Under Armour Inc C (UA)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.20 | 3.20 | 2.73 | 2.73 | 3.48 |
| Receivables turnover | 7.53 | 7.53 | 7.77 | 7.77 | 9.99 |
| Payables turnover | 6.35 | 6.35 | 5.01 | 5.01 | 4.60 |
| Working capital turnover | 3.36 | 3.36 | 3.68 | 3.68 | 3.01 |
The inventory turnover ratio for Under Armour Inc C has shown a fluctuating trend over the past five years, indicating the efficiency of the company in managing its inventory. The ratio has ranged from 2.58 to 3.48, with the latest figure reported at 3.20 as of March 31, 2024.
The receivables turnover ratio reflects the efficiency in collecting outstanding receivables. Under Armour Inc C has demonstrated a consistent performance in this aspect, with the ratio varying between 7.43 and 9.99 over the five-year period. The latest reported figure stands at 7.53 as of March 31, 2024.
The payables turnover ratio measures how quickly the company is paying its suppliers. Under Armour Inc C has shown an increasing trend in this ratio, from 4.02 to 6.35 over the past five years, indicative of a more efficient payment management system. The most recent data shows a payables turnover ratio of 6.35 as of March 31, 2024.
The working capital turnover ratio represents how effectively the company is utilizing its working capital to generate sales. Under Armour Inc C has experienced fluctuations in this ratio, ranging from 2.47 to 4.11 over the five-year period. As of March 31, 2024, the working capital turnover ratio stands at 3.36.
Overall, the activity ratios of Under Armour Inc C indicate varying levels of efficiency in managing inventory, receivables, payables, and working capital over the years, with some improvements noted in certain areas. It is essential for the company to continue monitoring and optimizing these ratios to enhance operational performance and drive business success.
Average number of days
| Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 113.90 | 113.90 | 133.50 | 133.50 | 104.95 |
| Days of sales outstanding (DSO) | days | 48.48 | 48.48 | 46.98 | 46.98 | 36.54 |
| Number of days of payables | days | 57.48 | 57.48 | 72.80 | 72.80 | 79.33 |
The activity ratios of Under Armour Inc C provide insights into its efficiency in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has fluctuated over the years, with a decreasing trend from 2019 to 2021, followed by an increase in 2023. In 2024, the DOH decreased to 113.90 days, indicating that the company is holding less inventory on hand compared to the previous year. This may suggest improved inventory management efficiency or increased sales.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding have been relatively stable, ranging from 36.54 days to 49.11 days over the period analyzed. In 2024, the DSO increased slightly to 48.48 days, indicating that it takes the company approximately 48 days to collect its accounts receivable. A higher DSO could suggest slower collections or potential credit risks.
3. Number of Days of Payables:
- The Number of Days of Payables has shown some variability over the years, with the company taking fewer days to settle its payables in 2024 compared to 2023. A decrease in the number of days of payables suggests that the company is paying its suppliers more quickly. This can have implications for cash flow management and supplier relationships.
Overall, analyzing these activity ratios together can provide a comprehensive view of Under Armour Inc C's supply chain management and working capital efficiency. Additional analysis and comparison with industry benchmarks may further enhance the interpretation of these ratios.
Long-term
| Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | 5.08 | — |
| Total asset turnover | 1.20 | 1.20 | 1.22 | 1.22 | 1.14 |
The fixed asset turnover ratio for Under Armour Inc C has shown a decreasing trend from 2019 to 2024, indicating that the company is generating less revenue from its fixed assets over time. However, the ratio still remains relatively high, suggesting efficient utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated over the same period. It increased from 2019 to 2021, reflecting a more effective use of the company's total assets to generate sales. However, in 2023 and 2024, the ratio slightly declined, indicating a potential decrease in efficiency in utilizing total assets to generate revenue.
Overall, it is essential for Under Armour Inc C to continuously monitor and improve its long-term activity ratios to ensure optimal utilization of both fixed and total assets in generating sales and maximizing profitability.