Under Armour Inc A (UAA)

Current 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
Total current assets	US$ in thousands	2,329,100	2,690,990	2,569,740	2,967,990	2,863,680	3,122,820	2,871,760	2,984,220	2,959,590	3,116,600	3,079,400	3,000,090	2,832,820	3,336,300	3,127,940	3,143,180	3,157,720	3,222,980	2,973,340	3,089,010
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
Current ratio		2.10	2.01	2.18	1.73	2.46	2.13	2.24	2.04	2.18	2.07	2.09	2.06	2.18	2.30	2.31	2.31	2.56	2.28	2.05	1.91

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,329,100K ÷ $1,109,140K
= 2.10

The current ratio of Under Armour Inc A has shown fluctuations over the past few years based on the provided data. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 2, indicating a healthy liquidity position.

Specifically, the current ratio increased from 1.91 as of June 30, 2020, to a peak of 2.56 as of March 31, 2021, before gradually declining to 1.73 as of June 30, 2024. This indicates that the company may have faced challenges in managing its short-term obligations compared to its current assets during that period.

However, in the subsequent quarters, the current ratio recovered and stabilized around 2. This improvement suggests that Under Armour Inc A took steps to enhance its liquidity position, potentially through better management of current assets and liabilities.

The ratio dipping below 2 in some periods could signal potential liquidity concerns, as it may indicate the company has a lower ability to cover its short-term obligations with its current assets during those quarters. It would be important for Under Armour Inc A to monitor and manage its working capital effectively to ensure it can meet its short-term financial obligations consistently.