Under Armour Inc C (UA)

Under Armour Inc C has shown a consistent improvement in its liquidity ratios over the years, indicating a stronger ability to meet its short-term obligations using its current assets.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has improved steadily from 1.90 in 2019 to 2.46 in 2024. This trend suggests that Under Armour Inc C's current assets are increasing relative to its current liabilities, improving its overall liquidity position.

Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also shown improvement over the years, increasing from 1.05 in 2019 to 1.39 in 2024. This indicates that the company has a healthy ability to meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also displayed an upward trend, increasing from 0.55 in 2019 to 0.74 in 2024. This implies that Under Armour Inc C has been able to build up its cash reserves relative to its short-term obligations.

Overall, the increasing values of the current ratio, quick ratio, and cash ratio suggest that Under Armour Inc C has been effectively managing its liquidity and is in a strong position to meet its short-term financial obligations.

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Additional liquidity measure

The cash conversion cycle of Under Armour Inc C has fluctuated over the past five years, indicating varying efficiency in managing its cash flow. The company's cash conversion cycle was 62.17 days at the end of 2021, reflecting a relatively efficient cash conversion process. However, this metric increased to 93.48 days at the end of 2020 and further to 107.23 days by the end of 2023, which suggests potential inefficiencies in working capital management during those periods.

It is worth noting that the cash conversion cycle improved to 104.90 days as of March 31, 2024, albeit remaining higher than the 2021 level. Overall, fluctuations in the cash conversion cycle imply that Under Armour Inc C may have experienced challenges in efficiently converting its investments in inventory into cash during certain periods, impacting its overall cash flow dynamics.