Under Armour Inc A (UAA)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,701,880 | 5,903,640 | 5,683,470 | 5,683,470 | 4,474,670 |
| Total current assets | US$ in thousands | 2,863,680 | 2,959,590 | 3,336,300 | 3,336,300 | 3,222,980 |
| Total current liabilities | US$ in thousands | 1,165,460 | 1,356,890 | 1,450,180 | 1,450,180 | 1,413,280 |
| Working capital turnover | 3.36 | 3.68 | 3.01 | 3.01 | 2.47 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,701,880K ÷ ($2,863,680K – $1,165,460K)
= 3.36
The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio typically suggests better efficiency in utilizing its current assets to drive sales.
Based on the data provided, Under Armour Inc A's working capital turnover has fluctuated over the past five years. The trend shows some variations, with the ratio declining from 4.11 in 2019 to 2.47 in 2020, then increasing to 3.01 in 2021, and further rising to 3.71 in 2023 before dropping to 3.36 in 2024.
The company's working capital turnover ratio indicates that, on average, Under Armour Inc A generated sales revenue equivalent to 3.36 times its working capital in 2024. Although the ratio decreased slightly from the previous year, the company has maintained a relatively stable efficiency in converting its working capital into sales revenue.
Further analysis and comparison with industry peers may be necessary to assess whether Under Armour Inc A's current working capital turnover ratio is considered competitive within the industry and to identify potential areas for improvement in working capital management.
Peer comparison
Mar 31, 2024