To help you understand and compare the performance of two companies in the same industry.

Go to the Columbia Sportswear Company Annual Report located in Appendix A and find the Consolidated Balance Sheets on page 663. Now access the 2016 Annual Report for Under Armour, Inc. To do this online, go to the company’s website at www.underarmour.com. At the very bottom of the page, look for “About Under Armour” and then click on Investor Relations. Next, click on Financials on the left-hand side of the page and then click on Annual Report & Proxy. Now, look for the link to download the 2016 annual report. The Consolidated Balance Sheet is located on page 57.

Columbia Sportswear Company and Under Armour, Inc., are in the same industry: manufacturing and selling sportswear. It is helpful to compare a company’s financial data against those of other companies in their industry.

Requirement

Look at the data from the Consolidated Balance Sheets at December 31, 2016, for each of the companies. Which company’s stockholders have a higher claim to their company’s assets? To find out, divide the total stockholders’ equity for each company by its total liabilities and stockholders’ equity. For Columbia Sportswear, use the “Total Columbia Sportswear Company shareholders’ equity” amount, which does not include an item titled “Non-controlling interest.”