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 Consolidated Financial Statements starting on page 663. Now go online and access the 2016 Annual Report for Under Armour, Inc. For instructions on how to access the report online, see the Industry Analysis in Chapter 1. The company’s financial statements start on page 57.

Requirement

Calculate the debt ratio for both companies for 2016 and 2015. In general, 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?