Ratio Analysis: Under Armour, Inc (UA)

Calculation
Liqudity Ratios Formula Industry Norm Comments
2014 2013
Current Ratio Current Assets / Current Liabilities 1,549,000/421,627= 3.67 1,128,811/426,630= 2.65 2.1 Excellent
Quick Ratio Cash + AR / Current Liabilities (593,175+332,333)/421,627= 2.20 (347,489+248,329)/426,630= 1.40 0.8 Excellent
Average Collection Period AR / Daily Credit Sales 332,333/(3,084,370/360)= 38 Days 248,329/(2,332,051/360)= 38 Days 39 Days Stable But Could Improve
AR Turnover Credit Sales / AR 3,084,370/332,333= 9.28 Times 2,332,051/248,329= 9.39 Times 9.3 Times Stable But Could Improve
Inventory Turnover Cost of Good Sold / Inventory 1,572,164/536,714= 2.93 Times 1,195,381/469,006= 2.55 Times 4.8 Times Needs Improvement

Calculation
Profitability Ratios Formula Industry Norm Comments
2014 2013
ROI Operating Income / Total Assets 353,955/2,095,083= 16.89% 265,098/1,577,741= 16.80% 6.6% Excellent
Operating Profit Margin Operating Income / Sales 353,955/3,084,370= 11.48% 265,098/2,332,051= 11.37% 4.6% Excellent
Total Assets Turnover Sales / Total Assets 3,084,370/2,095,083= 1.47 Times 2,332,051/1,577,741= 1.48 Times 2.1 Times Stable, Needs Improvement
Fixed Assets Turnover Sales / Net Fixed Assets 3,084,370/305,564= 10.09 Times 2,332,051/223,952= 10.41 Times 13.4 Times Needs Improvement

Calculation
Financing Ratios Formula Industry Norm Comments
2014 2013
Debt Ratio Total Debt / Total Assets (421,627+255,250)/2,095,083= 32.31% (426,630+47,951)/1,577,741= 30.17% 58.5% Slowly Moving Up
Times Interest Earned Operating Income / Interest Expense 353,955/5,335= 66.35 Times 265,098/2,933= 90.38 Times 6.2 Times Excellent

Calculation
Return & Shareholders Ratios Formula Industry Norm Comments
2014 2013
ROE Net Income / Total Equity 208,042/(2,095,083-744,783)= 15.41% 162,330/(1,577,741-524,387)= 15.41% 18.4% Needs Improvement
P/E Stock Price/ Ending Per Share 68.88 68.88 16.74 Excellent

Maryam Ahmadi FIN 301 A