Liquidity Ratios: 2013, 2014, and 2015
- Current Ratio: 2.79, 3.67, and 3.13
- Quick Ratio: 1.63, 2.40, and 1.49
- Strong Liquidity and Solvency in case of emergency*
Financial Leverage Ratios
- Under Armour has very low Debt to Total Assets, Equity, and Long-term Debt to Equity.
- Ratios in this section average around 0.5, 0.6, and 0.4 respectively over the three years.
- Leaves the door open for possible financing through debt.
Activity Ratios: Turnover
- Under Armour maintains good Inventory and Fixed Asset Turnover averaging around 5.2 and 8 over the last three years
- Although, Fixed Asset Turnover has dropped by 3 to 7 times in 2015 compared to 2013 and 2014 which are around 10 times.
- Another issue is that the Average Collection Period has gone up 7 days in 2015 from 33 days in both 2013 and 2014.
- Gross Profit Margin averaging at 49% over the last three years.
- There has been a slight downturn in 2015 causing all the ratios do drop by 1% point.
- Remains profitable overall.
The Future of Under Armour
Under Armour is a strong company that competes strongly against its competitors Nike and Adidas since going public in 2005.
Under Armour appears to be going through some bumps in 2015 based on drops in the Quick Ratio, Fixed Asset Turnover, Average Collection Period, and all of the Profitability Ratios.
Picture tells it all....
- *Under Armour Stock Dropped by 27% as of 5:11 Thursday.
- 4th Quarter reports of 2016 have come out and Under Armour just fell short in a couple financial areas, such as Revenue, EPS, and Sales growth.
- CFO resigned as well.