Under Armour Inc C (UA)
Cash conversion cycle
| Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 113.90 | 113.90 | 133.50 | 133.50 | 104.95 |
| Days of sales outstanding (DSO) | days | 48.48 | 48.48 | 46.98 | 46.98 | 36.54 |
| Number of days of payables | days | 57.48 | 57.48 | 72.80 | 72.80 | 79.33 |
| Cash conversion cycle | days | 104.90 | 104.90 | 107.67 | 107.67 | 62.17 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.90 + 48.48 – 57.48
= 104.90
The cash conversion cycle of Under Armour Inc C has fluctuated over the past five years. As of March 31, 2024, the company had a cash conversion cycle of 104.90 days, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. This figure is slightly lower than the previous year's figure of 107.23 days, indicating some improvement in the company's efficiency in managing its working capital.
Looking back at December 31, 2021, the cash conversion cycle was lower at 62.17 days, suggesting a more efficient conversion of inventory and accounts receivable into cash during that period. However, this efficiency decreased in December 31, 2020, when the cycle extended to 93.48 days, and again in December 31, 2019, when it was at 84.88 days.
Overall, fluctuations in the cash conversion cycle can be indicative of the company's effectiveness in managing its working capital and operations. It is important for Under Armour Inc C to continue monitoring and optimizing its processes to ensure a healthy cash conversion cycle, which can positively impact its liquidity and overall financial performance.
Peer comparison
Mar 31, 2024