Under Armour Inc C (UA)

Cash conversion cycle

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	118.10	124.12	112.06
Days of sales outstanding (DSO)	days	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	59.03	51.31	52.07
Number of days of payables	days	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	63.01	78.07	48.32
Cash conversion cycle	days	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	114.12	97.37	115.82

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 few quarters, indicating varying efficiency in managing its working capital. The cycle represents the time it takes for a company to convert its raw materials into cash received from sales.

In the most recent quarter, as of March 31, 2024, the cash conversion cycle stood at 104.90 days, which indicates that it takes the company approximately 105 days to convert its investments in raw materials into cash received from sales and then reinvest that cash back into raw materials.

The trend over recent quarters shows that the company's cash conversion cycle has been on the higher side, with peaks in September 2020 (129.12 days) and September 2019 (114.12 days). This suggests that Under Armour Inc C may be facing challenges in efficiently managing its operating cycle, potentially resulting in increased working capital requirements and liquidity constraints.

It is essential for the company to focus on optimizing its inventory management, accounts receivable collection, and accounts payable payment processes to shorten the cash conversion cycle. This could improve cash flow, reduce the need for external financing, and enhance overall financial performance and stability.