Under Armour Inc C (UA)

Based on the provided data for Under Armour Inc C, the liquidity ratios show the following trends:

1. Current Ratio:
- The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
- The current ratio remained relatively stable around 2.18 to 2.46 from 2022 to 2024, indicating that the company had sufficient current assets to cover its current liabilities during these periods.
- However, there was a slight decline in the current ratio to 2.10 as of March 31, 2025, which may suggest a potential decrease in the company's ability to meet short-term obligations with its current assets.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets.
- The quick ratio followed a similar trend as the current ratio, staying around 1.08 to 1.39 from 2022 to 2024.
- The quick ratio decreased to 1.06 as of March 31, 2025, possibly indicating a lower ability to meet short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio measures the company's ability to pay off its short-term liabilities using only its cash and cash equivalents.
- The cash ratio showed an increasing trend from 0.52 to 0.74 from 2022 to 2024, reflecting a stronger ability to cover short-term obligations with cash reserves.
- However, the cash ratio decreased to 0.45 as of March 31, 2025, suggesting a potential decrease in the company's capacity to settle immediate liabilities solely with available cash.

In summary, while the company maintained healthy liquidity levels over the years, the slight declines in the ratios as of March 31, 2025 may raise some concerns about its ability to meet short-term obligations. It would be important to monitor these ratios closely to ensure sufficient liquidity levels for ongoing operations and financial stability.

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Additional liquidity measure

The cash conversion cycle of Under Armour Inc C has shown a relatively stable trend over the past few years. It decreased slightly from 107.67 days as of December 31, 2022, to 104.90 days by December 31, 2023, and remained at the same level as of March 31, 2024. However, there was a noticeable increase in the cash conversion cycle to 117.78 days by March 31, 2025.

Overall, the company takes an average of around 106 to 108 days to convert its investments in inventory into cash receipts from its sales. This indicates that Under Armour Inc C may have some inefficiencies in managing its working capital, potentially impacting its liquidity and cash flow management. Further analysis of the individual components of the cash conversion cycle, including the days inventory outstanding, days sales outstanding, and days payable outstanding, would be beneficial in understanding the specific areas where improvements could be made.