Under Armour Inc C (UA)

Inventory turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 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	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	3,071,506	3,130,914	3,199,376	3,244,712	3,254,296	3,215,559	3,089,611	2,912,273	2,821,967	2,778,839	2,768,112	2,443,870	2,314,572	2,364,126	2,356,983	2,635,920	2,796,599	2,801,654	2,839,865	2,850,732
Inventory	US$ in thousands	958,495	1,104,030	1,143,870	1,320,470	1,185,660	1,217,780	1,080,420	954,394	811,410	837,740	881,117	851,829	895,974	1,056,840	1,198,510	940,236	892,258	906,544	965,711	875,252
Inventory turnover		3.20	2.84	2.80	2.46	2.74	2.64	2.86	3.05	3.48	3.32	3.14	2.87	2.58	2.24	1.97	2.80	3.13	3.09	2.94	3.26

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,071,506K ÷ $958,495K
= 3.20

Inventory turnover is a key financial ratio that measures how many times a company's inventory is sold and replaced within a specific time period. A higher inventory turnover ratio generally indicates that a company is managing its inventory efficiently, while a lower ratio may suggest potential issues such as overstocking or slow-moving inventory.

Based on the data provided for Under Armour Inc C, the inventory turnover ratio has fluctuated over the past few years. It was relatively high at 3.20 as of March 31, 2024, indicating that the company was able to sell and replace its inventory more than three times during that period. This could be a positive sign of effective inventory management.

Looking at historical trends, the inventory turnover ratio has shown some variability, with fluctuations between 1.97 and 3.48 over the past few years. Investors and analysts may want to further investigate the reasons behind these fluctuations, as they could be influenced by factors such as seasonal variations, changes in consumer demand, or supply chain disruptions.

It is important for Under Armour Inc C to closely monitor its inventory turnover ratio and ensure that it remains at an optimal level to maximize profitability and efficiency in its operations. Additionally, comparing this ratio to industry benchmarks and competitors can provide further insight into the company's inventory management performance.