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.