Under Armour Inc A (UAA)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.20 | 2.73 | 3.48 | 3.48 | 2.58 |
| Receivables turnover | 7.53 | 7.77 | 9.99 | 9.99 | 8.49 |
| Payables turnover | 6.35 | 5.01 | 4.60 | 4.60 | 4.02 |
| Working capital turnover | 3.36 | 3.68 | 3.01 | 3.01 | 2.47 |
Under Armour Inc A's inventory turnover has shown improvement over the years, indicating that the company is managing its inventory more efficiently. The current ratio of 3.20 as of March 31, 2024, is higher than in the previous years, which suggests that the company is selling its inventory faster.
On the other hand, the receivables turnover has been relatively stable over the years, showing that the company is efficient in collecting its receivables. A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly.
In terms of payables turnover, Under Armour Inc A has seen an increasing trend in recent years. A higher payables turnover ratio suggests that the company is taking longer to pay its suppliers, which could indicate a potential liquidity advantage.
The working capital turnover has fluctuated over the years, but the current ratio of 3.36 as of March 31, 2024, is slightly lower compared to the previous year. This indicates that the company is generating less revenue per dollar of working capital, which may warrant further investigation into the efficiency of the company's capital utilization.
Overall, Under Armour Inc A's activity ratios suggest that the company is managing its inventory and receivables well, but there may be room for improvement in terms of managing payables and working capital to enhance overall operational efficiency.
Average number of days
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 113.90 | 133.50 | 104.95 | 104.95 | 141.29 |
| Days of sales outstanding (DSO) | days | 48.48 | 46.98 | 36.54 | 36.54 | 43.02 |
| Number of days of payables | days | 57.48 | 72.80 | 79.33 | 79.33 | 90.83 |
The activity ratios provide insights into how efficiently Under Armour Inc A manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH):
- The company took, on average, about 114 days to sell its inventory in March 2024, which improved from the previous year.
- Compared to 2020 and 2019, the inventory turnover has increased, indicating better inventory management efficiency.
- Under Armour Inc A might be managing its inventory more effectively, possibly through better forecasting or operational improvements.
2. Days of Sales Outstanding (DSO):
- The company collected receivables in about 48 days in March 2024, which increased slightly compared to the previous year.
- The trend shows that the collection period has been relatively stable over the years, with fluctuations within a certain range.
- Under Armour Inc A may have consistent credit policies or effective collections processes in place.
3. Number of Days of Payables:
- Under Armour Inc A took approximately 57 days to pay its suppliers in March 2024, indicating a slight improvement in payment efficiency compared to the previous year.
- The trend in payables days shows fluctuation over the years, possibly due to changes in payment terms or supplier relationships.
- The company appears to be managing its payables in a manner that balances cash flow needs with supplier relationships.
Overall, the activity ratios suggest that Under Armour Inc A has made improvements in managing inventory, collecting receivables, and paying suppliers efficiently. Further analysis and comparison with industry benchmarks could provide more insights into the company's operational effectiveness.
Long-term
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | 9.36 | — |
| Total asset turnover | 1.20 | 1.22 | 1.14 | 1.14 | 0.89 |
The long-term activity ratios of Under Armour Inc A provide insights into how effectively the company is utilizing its fixed assets and total assets to generate revenue over the years analyzed.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures the efficiency of the company in generating sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
- Under Armour Inc A's fixed asset turnover has fluctuated over the years, ranging from a high of 9.36 in December 2021 to a low of 6.65 in December 2019. This indicates some variability in the company's efficiency in utilizing its fixed assets to generate sales.
- The highest fixed asset turnover of 9.36 in December 2021 suggests that the company was particularly efficient in that period in generating sales from its fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's ability to generate sales from its total assets. A higher total asset turnover ratio implies that the company is efficiently utilizing all its assets to generate revenue.
- Under Armour Inc A's total asset turnover has also varied over the years, with a high of 1.22 in March 2023 and a low of 0.89 in December 2020. This indicates some fluctuations in the company's overall efficiency in generating sales from its total assets.
- The highest total asset turnover of 1.22 in March 2023 suggests that the company was particularly effective in that period in using its total assets to generate revenue.
Overall, the analysis of Under Armour Inc A's long-term activity ratios indicates that the company has demonstrated varying levels of efficiency in utilizing its fixed assets and total assets to generate sales over the years evaluated. It is important for the company to maintain a consistent focus on improving asset utilization to drive revenue growth and profitability in the long term.