Under Armour Inc A (UAA)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 858,691 | 711,910 | 1,669,450 | 1,669,450 | 1,517,360 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 757,339 | 759,860 | 569,014 | 569,014 | 527,340 |
| Total current liabilities | US$ in thousands | 1,165,460 | 1,356,890 | 1,450,180 | 1,450,180 | 1,413,280 |
| Quick ratio | 1.39 | 1.08 | 1.54 | 1.54 | 1.45 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($858,691K
+ $—K
+ $757,339K)
÷ $1,165,460K
= 1.39
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that a company has sufficient liquid assets to cover its short-term liabilities.
Based on the data provided, the quick ratio for Under Armour Inc A has fluctuated over the past five years, ranging from 1.05 in 2019 to 1.54 in 2021. In the most recent period, as of March 31, 2024, the quick ratio was 1.39, representing a moderate level of liquidity.
The increase in the quick ratio from 2020 to 2021 suggests that the company improved its ability to meet short-term obligations with liquid assets during that period. However, the slight decrease from 2021 to 2024 indicates a potential decrease in short-term liquidity.
Overall, a quick ratio above 1 indicates that Under Armour Inc A has satisfactory liquidity to cover its short-term liabilities. However, investors and analysts should closely monitor any fluctuations in the quick ratio to assess the company's ongoing ability to meet its short-term financial obligations.
Peer comparison
Mar 31, 2024