Under Armour Inc A (UAA)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021
Cash and cash equivalents	US$ in thousands	501,361	858,691	711,910	1,669,450	1,669,450
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,109,140	1,165,460	1,356,890	1,450,180	1,450,180
Cash ratio		0.45	0.74	0.52	1.15	1.15

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($501,361K + $—K) ÷ $1,109,140K
= 0.45

The cash ratio for Under Armour Inc A has shown some fluctuations over the past few years. As of December 31, 2021, and March 31, 2022, the cash ratio stood at a healthy 1.15, indicating that the company had sufficient cash and near-cash assets to cover its current liabilities. However, there was a significant decrease in the cash ratio to 0.52 as of March 31, 2023, suggesting a potential liquidity challenge.

Subsequently, the cash ratio improved to 0.74 as of March 31, 2024, but still remained below the ideal ratio of 1. This indicates that the company may have faced liquidity difficulties during this period. As of March 31, 2025, the cash ratio further declined to 0.45, signaling a continued strain on the company's liquidity position.

Overall, the decreasing trend in the cash ratio over the years raises concerns about Under Armour Inc A's ability to meet its short-term obligations using its available cash and cash equivalents. Management should closely monitor and potentially take actions to improve the company's liquidity position to ensure financial stability and operational continuity.