Under Armour Inc C (UA)

Payables turnover

		Mar 31, 2025	Mar 31, 2024	Dec 31, 2023	Mar 31, 2023	Dec 31, 2022
Cost of revenue	US$ in thousands	2,689,570	3,071,630	3,071,630	3,259,330	3,254,300
Payables	US$ in thousands	429,944	483,731	483,731	649,116	649,116
Payables turnover		6.26	6.35	6.35	5.02	5.01

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,689,570K ÷ $429,944K
= 6.26

Based on the provided data for Under Armour Inc C's payables turnover ratio, we observe the following trends:

- The payables turnover ratio has shown a consistent increase over the years, from 5.01 on December 31, 2022, to 6.26 on March 31, 2025.
- This indicates that the company is managing its accounts payable effectively, as a higher turnover ratio suggests that the company is paying its suppliers more frequently within a given period.
- An increasing payables turnover ratio may indicate that the company is efficiently managing its cash flow and working capital, potentially benefiting from favorable credit terms or vendor relationships.
- It is important to note that a very high payables turnover ratio could also suggest that the company is pushing its suppliers for extremely quick payment terms, which could strain relationships or harm the company's ability to negotiate favorable terms in the future.

In summary, the increasing trend in Under Armour Inc C's payables turnover ratio indicates efficient management of accounts payable and working capital, which can have positive implications for the company's financial health and liquidity position.