Universal Corporation (UVV)

Solvency ratios

	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
Debt-to-assets ratio	0.21	0.22	0.22	0.21	0.23	0.22	0.18	0.19	0.20	0.20	0.21	0.22	0.22	0.22	0.16	0.18	0.17	0.17	0.17	0.17
Debt-to-capital ratio	0.30	0.30	0.31	0.31	0.31	0.31	0.28	0.28	0.28	0.28	0.29	0.28	0.28	0.29	0.23	0.23	0.23	0.22	0.22	0.22
Debt-to-equity ratio	0.43	0.44	0.45	0.45	0.44	0.45	0.39	0.39	0.39	0.39	0.40	0.40	0.40	0.41	0.30	0.30	0.30	0.28	0.28	0.28
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

Universal Corporation's solvency ratios, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, provide insights into the company's ability to meet its financial obligations and the extent of its leverage.

Over the period analyzed, the debt-to-assets ratio has been relatively stable, ranging from 0.16 to 0.23, indicating that Universal Corporation has maintained a conservative level of debt compared to its total assets.

Similarly, the debt-to-capital ratio has also shown consistency, ranging from 0.22 to 0.31. This ratio reflects the proportion of debt in the company's capital structure and has remained steady, suggesting that Universal Corporation has not significantly altered its reliance on debt financing.

The debt-to-equity ratio, measuring the proportion of debt to shareholders' equity, has shown a similar trend, varying between 0.28 and 0.45. This indicates that Universal Corporation's capital structure has maintained a balance between debt and equity financing, with a slight increase in leverage observed over the period.

The financial leverage ratio, which indicates the company's ability to meet its long-term financial commitments, has fluctuated but generally remained within a reasonable range of 1.64 to 2.12. This suggests that Universal Corporation has managed its leverage effectively, with some fluctuations in specific periods.

Overall, the solvency ratios of Universal Corporation demonstrate a consistent and balanced approach to managing debt levels and financial leverage, which indicates a stable and well-structured financial position.

Coverage ratios

	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
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

The interest coverage ratio of Universal Corporation has shown a decreasing trend over the past few quarters. The ratio has declined from a high of 9.18 in the second quarter of 2019 to 3.27 in the first quarter of 2024. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time.

A lower interest coverage ratio may suggest that Universal Corporation is becoming less able to meet its interest obligations from its earnings. This could potentially raise concerns about the company's financial health and ability to service its debt in the future. Management should closely monitor this trend and take appropriate measures to improve the interest coverage ratio to maintain the confidence of investors and creditors.