Under Armour Inc C (UA)
Payables turnover
| Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,071,630 | 3,071,630 | 3,254,300 | 3,254,300 | 2,821,970 |
| Payables | US$ in thousands | 483,731 | 483,731 | 649,116 | 649,116 | 613,307 |
| Payables turnover | 6.35 | 6.35 | 5.01 | 5.01 | 4.60 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,071,630K ÷ $483,731K
= 6.35
The payables turnover ratio for Under Armour Inc C has shown an increasing trend over the past five years, indicating that the company has been managing its accounts payable more efficiently. This ratio measures how many times during a period the company pays off its accounts payable on average.
The payables turnover ratio improved from 4.52 in 2019 to 6.35 in 2024, signaling that the company was able to pay off its suppliers more frequently in the most recent period. This implies that Under Armour Inc C is taking fewer days to pay its suppliers, which can be beneficial in terms of maintaining good relationships with its vendors.
Overall, the increasing trend in the payables turnover ratio suggests that Under Armour Inc C has been effectively managing its accounts payable, potentially optimizing its working capital and cash flow position.
Peer comparison
Mar 31, 2024