Under Armour Inc C (UA)

Cash ratio

Mar 31, 2025 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 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Cash and cash equivalents US$ in thousands 726,877 530,701 884,552 858,691 1,040,090 655,866 703,591 711,910 849,546 853,652 1,049,410 1,009,140 1,669,450 1,253,710 1,349,790 1,348,740 1,517,360 865,609 1,079,410
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 1,341,020 1,181,130 1,718,290 1,165,460 1,466,180 1,283,100 1,464,210 1,356,890 1,502,130 1,473,260 1,458,680 1,298,600 1,450,180 1,354,540 1,361,960 1,234,320 1,413,280 1,448,400 1,618,610
Cash ratio 0.54 0.45 0.51 0.74 0.71 0.51 0.48 0.52 0.57 0.58 0.72 0.78 1.15 0.93 0.99 1.09 1.07 0.60 0.67

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $—K
= —

The cash ratio for Under Armour Inc C fluctuated over the period from June 30, 2020, to March 31, 2025. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

From June 30, 2020, to December 31, 2021, the cash ratio improved steadily, reaching a peak of 1.15, indicating the company had more than enough cash to cover its short-term obligations during this period. However, after December 31, 2021, the cash ratio started to decline, dropping to 0.45 by September 30, 2024.

The decreasing trend in the cash ratio from December 31, 2021, to September 30, 2024, suggests a potential liquidity concern for Under Armour Inc C. A declining cash ratio may indicate that the company is becoming less capable of meeting its short-term obligations solely from its cash reserves.

The abrupt drop in the cash ratio from a high of 1.15 to a low of 0.45 over the analyzed period may signal the need for the company to reassess its liquidity management strategies to ensure it can meet its financial obligations effectively in the future.