Under Armour Ratio Analysis
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I am unsure how to get started and how to enter this information into Excel I need some help on this assignment and four more after this one. Thank you
Under Armour has been chosen from the NYSE or the NASDAQ. For your selected company, identify and download the most recent financial statements for the last three to five years, to include the following:
Balance sheet
Income statement
Per share data
Tasks:
Complete the following tasks and submit your report by the end of the week:
Identify the predominant industry in which your company operates. Find the industry averages for that industry for the following ratios:
Current ratio
Debt ratio
Quick ratio
Debt-equity ratio
Total asset turnover
Profit margin
Inventory turnover
Return on assets
Receivables turnover
Return on equity
Calculate as many of the listed ratios for your selected company as possible using the financial statements you acquired.
Conduct a trend analysis for the last three to five years. What trends can you identify? What do they indicate?
Compare the ratios for the last common year to the industry averages. What conclusions can you draw regarding your company's performance? What are your company's strengths and weaknesses?
Identify the changes that need to be made by the company to improve its performance, as compared to the industry, on the basis of the ratios.
Conduct a DuPont analysis for your selected company. What conclusions can you draw for improving your company's performance on the basis of this analysis?
Submission Details:
Present the numerical data and calculations in a Microsoft Excel sheet and write the analyses in a Microsoft Word document.
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Solution Summary
Under Armour trend analysis is provided. The balance sheet, income statement and per share data is provided. The predominant industry in which your company operates is identified.
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Attached
TREND ANALYSIS
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Current Ratio
The current ratio decreased in 2015 even though there was slight decrease in current liabilities because of decrease in current assets. Amongst the last three years, year 2014 had highest current ratio at 3.67.
Debt Ratio
The debt ratio has been continuously increasing over last three years. It has been due to increase in debt, especially the long term debt. In the year 2014 the long term debt increased almost 5 times from the previous year. It may suggest that Under Armour Inc. is progressively becoming more dependent on debt to grow their business.
Quick Ratio
Quick ratio is lowest in 2015 when compared with last three years. It was mainly due to increased inventory levels in 2015. Inventory at December 31, 2015 increased 46% to $783 million compared with $537 million at December 31, 2014.
Debt-Equity Ratio
The highest debt-equity ratio is 69.88% for the industry. Till 2014, the ratio was acceptable, but in 2015 it has risen to 72% which is higher than the maximum permissible limit.
Total Asset Turnover
The asset turnover in 2015 has declined to 1.38 from 1.47 in 2014. In 2013 it was 1.48 and has been ...
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