Under Armour Inc A (UAA)
Cash conversion cycle
Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 113.90 | 132.98 | 104.95 | 141.29 | 116.45 |
Days of sales outstanding (DSO) | days | 48.48 | 46.98 | 36.54 | 43.02 | 49.11 |
Number of days of payables | days | 57.48 | 72.73 | 79.33 | 90.83 | 80.68 |
Cash conversion cycle | days | 104.90 | 107.23 | 62.17 | 93.48 | 84.88 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.90 + 48.48 – 57.48
= 104.90
The cash conversion cycle of Under Armour Inc A has fluctuated over the past five years. As of March 31, 2024, the company's cash conversion cycle stood at 104.90 days, showing a slight improvement from the previous year's 107.23 days. This indicates that the company took slightly less time to convert its investments in inventory and accounts receivable into cash during the most recent period.
Comparing the current cash conversion cycle to historical data, it is evident that the cycle has been volatile. The cycle was notably shorter at the end of 2021, at 62.17 days, suggesting a more efficient cash management process at that time. However, in the years prior to 2021, the cash conversion cycle exceeded 90 days, indicating a longer cash conversion process and potentially pointing to issues with inventory control and collection of receivables during those periods.
Overall, analyzing the trend in Under Armour Inc A's cash conversion cycle provides valuable insights into the company's efficiency in managing its working capital and liquidity. The recent improvement in the cycle may suggest enhanced operational effectiveness, but management should continue to monitor and optimize this metric to ensure sustainable cash flow performance.
Peer comparison
Mar 31, 2024