Under Armour Inc A (UAA)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021
Days of inventory on hand (DOH)	days	128.36	113.90	133.29	104.95	104.95
Days of sales outstanding (DSO)	days	47.77	48.48	46.98	36.54	36.54
Number of days of payables	days	58.35	57.48	72.69	79.33	79.33
Cash conversion cycle	days	117.78	104.90	107.58	62.17	62.17

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 128.36 + 47.77 – 58.35
= 117.78

The cash conversion cycle of Under Armour Inc A has shown fluctuations over the past years. As of December 31, 2021, and March 31, 2022, the company's cash conversion cycle stood at 62.17 days, indicating a relatively efficient cash management process. However, there was a notable increase in the cash conversion cycle to 107.58 days as of March 31, 2023, which suggests a potential delay in converting inventory into cash.

Subsequently, as of March 31, 2024, the cash conversion cycle decreased slightly to 104.90 days, indicating some improvement in the company's ability to manage its cash flow more effectively. Nonetheless, by March 31, 2025, the cash conversion cycle increased again to 117.78 days, reflecting a potential extension in the time it takes for Under Armour Inc A to convert its investment in raw materials into cash receipts from sales.

Overall, the fluctuating trend in Under Armour Inc A's cash conversion cycle suggests that the company may be facing challenges in efficiently managing its working capital, particularly in managing inventory levels and collecting receivables in a timely manner. Focusing on optimizing these processes could help enhance the company's overall cash flow management and financial performance in the future.