UnderArmour Analysis
Financial Analysis
In order to fully assess Under Armour’s strategies in the market, an analysis of all the current financial data is conducted through various measures. These financial measures include profitability, liquidity, leverage and activity ratios. The data is retrieved from the financial statements of Under Armour Inc. for the year of 2011.
Profitability Ratios
Under Armour Profitability Ratios for 2011 (in 000s)
Calculations
Result
Gross profit margin
= (1472684 – 759848)/1472684
= 48.40%
Operating profit margin
= 162767/1472684
= 11.05%
Net profit margin
= 96919/1472684
= 6.58%
Total return on assets
= (96919 + 3841)/919210
= 10.96%
Net return on total assets
= 96919/919210
= 10.54%
Return on stockholders’ equity
= 96919/636432
= 15.23%
Liquidity Ratios
Under Armour Liquidity Ratios for 2011 (in 000s)
Calculations
Result
Current ratio
Current Assets/Liabilities N/A
N/A
Quick ratio
Current Assets/Liabilities N/A
N/A
Working capital
- Given
= $506,056
Leverage Ratios
Under Armour Leverage Ratios for 2011 in (000s)
Calculations
Result
Total debt-to-assets ratio
= 77724/919210
= 8.46%
Long-term debt-to-capital ratio
Long term debt N/A
N/A
Debt-to-equity ratio
= 77724/636432
= 12.21%
Long-term debt-to-equity ratio
Long term debt N/A
N/A
Times-interest-earned ratio
= 162767/3841
= 42.38
Cash flow coverage ratio
= 15218/3841
= 3.96
Activity Ratios
Under Armour Activity Ratios for 2011 in (000s)
Calculations
Result
Days of inventory
= 324409/(759848/365)
= 155.83
Inventory turnover
= 759848/324409
= 2.34
Average collection period
Accounts receivable N/A
N/A
Total assets turnover
= 1472684/919210
= 1.60
Present Strategy
Vision, Mission, and Objectives
Mission: “to make all athletes better through passion, design, and the relentless pursuit of innovation”
Determine opportunities to expand
In order to fully assess Under Armour’s strategies in the market, an analysis of all the current financial data is conducted through various measures. These financial measures include profitability, liquidity, leverage and activity ratios. The data is retrieved from the financial statements of Under Armour Inc. for the year of 2011.
Profitability Ratios
Under Armour Profitability Ratios for 2011 (in 000s)
Calculations
Result
Gross profit margin
= (1472684 – 759848)/1472684
= 48.40%
Operating profit margin
= 162767/1472684
= 11.05%
Net profit margin
= 96919/1472684
= 6.58%
Total return on assets
= (96919 + 3841)/919210
= 10.96%
Net return on total assets
= 96919/919210
= 10.54%
Return on stockholders’ equity
= 96919/636432
= 15.23%
Liquidity Ratios
Under Armour Liquidity Ratios for 2011 (in 000s)
Calculations
Result
Current ratio
Current Assets/Liabilities N/A
N/A
Quick ratio
Current Assets/Liabilities N/A
N/A
Working capital
- Given
= $506,056
Leverage Ratios
Under Armour Leverage Ratios for 2011 in (000s)
Calculations
Result
Total debt-to-assets ratio
= 77724/919210
= 8.46%
Long-term debt-to-capital ratio
Long term debt N/A
N/A
Debt-to-equity ratio
= 77724/636432
= 12.21%
Long-term debt-to-equity ratio
Long term debt N/A
N/A
Times-interest-earned ratio
= 162767/3841
= 42.38
Cash flow coverage ratio
= 15218/3841
= 3.96
Activity Ratios
Under Armour Activity Ratios for 2011 in (000s)
Calculations
Result
Days of inventory
= 324409/(759848/365)
= 155.83
Inventory turnover
= 759848/324409
= 2.34
Average collection period
Accounts receivable N/A
N/A
Total assets turnover
= 1472684/919210
= 1.60
Present Strategy
Vision, Mission, and Objectives
Mission: “to make all athletes better through passion, design, and the relentless pursuit of innovation”
Determine opportunities to expand