Under Armour Inc C (UA)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 128.36 | 113.90 | 113.90 | 133.29 | 133.50 |
| Days of sales outstanding (DSO) | days | 47.77 | 48.48 | 48.48 | 46.98 | 46.98 |
| Number of days of payables | days | 58.35 | 57.48 | 57.48 | 72.69 | 72.80 |
| Cash conversion cycle | days | 117.78 | 104.90 | 104.90 | 107.58 | 107.67 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 128.36 + 47.77 – 58.35
= 117.78
The cash conversion cycle of Under Armour Inc C has been relatively stable over the years, ranging between 104.90 days to 117.78 days. This cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
A decrease in the cash conversion cycle signifies improvement in the efficiency of the company's working capital management, indicating a quicker turnaround in converting resources into cash. Conversely, an increase in the cycle could suggest delays in converting investments into cash.
Overall, a cash conversion cycle of around 104-118 days indicates that Under Armour Inc C takes approximately three to four months to convert its inputs into cash flows from sales, highlighting the importance of effective inventory and accounts receivable management to optimize its cash flow generation.
Peer comparison
Mar 31, 2025