Under Armour Inc C (UA)

Short-term

Turnover ratios

Under Armour Inc C's activity ratios provide insight into how efficiently the company is managing its assets and liabilities to generate sales.

1. Inventory Turnover: Under Armour's inventory turnover ratio has shown improvement over the years, increasing from 2.73 in December 2022 to 3.20 in March 2024 and then remaining stable at 3.20 in December 2023. This indicates that the company is able to sell its inventory more quickly, which is a positive sign of efficient inventory management.

2. Receivables Turnover: The receivables turnover ratio has also remained relatively stable, hovering around 7.50 over the years. This suggests that Under Armour is able to collect its accounts receivable effectively within a reasonable time frame, allowing the company to reinvest the cash back into the business.

3. Payables Turnover: The payables turnover ratio has shown a slight increase from 5.01 in December 2022 to 6.26 in March 2025. This indicates that Under Armour is taking longer to pay its suppliers, which could be beneficial for preserving cash flow and managing working capital effectively.

4. Working Capital Turnover: The working capital turnover ratio has shown an increasing trend, rising from 3.68 in December 2022 to 4.23 in March 2025. This indicates that the company is generating more sales per unit of working capital, which is a positive sign of efficient working capital management.

Overall, Under Armour Inc C's activity ratios suggest that the company is effectively managing its inventory, accounts receivable, payables, and working capital to support its sales growth and operational efficiency.

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Average number of days

Based on the data provided for Under Armour Inc C, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 133.50 days on December 31, 2022, to 113.90 days on March 31, 2024, before slightly increasing to 128.36 days on March 31, 2025.
- Decreasing DOH indicates that Under Armour Inc C has been managing its inventory efficiently, turning over its inventory quicker to avoid excess holding costs.
- However, the increase in DOH in the latest period could imply that the company may have experienced issues with inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- DSO remained relatively stable around 47 to 49 days over the periods analyzed.
- The consistent DSO suggests that Under Armour Inc C has been collecting its accounts receivable in a timely manner, which is a positive sign for its cash flow management.
- A low DSO indicates that the company efficiently converts its sales into cash.

3. Number of Days of Payables:
- The days of payables decreased significantly from 72.80 days on December 31, 2022, to 57.48 days on December 31, 2023, and remained stable around that level in the subsequent periods.
- A decreasing trend in the number of days of payables suggests that Under Armour Inc C may be paying its suppliers more quickly, which could potentially strain its cash flow.
- However, maintaining a balance in payables is important as it impacts the company's working capital management.

In conclusion, while Under Armour Inc C has shown efficiency in managing its inventory and collecting receivables, the decreasing trend in days of payables should be monitored to ensure a healthy balance between all components of working capital.

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Long-term

Long-term activity ratios provide insight into how efficiently Under Armour Inc C is utilizing its assets to generate sales over an extended period.

1. Fixed Asset Turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. With a fixed asset turnover ratio of 5.08 as of December 31, 2022, it indicates that Under Armour Inc C is generating $5.08 in revenue for every $1 invested in fixed assets. However, with no data provided for subsequent periods, we cannot assess the trend in the efficiency of fixed asset utilization over time.

2. Total Asset Turnover: The total asset turnover ratio measures the efficiency of the company in generating sales from all its assets. Under Armour Inc C maintained a relatively stable total asset turnover ratio of around 1.20 from December 31, 2022, to March 31, 2025. This implies that for every dollar invested in total assets, the company is generating approximately $1.20 in revenue.

Overall, based on the limited data provided, Under Armour Inc C seems to be efficiently utilizing its assets to generate sales, as indicated by the total asset turnover ratio. However, the lack of information for fixed asset turnover in subsequent periods prevents a comprehensive assessment of its efficiency in leveraging fixed assets for revenue generation.