Under Armour Inc C (UA)

The liquidity ratios of Under Armour Inc C, as indicated by the current ratio, quick ratio, and cash ratio, have shown varying trends over the reporting periods.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been at healthy levels above 2, indicating a strong liquidity position. However, there was a slight decrease in the current ratio from June 30, 2024, to September 30, 2024, and a notable decline to 1.73 by June 30, 2024, which could signal a potential liquidity concern.

- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. The quick ratio has also demonstrated a strong liquidity position above 1 for most reporting periods, although it experienced a dip below 1 in some quarters. Notably, the quick ratio dropped to 0.91 by June 30, 2024, which may raise concerns about the company's ability to quickly cover its short-term obligations without relying on inventory.

- The cash ratio, which indicates the proportion of a company's current assets held in cash or cash equivalents, has generally shown a decreasing trend over the reporting periods. While the cash ratio was initially above 1 in some periods, it gradually declined to below 1 by June 30, 2024. This suggests that Under Armour Inc C may have become less liquid in terms of holding cash reserves relative to its current liabilities.

In summary, the liquidity ratios of Under Armour Inc C have exhibited fluctuations, with the current ratio mostly above 2, indicating good liquidity, the quick ratio occasionally dropping below 1, and the cash ratio declining over time, which may raise concerns about the company's ability to meet its short-term obligations with available cash reserves. It would be important to closely monitor these ratios to ensure adequate liquidity management in the future.

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Additional liquidity measure

The cash conversion cycle of Under Armour Inc C has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The trend indicates the time it takes for the company to convert its resources invested in inventory back into cash flows from sales.

Initially, from June 30, 2020, to December 31, 2021, the cash conversion cycle decreased steadily from 128.75 days to 62.17 days. This improvement suggests that the company managed its inventory efficiently and collected receivables promptly during this period.

However, from March 31, 2022, to September 30, 2024, the cash conversion cycle increased, reaching a peak of 117.92 days on September 30, 2024. This rise could indicate potential issues with inventory management, sales collection policies, or extended payment cycles from customers.

Finally, there was an abrupt decrease to 0.00 days on March 31, 2025, which could be due to various reasons, such as a change in reporting practices or significant improvements in working capital management.

Overall, monitoring the cash conversion cycle is crucial for evaluating a company's operational efficiency and liquidity management. The fluctuations in Under Armour Inc C's cash conversion cycle highlight the importance of continuous monitoring and potential areas for improvement in managing inventory, receivables, and payables.