 to 4.20, suggesting a relatively weaker ability to cover interest payments during those periods.
Overall, a consistent and improving trend in the interest coverage ratio is a positive sign for investors and creditors as it indicates that Universal Corporation is generating sufficient earnings to cover its interest expenses. Monitoring the interest coverage ratio over time can provide insight into the company's financial health and its ability to manage its debt obligations.
Peer comparison
Mar 31, 2024