Under Armour Inc A (UAA)
Payables turnover
Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cost of revenue | US$ in thousands | 3,071,630 | 3,254,300 | 2,821,970 | 2,314,570 | 2,796,600 |
Payables | US$ in thousands | 483,731 | 648,486 | 613,307 | 575,954 | 618,194 |
Payables turnover | 6.35 | 5.02 | 4.60 | 4.02 | 4.52 |
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.
Peer comparison
Mar 31, 2024