Under Armour Inc A (UAA)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	858,691	710,929	1,669,450	1,517,360	788,072
Short-term investments	US$ in thousands	—	981	—	—	—
Total current liabilities	US$ in thousands	1,165,460	1,359,280	1,450,180	1,413,280	1,422,010
Cash ratio		0.74	0.52	1.15	1.07	0.55

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($858,691K + $—K) ÷ $1,165,460K
= 0.74

The cash ratio of Under Armour Inc A has exhibited fluctuations over the past five years. As of March 31, 2024, the cash ratio stood at 0.74, representing an improvement from the previous year's ratio of 0.52. This indicates that the company had $0.74 of cash and cash equivalents for every $1 of current liabilities, highlighting a stronger liquidity position.

Comparing to historical data, the cash ratio was considerably higher at 1.15 as of December 31, 2021, indicating a robust liquidity position at that time. However, the ratio decreased slightly to 1.07 by the end of fiscal year 2020 before dropping to 0.55 as of December 31, 2019, signifying a decrease in liquidity levels in those periods.

Overall, analyzing the cash ratio trend for Under Armour Inc A shows variations in liquidity levels in recent years, with the most recent ratio of 0.74 suggesting a moderate liquidity position. It is important for the company to closely monitor its cash management and ensure sufficient liquidity to meet its short-term obligations.