Under Armour Inc A (UAA)

Cash conversion cycle

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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 143.85 140.57 136.98 113.90 128.71 130.50 148.54 132.98 138.23 127.64 119.62 104.95 110.04 116.18 127.22 141.29 163.17 185.60 130.20 116.45
Days of sales outstanding (DSO) days 42.26 48.86 44.88 48.48 43.76 50.12 43.24 46.98 42.38 48.02 43.84 36.54 48.32 42.84 52.93 43.02 65.27 46.02 48.87 49.11
Number of days of payables days 85.90 71.51 85.40 57.48 81.54 61.87 80.34 72.73 83.85 88.29 83.87 79.33 70.00 80.90 73.31 90.83 99.32 102.87 57.80 80.68
Cash conversion cycle days 100.21 117.93 96.46 104.90 90.93 118.75 111.44 107.23 96.76 87.37 79.58 62.17 88.36 78.12 106.84 93.48 129.12 128.75 121.26 84.88

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 143.85 + 42.26 – 85.90
= 100.21

The cash conversion cycle of Under Armour Inc A reflects the number of days it takes for the company to convert its investments in inventory and receivables back into cash. Analyzing the data provided, we can observe fluctuations in the cash conversion cycle over the specified time period.

From December 31, 2019, to September 30, 2021, the cash conversion cycle exhibited some volatility, reaching its peak at 129.12 days on September 30, 2020, and then gradually decreasing to 78.12 days on June 30, 2021. This suggests variability in the company's efficiency in managing its inventory and accounts receivable during this period.

Subsequently, from December 31, 2021, to December 31, 2024, there was a relatively more stable trend in the cash conversion cycle, with fluctuations occurring within a narrower range. The cycle reached its lowest point at 62.17 days on December 31, 2021, indicating improved efficiency in converting investments into cash. However, the cycle increased to 117.93 days on September 30, 2024, which may suggest challenges in managing working capital effectively during that period.

Overall, monitoring the cash conversion cycle is crucial for evaluating the company's operational efficiency and liquidity management. A shorter cycle indicates a more efficient use of cash resources, while a longer cycle may signify potential liquidity issues or inefficiencies in the company's operations.