Under Armour Inc C (UA)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,071,630	3,254,300	2,821,970	2,314,570	2,796,600
Payables	US$ in thousands	483,731	648,486	613,307	575,954	618,194
Payables turnover		6.35	5.02	4.60	4.02	4.52

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.