Under Armour Inc A (UAA)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Cost of revenue (ttm)	US$ in thousands	2,689,566	2,792,486	2,872,006	2,987,266	3,071,746	3,131,034	3,199,006	3,240,906	3,254,296	3,158,068	3,027,964	2,925,341	2,889,194	2,821,967	2,778,839	2,768,112	2,443,870	2,314,572	2,364,126	2,356,983
Payables	US$ in thousands	429,944	657,152	562,582	697,983	483,731	699,431	542,309	714,189	649,116	738,740	747,330	669,203	560,331	613,307	532,919	613,566	490,860	575,954	643,315	664,288
Payables turnover		6.26	4.25	5.11	4.28	6.35	4.48	5.90	4.54	5.01	4.27	4.05	4.37	5.16	4.60	5.21	4.51	4.98	4.02	3.67	3.55

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,689,566K ÷ $429,944K
= 6.26

The payables turnover ratio measures how efficiently a company is managing its trade credit obligations by evaluating how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio indicates that a company is paying its suppliers more frequently.

Analyzing the payables turnover of Under Armour Inc A from June 2020 to March 2025, we observe fluctuations in the ratio. The ratio increased from 3.55 in June 2020 to a peak of 6.35 in March 2024, suggesting that the company was managing its accounts payable more effectively. This improvement may indicate that Under Armour Inc A was either negotiating better payment terms with suppliers or managing its working capital more efficiently.

However, the ratio dropped to 4.25 by December 2024, implying a potential slowdown in the rate at which the company was settling its payables. The absence of data for March 2025 makes it challenging to determine the most recent trend.

Overall, the varying payables turnover ratios of Under Armour Inc A reflect changes in its payment practices and relationships with suppliers over the analyzed period. It is essential for stakeholders to monitor this ratio continuously to assess the company's liquidity, supplier relationships, and operational efficiency.