Purpose: To help you understand and compare the performance of two companies in the same industry.
Find the Columbia Sportswear Company Annual Report located in Appendix A and go to the Financial Statements starting on page 740. Now access the 2010 Annual Report for Under Armour, Inc., from the Internet. For instructions on how to access the report online, see the Industry Analysis in Chapter 1. The company's Financial Statements start on page 45.

Requirement
1. Calculate the debt ratio for both companies for 2010 and 2009. Generally speaking, what does a debt ratio tell you? Specifically, what does the difference between the debt ratios for these two companies for the two years tell you?