Under Armour Comparative Analysis Michael Personius

Under Armour

  • Drops in Cash and Current Assets in Relation to Total Assets
  • Investing in new projects in cash
  • Nike is more efficient- Net income makes up 10% of revenue compared to Under Armour's 6%
  • Equity makes up 60% of Total Assets, compared to Nike's roughly 60% and Columbia's 77%

Under Armour Strengths

  • Recent expansion into Chinese Market
  • Consistent Revenue Growth
  • Popularity of key sponsor athletes that increase sales like Stephen Curry and Tom Brady

Under Armour Weaknesses

  • Recent stock drop from below expectation quarter
  • CFO resigned
  • Under Armour is not as efficient as Nike when comparing Net Income in relation to Revenues

Future

  • Lots of recent uncertainties as shown by the stock drop
  • Below expectations from last quarter
  • New Chinese market

The Short-term prediction is uncertainty, but long-term prediction would show promise with recent investments

Returns

  • ROA: Averages around 9%
  • ROCE: 24% (EBIT/Total Stockholder Equity)

Who controls Under Armour?

With 60% of Total Assets in Equity and Under Armour's policy to not take on debt, it is clear that Stockholders hold the majority of Financial Leverage

Credits:

Created with images by PublicDomainPictures - "achievement bar business" • NeuPaddy - "man board drawing" • marcelabr - "glass broken crack" • theNerdPatrol - "back to the future burnside brewery square" • stevepb - "calculator calculation insurance"

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