Under Armour Inc A (UAA)

Short-term

Turnover ratios

Inventory Turnover Ratio:
The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. In the case of Under Armour Inc A, the ratio has shown fluctuating trends over the analyzed periods, ranging from a low of 1.97 to a high of 3.48. The company has shown an improvement in managing its inventory efficiently, with a generally increasing trend, suggesting better sales and inventory management.

Receivables Turnover Ratio:
The receivables turnover ratio indicates how efficiently a company collects on its credit sales. Under Armour Inc A has maintained a relatively stable receivables turnover ratio, with values fluctuating between 5.59 and 9.99. The company has shown consistent collection efficiency over time, with the ratio generally staying within a moderate range.

Payables Turnover Ratio:
The payables turnover ratio reflects how quickly a company pays its suppliers. Under Armour Inc A has shown some variability in its payables turnover ratio, ranging from 3.55 to 6.35. The company has managed its payables efficiently, with the ratio fluctuating but generally indicating timely payment to suppliers over the analyzed periods.

Working Capital Turnover Ratio:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Under Armour Inc A has exhibited fluctuations in its working capital turnover ratio, ranging between 2.47 and 4.46. The company's ability to generate sales revenue relative to its working capital has shown improvement over time, with a general increasing trend in the ratio, indicating more efficient utilization of resources.

In summary, Under Armour Inc A has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the analyzed periods. The company has generally shown improvements in inventory turnover and working capital turnover, while maintaining stable receivables turnover and payables turnover ratios.

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Average number of days

The days of inventory on hand (DOH) for Under Armour Inc A have shown fluctuations over the years, indicating changes in the company's inventory management efficiency. The trend shows a general decrease from 2019 to 2021, with a significant drop from 185.60 days in June 2020 to 104.95 days in December 2021, indicating a more efficient inventory turnover during this period. However, there was a slight increase in DOH towards the end of 2024, reaching 143.85 days.

The days of sales outstanding (DSO) metric reflects the average number of days it takes for the company to collect its accounts receivable. Under Armour Inc A demonstrated a mix of ups and downs in DSO over the years, with a notable decrease from 65.27 days in September 2020 to 36.54 days in December 2021, suggesting an improvement in the company's receivables collection process. The DSO remained relatively consistent towards the end of 2024, ranging between 42.26 days and 48.86 days.

The number of days of payables indicates the average time it takes for the company to pay its suppliers. Under Armour Inc A's payable days have varied throughout the years, with fluctuations in the payment cycle. Notably, there was a significant decrease in payable days from 102.87 days in June 2020 to 57.48 days in March 2024, indicating a more efficient management of accounts payable during this period.

Overall, the analysis of the activity ratios for Under Armour Inc A suggests that the company has made improvements in its inventory management, accounts receivable collection, and accounts payable processes over the years, leading to potential enhancements in working capital management and operational efficiency.

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Long-term

Under Armour Inc A's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into how effectively the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio indicates the company's ability to generate revenue from its fixed assets. Generally, a higher Fixed Asset Turnover ratio reflects efficient utilization of fixed assets. Over the period from December 31, 2019, to December 31, 2024, Under Armour Inc A's Fixed Asset Turnover ratio improved steadily, starting at 6.65 and reaching a peak of 9.47 on June 30, 2022. However, there was a slight decline in the ratio to 8.17 by December 31, 2024. This trend suggests that the company was effectively utilizing its fixed assets to generate revenue, although there was a slight dip towards the end of the period.

2. Total Asset Turnover: This ratio measures the company's overall efficiency in using its total assets to generate sales. A higher Total Asset Turnover ratio indicates better asset utilization. Under Armour Inc A's Total Asset Turnover ratio fluctuated over the same period, starting at 1.09 on December 31, 2019, reaching a peak of 1.26 on September 30, 2022, and then slightly declining to 1.15 by December 31, 2024. Despite some fluctuations, the company generally showed effective utilization of its total assets to generate revenue throughout the period.

Overall, the trend in both Fixed Asset Turnover and Total Asset Turnover ratios for Under Armour Inc A indicates that the company was efficient in utilizing its assets to generate revenue over the long term. However, monitoring these ratios continuously is essential to ensure sustained efficiency in asset management and revenue generation.