Under Armour Inc C (UA)

Current ratio

		Mar 31, 2024	Dec 31, 2023	Mar 31, 2023	Dec 31, 2022	Mar 31, 2022
Total current assets	US$ in thousands	2,863,680	2,863,680	2,959,590	2,959,590	3,336,300
Total current liabilities	US$ in thousands	1,165,460	1,165,460	1,356,890	1,356,890	1,450,180
Current ratio		2.46	2.46	2.18	2.18	2.30

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,863,680K ÷ $1,165,460K
= 2.46

The current ratio of Under Armour Inc C has shown a generally positive trend over the past five years, starting at 1.90 in 2019 and increasing to 2.46 in the most recent quarter of March 31, 2024. This indicates that the company's ability to meet its short-term obligations with its current assets has been improving.

A current ratio above 1.0 typically suggests that a company is able to cover its short-term liabilities with its current assets. In this case, Under Armour Inc C has consistently maintained current ratios well above 1.0, indicating a strong liquidity position.

The current ratio compares the company's current assets to its current liabilities. A ratio above 2.0 indicates that the company has more than enough current assets to cover its current liabilities, providing a buffer for unexpected expenses or downturns in the business cycle. This suggests that Under Armour Inc C has a strong financial position in terms of liquidity, which could be beneficial for meeting its short-term obligations and pursuing growth opportunities.