Under Armour Inc A (UAA)

Cash ratio

Mar 31, 2025 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 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Cash and cash equivalents US$ in thousands 501,361 726,877 530,701 884,552 858,691 1,040,090 655,866 703,591 711,910 849,546 853,652 1,049,410 1,009,140 1,669,450 1,253,710 1,349,790 1,348,740 1,517,360 865,609 1,079,410
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 1,109,140 1,341,020 1,181,130 1,718,290 1,165,460 1,466,180 1,283,100 1,464,210 1,356,890 1,502,130 1,473,260 1,458,680 1,298,600 1,450,180 1,354,540 1,361,960 1,234,320 1,413,280 1,448,400 1,618,610
Cash ratio 0.45 0.54 0.45 0.51 0.74 0.71 0.51 0.48 0.52 0.57 0.58 0.72 0.78 1.15 0.93 0.99 1.09 1.07 0.60 0.67

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 of Under Armour Inc A fluctuated over the reported periods. The cash ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a stronger ability to meet short-term obligations.

Looking at the data provided:
- The cash ratio increased from December 2020 to March 2021, indicating an improvement in the company's liquidity position.
- The ratio remained relatively stable throughout 2021, hovering around 1.0, which suggests a consistent ability to cover short-term liabilities with cash.
- However, from December 2021 onwards, the cash ratio started declining, reaching the lowest point of 0.45 by September 30, 2024.

Overall, the downward trend in the cash ratio post-2021 may raise concerns about the company's liquidity position and its ability to meet short-term obligations with available cash reserves. Further analysis and monitoring of the company's cash management practices may be warranted to address any potential liquidity challenges.