Under Armour Inc A (UAA)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021	Mar 31, 2021
Cost of revenue	US$ in thousands	3,071,630	3,254,300	2,821,970	2,821,970	2,314,570
Payables	US$ in thousands	483,731	649,116	613,307	613,307	575,954
Payables turnover		6.35	5.01	4.60	4.60	4.02

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,071,630K ÷ $483,731K
= 6.35

The payables turnover ratio for Under Armour Inc A has shown an increasing trend over the past five years, indicating that the company has been able to efficiently manage its accounts payable. The ratio has steadily improved from 4.52 in 2019 to 6.35 in 2024. This implies that, on average, Under Armour Inc A is able to turn over its accounts payable approximately 6.35 times a year, demonstrating a shorter payment cycle and potentially favorable liquidity management.

The increasing trend in payables turnover suggests that the company is paying its suppliers in a more timely manner, which may strengthen relationships with vendors and possibly lead to favorable credit terms. Additionally, a higher payables turnover ratio can indicate effective working capital management and efficient control over cash flow.

Overall, the consistent improvement in the payables turnover ratio for Under Armour Inc A reflects positively on the company's ability to manage its accounts payable effectively and optimize its working capital utilization.