Compute the DuPont Disaggregation of ROE Refer to the balance sheets and income statement below for Under Armour Inc.

UNDER ARMOUR INC.

Consolidated Statements of Income For 12 Months Ended ($ in 000s) Dec. 31, 2015 Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,963,313 Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,057,766 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,905,547 Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 1,497,000 Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408,547 Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,628)

Other expense, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,234)

Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386,685 Provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,112 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 232,573 UNDER ARMOUR INC.
Consolidated Balance Sheet $ in 000s Dec. 31, 2015 Dec. 31, 2014 Assets Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . $ 129,852 $ 593,175 Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . 433,638 279,835 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 783,031 536,714 Prepaid expenses and other current assets. . . . . . . . . . . . . 152,242 87,177 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 52,498 Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,498,763 1,549,399 Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . 538,531 305,564 Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,181 123,256 Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,686 26,230 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,157 33,570 Other long-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,582 57,064 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,868,900 $2,095,083 Liabilities and Stockholders’ Equity Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,460 $ 210,432 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192,935 147,681 Current maturities of long term-debt . . . . . . . . . . . . . . . . . . 42,000 28,951 Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,415 34,563 Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478,810 421,627 Long-term debt, net of current maturities . . . . . . . . . . . . . . 352,000 255,250 Long-term line of credit, noncurrent. . . . . . . . . . . . . . . . . . . 275,000 —
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,868 67,906 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,678 744,783 Stockholders’ equity Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . 636,630 508,350 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,076,533 856,687 Accumulated other comprehensive loss . . . . . . . . . . . . . . . (45,013) (14,808)
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . 1,668,222 1,350,300 Total liabilities and stockholders’ equity. . . . . . . . . . . . . . . . $2,868,900 $2,095,083 Required

a. Compute return on equity (ROE).

b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage.

c. Calculate the profitability and productivity components of ROA.

d. Confirm the ROA from part

a. above with the full DuPont disaggregation: ROE = PM ???? AT ???? FL.