Under Armour Inc C (UA)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	143.85	140.57	136.98	113.90	128.71	130.50	148.54	132.98	138.23	127.64	119.62	104.95	110.04	116.18	127.22	141.29	163.17	185.60	130.20	116.45
Days of sales outstanding (DSO)	days	42.26	48.86	44.88	48.48	43.76	50.12	43.24	46.98	42.38	48.02	43.84	36.54	48.32	42.84	52.93	43.02	65.27	46.02	48.87	49.11
Number of days of payables	days	85.90	71.51	85.40	57.48	81.54	61.87	80.34	72.73	83.85	88.29	83.87	79.33	70.00	80.90	73.31	90.83	99.32	102.87	57.80	80.68
Cash conversion cycle	days	100.21	117.93	96.46	104.90	90.93	118.75	111.44	107.23	96.76	87.37	79.58	62.17	88.36	78.12	106.84	93.48	129.12	128.75	121.26	84.88

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 143.85 + 42.26 – 85.90
= 100.21

The cash conversion cycle of Under Armour Inc C has exhibited fluctuations over the period in question. It indicates the time it takes for the company to convert its resources invested in inventory into cash flows from sales.

From December 31, 2019, to September 30, 2022, the cash conversion cycle increased gradually from 84.88 days to 87.37 days, indicating a longer period to convert inventory into cash. However, in December 31, 2022, the cycle spiked to 96.76 days, showing potential inefficiencies in managing inventory or receivables.

There was a subsequent decrease in the cash conversion cycle to 90.93 days by December 31, 2023, and it further decreased to 96.46 days by June 30, 2024. This trend may suggest improvements in inventory management or collection practices.

The most recent data point, December 31, 2024, shows the cash conversion cycle shortened to 100.21 days, indicating a slight increase in the time to convert resources into cash compared to the previous period.

Overall, the company needs to monitor its cash conversion cycle closely to ensure efficient utilization of resources and timely conversion into cash flows to support its business operations effectively.