Under Armour Company Financial Analysis, Liquidity Ratios - 825 Words

Under Armour Company: Financial Analysis, Liquidity, Profitability & Solvency Ratios, Perry Ellis International etc. (Research Paper Sample) Content: UNDER ARMOUR COMPANYUnder Armour Company [Writers Name][Institutions Name] Under Armour CompanyUnder Armour Company is a public company founded in American devoted to the manufacture of casual wear. The company works in all continents and is listed on Stock Exchange in New York of the United States. Under Armour shares are regarded as one of the key share of New York Stock Exchange.Liquidity Ratios:These ratios assess the cash openness with the company in order to pay off the debts of the company. For the year 2014, the company has $ 3.67 in order to pay of every $1 of current liability of. However, the current ratio of the company has been reduced from the prior year by a low margin. By 2014, the company has about $ 2.40 in quick assets to pay every $ 1 of current liabilities. Ideally, the ratio should be fast above $ 1 to be proactive to unpredicted future circumstances. The ratio has been maintained by the company as the ratio has been reported as 1.55 for the year of 2013.Regarding the relationship of cash ratio of the company, the conclusion can be made that the company has uphold a cash ratio of $ 1.41, which has been enhanced as compared to the last year. However, for the year 2014, the company has about $3.67 to tackle its short term debts of every $1. Profitability Ratios:These ratios ascertain the use of assets by the company followed by control over the expenses of the company to ensure a normal rate of return.The companys gross profit margin for the year 2014 has been reported as 49% of sales. The operating margin has also been favorable for the company as it is 11.5% for the current year. Moreover the companys net profit margin is 6.75% for the current year.Talking about the return ratios, the conclusion can be made that the return on assets has been reported as 11.33% for the year. Secondly the return on equity of the company is also revealing favorable results as the company has reported 17.31% return for the current year. Regardi ng return on total capital, the company has produced a return of 14.65% on equity for the current year. Finally the company has reported a return of 15.37% on invested capital for the current year. Solvency Ratios:Solvency ratios reveal the companys future continuance of operations. Total Debt to Total Equity ratio has been reported as 21.05 for the current year by UA. Total Debt to Total Capital ratio of the UA for the current year has been reported as 17.39 for the current year. Moreover the ratio of Total Debt to Total Assets has been reported as 13.57 for 2014. Finally Long-Term Debt to Equity and Long-Term Debt to Total Capital have been reported as 18.90 and 15.62 for the current year.Regarding the result of the above ratio analysis the decision can be made that Under Armour has performed well in the year 2014. From an investor point of view the conclusion can be drawn that Under Armour is likely to maintain the ratios at an increasing pace (Marketwatch.com). The ranking of Un der Armour Inc. as per fortune 500 has been reported as 877 for the current year, which was lastly reported as 992 for the previous year. However as per Sportswear Brands Digital IQ Score the brand of company ranks as 7th for the current year. The major competitor of the company include bebe stores, inc, Carter's, Inc, Cherokee Inc, Delta Apparel, Inc, Oxford Industries, Inc, Quiksilver, Inc and Perry Ellis International etc.The three non-financial factors, ensuring the development and growth of the company are as follows.Under Armour offered to the Conference sponsored by Bank of America (BoA), and transmits detailed plan provided for under Armour for years to come. As could be expected, under Armour management will focus on growth as domestic and international. Fund reaches beyond the frame to realize that growth: new product line and new categories of shops articulate the spine of the expected growth. On the top of the list, under Armour is working to change its product mix and the consumer mix, in order to attract new cust...