Under Armour Inc A (UAA)

Liquidity ratios

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
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
Quick ratio 1.06 1.00 1.06 0.91 1.39 1.18 1.14 0.96 1.08 1.03 1.12 1.19 1.32 1.54 1.47 1.46 1.66 1.45 1.15 1.02
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

The current ratio of Under Armour Inc A has shown a fluctuating but generally positive trend over the past few years, indicating the company's ability to meet its short-term obligations. The ratio has consistently been above 1, with values ranging from 1.73 to 2.56. This suggests that the company has more than enough current assets to cover its current liabilities, providing a safety buffer.

On the other hand, the quick ratio reflects a company's ability to meet its short-term obligations without relying on the sale of inventory. Under Armour Inc A's quick ratio has also shown variability, ranging from 0.91 to 1.66. Although there have been some fluctuations, overall, the quick ratio has remained above 1, indicating that the company has an acceptable level of liquid assets to cover its short-term liabilities.

The cash ratio, which is a more conservative measure of liquidity, has fluctuated as well, ranging from 0.45 to 1.15. This ratio measures the company's ability to pay off its current liabilities using only its cash and cash equivalents. Despite some variability, the cash ratio has generally been above 0.5, suggesting that Under Armour Inc A has maintained a sufficient level of cash to meet its short-term obligations.

In conclusion, the liquidity ratios of Under Armour Inc A, including the current ratio, quick ratio, and cash ratio, indicate that the company has generally maintained a strong liquidity position over the past few years, enabling it to meet its short-term financial commitments effectively.

Additional liquidity measure

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 conversion cycle days 117.78 100.21 117.91 96.40 104.90 90.92 118.75 111.51 107.67 99.41 90.21 79.81 78.12 62.17 88.36 78.12 106.84 93.48 129.12 128.75

The cash conversion cycle of Under Armour Inc A has shown fluctuations over the reporting periods. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From June 30, 2020, to December 31, 2021, the cash conversion cycle decreased significantly from 128.75 days to 62.17 days, indicating an improvement in the efficiency of converting inventory to sales and then into cash. This improvement suggests better inventory management and faster collection of receivables during this period.

However, from March 31, 2022, the cash conversion cycle started to increase again, reaching peak levels by September 30, 2023, at 118.74 days. This increase could be attributed to longer inventory holding periods, slower receivables collection, or delays in payment of accounts payable.

By December 31, 2024, the cash conversion cycle decreased to 100.21 days, showing some improvement compared to the peak levels seen in the previous periods. This improvement could be a result of streamlining operations, better inventory turnover, or effective management of working capital.

The cash conversion cycle is a critical metric for assessing a company's efficiency in managing its working capital and liquidity. Analyzing the trend in the cash conversion cycle can provide insights into the company's inventory management, accounts receivable collection, and payment practices, which are essential for maintaining healthy cash flows and overall financial health.