Under Armour Inc A (UAA)

Short-term

Turnover ratios

Inventory turnover is a measure of how effectively a company manages its inventory. A higher turnover ratio indicates that the company is selling its inventory more frequently. For Under Armour Inc A, the inventory turnover ratio has fluctuated over the years, ranging from 2.74 to 3.48. The decreasing trend in inventory turnover from 2023 to 2025 may suggest that the company is experiencing challenges in efficiently selling its inventory.

Receivables turnover measures how efficiently a company collects cash from its credit sales. A higher turnover ratio indicates that the company is collecting its receivables more quickly. Under Armour Inc A has seen a declining trend in receivables turnover from 2021 to 2025, dropping from 9.99 to 7.64. This may indicate that the company is taking longer to collect payments from its customers, potentially impacting its cash flow.

Payables turnover reflects how effectively a company pays its suppliers. A higher turnover ratio suggests that the company is paying its suppliers more quickly. Under Armour Inc A's payables turnover has shown an increasing trend from 2021 to 2025, rising from 4.60 to 6.26. This indicates that the company is taking longer to pay its suppliers, which could be advantageous in managing its cash flow but may strain supplier relationships.

Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. A higher turnover ratio indicates that the company is effectively using its working capital. Over the years, Under Armour Inc A has shown variable performance in working capital turnover, with ratios ranging from 3.01 to 4.23. The increasing trend in working capital turnover from 2023 to 2025 suggests that the company is becoming more efficient in generating sales with its existing working capital.

Overall, the trends in these activity ratios for Under Armour Inc A provide valuable insights into the company's management of its inventory, receivables, payables, and working capital. Monitoring these ratios over time can help identify areas where the company may need to improve its operational efficiency.

---

Average number of days

Under Armour Inc A's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the company's efficiency in managing its operating cycle and working capital.

1. Days of Inventory on Hand (DOH):
- The company had a consistent level of inventory on hand, averaging around 105 days in December 2021 and March 2022.
- However, there was a significant increase in DOH to 133.29 days by March 2023, indicating a potential buildup in inventory levels.
- The DOH decreased to 113.90 days by March 2024 but then increased again to 128.36 days by March 2025, suggesting potential challenges in managing inventory efficiently.

2. Days of Sales Outstanding (DSO):
- Under Armour Inc A maintained a relatively stable DSO around 36-37 days in December 2021 and March 2022, indicating a prompt collection of receivables from customers.
- There was a slight increase in DSO to 46.98 days by March 2023 and further increases to around 48 days by March 2024 and 2025, suggesting a potential slowdown in receivables collection.

3. Number of Days of Payables:
- The company managed its payables effectively, with the number of days averaging around 79 days in December 2021 and March 2022.
- There was a gradual decrease in the number of days of payables to 72.69 days by March 2023, indicating a potential improvement in managing supplier credit terms.
- By March 2024 and 2025, the number of days of payables further decreased to around 57-58 days, potentially indicating a more aggressive approach to managing payables.

Overall, while Under Armour Inc A maintained stable DSO and payables days, the increasing trend in inventory days may signal a need for the company to optimize its inventory management practices to enhance efficiency and working capital utilization.

---

Long-term

The fixed asset turnover ratio for Under Armour Inc A as of December 31, 2021, was 9.36, indicating that the company generated $9.36 in net sales for every dollar invested in fixed assets during that period. However, the data for subsequent periods (March 31, 2022, March 31, 2023, March 31, 2024, and March 31, 2025) is not available.

In terms of total asset turnover, the ratio was 1.14 on December 31, 2021, and remained stable at 1.14 on March 31, 2022. It then increased to 1.22 on March 31, 2023, before slightly decreasing to 1.20 on both March 31, 2024, and March 31, 2025.

Overall, the fixed asset turnover ratio for Under Armour Inc A was strong in December 31, 2021, indicating efficient utilization of fixed assets to generate sales. The total asset turnover ratio also showed consistency and improvement over the years, suggesting effective management of total assets to generate revenue. However, further analysis and comparison with industry benchmarks in the subsequent periods would be necessary to assess the company's long-term activity efficiency more comprehensively.