Universal Corporation (UVV)
Solvency ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.05 | 2.10 | 2.14 | 2.15 | 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 |
Universal Corporation's solvency ratios indicate a consistently strong financial position over the reported periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00, suggesting that the company has no significant debt obligations relative to its assets and capital structure.
The Financial leverage ratio, which measures the proportion of the company's assets financed by debt, has shown a slight upward trend from 1.70 in June 2020 to 2.05 in March 2025. This indicates that the company has been gradually increasing its reliance on debt financing over the years but remains at a moderate level compared to equity.
Overall, Universal Corporation's solvency ratios suggest a stable and conservative financial strategy with minimal debt exposure, which is generally favorable for long-term financial stability.
Coverage ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.73 | 1.19 | 2.50 | 3.62 | 3.80 | 3.71 | 3.51 | 3.25 | 3.82 | 4.60 | 5.13 | 5.80 | 5.84 | 6.20 | 6.24 | 6.07 | 5.89 | 4.80 | 4.48 | 5.89 |
Universal Corporation's interest coverage ratio has shown a declining trend over the past few years, starting at 5.89 in June 2020 and decreasing to 0.73 by March 2025. This trend indicates a potential weakening ability of the company to cover its interest expenses with its operating income.
A higher interest coverage ratio is generally preferred as it signifies a better ability to meet interest payment obligations. On the other hand, a decreasing interest coverage ratio may raise concerns about the company's financial health and ability to handle debt obligations.
The significant decline in Universal Corporation's interest coverage ratio over the period suggests that the company may be experiencing challenges in generating sufficient operating income to cover its interest expenses. This situation could potentially lead to liquidity issues and may raise questions about the company's ability to meet its debt obligations in the future.
Investors and stakeholders should closely monitor this trend and assess the company's ability to improve its interest coverage ratio in order to ensure long-term financial sustainability.