Company Name - Under Armour (UA)

Annual Report 2020 (and 2019, if needed) can be found on website as well as SEC website.

You should review the financial statements, footnotes, management's discussion and the analyst's information to answer the following items (you can set up your paper with 1. and put your answer; 2. put your answer; etc.) It doesn't have to be a formal looking format and there is not a page limit requirement. 1. a. Provide a brief background of the company, its products, business environment, the company's competitors, what market exchange it is traded on (such as NASDAQ), its ticker symbol and current market price (note for me the date you used). Please write in your own words the above information. I don't want you to regurgitate the information contained in the annual report. b. Read the management's analysis and discussion (could be several pages) and summarize at least 4 key points. Again, put this information in your own words. Be sure and cover different areas such as what's going on domestically versus internationally, or what are some of the problems/successes that the company has had during the past years. I mainly am looking to see that you spent time reading this section. It has a wealth of information about the company and will really help you get familiar with the company and its operations. Just remember that this information is somewhat biased. Please comment on the biases that are present in the management's discussion. Do you believe management is very objective or subjective in their discussion? 2. a. NOTE: for item 2. You can find details of vertical or common size" analysis by reading Chapter 11 on Financial Statement Analysis. For some reason the text decided to wait and discuss this topic in a later chapter. I also want you to prepare horizontal analysis. I describe the details of how to do this below. I believe you get a much better picture of the health of a company by taking away the $ amounts and focusing on the % changes. It's powerful because you can compare two companies that have vastly different s amounts by using %s results. Prepare a vertical analysis of the balance sheet and the income statement for all years presented (don't do the cash flow statement). Remember to use net sales as the common denominator for the income statement accounts and use total assets or total liabilities + total shareholders' equity for the balance sheet accounts. Note: This needs to be included in your final report. b. Prepare horizontal analysis of the balance sheet and income statement (not the cash flow statement) for all years presented in the annual report and use the earliest year presented as the base year. You will divide each line item of each subsequent year by the earliest year (base year). The base year will be 100% since you're dividing it by itself. You might want to set up a spreadsheet or table for the vertical and horizontal analyses. You will find that the company presents 3 years of income statements and 2 years of balance sheets. Note: This also needs to be included. 3. Study the results of your vertical and horizontal analysis on the income statement and balance sheet. In your own words, summarize at least two changes that you've found on each of these two statements (for a total of eight changes). Do you find that there is a positive correlation between the changes that you've noticed and what management talked about in the management's discussion section? Describe these correlations or lack thereof. 4. Calculate the following ratios for the most recent 2 years: A table might be appropriate for your ratios. Be sure and show me your calculations so I can give you partial credit. Also, please indicate where you obtained your information (10-k, Yahoo.com/finance, sec.gov etc.). Liquidity: current ratio, quick ratio b. Profitability: You may use ending asset or stockholder equity balances if you find that you don't have enough data to do averages (averages are calculated as beg + ending balance divided by 2). Refer to the text and my lectures: . Return on assets ii. Return on stockholders' equity iii. Operating income % a. 5. 6. Study your horizontal analysis for the accounts receivable account, the allowance for doubtful accounts (if any) and the sales account for the years presented. If sales are changing, are the accounts receivable also changing in the same direction? If not, can you determine why? Do you believe the company is having a looser credit policy? To help you answer these questions, calculate the following ratios for the most recent 2 years: i. Receivables turnover ii. Allowance % A/R (allowance/gross A/R) iii. Collection period Remember to indicate N/A for the allowance % A/R if the company does not disclose an allowance account and you can't calculate this ratio. Be sure to show your calculations so that I can give you partial credit. Also, please indicate where you have obtained your information (10-k, Yahoo Finance, etc.) Inventory costing: a. What is the inventory costing method b. Refer to your vertical and horizontal analysis. Is the change in cost of goods sold appropriate for the change in sales and the change in inventory over the years presented? Why or why not? Remember, management's discussion may give some insights. c. Calculate the following inventory ratios for the latest 2 years presented: i. Inventory turnover = COGS/Average inventory ii. Gross profit % (you may have to calculate the gross profit first) iii. Number of Days Sales in ending inventory or called Days in Inventory Again, be sure to show your calculations so I can give you partial credit. Also, please indicate where you obtained your numbers. Property, plant and equipment a. What depreciation method(s) is used? b. Study the changes in PPE over the years presented on the balance sheet along with the investing activities on the cash flow statement. Describe what changes are going on over the years presented. In other words, is the company buying more PPE? or selling off these productive assets? c. Calculate the following ratios for the most recent 2 years: Fixed asset turnover ii. % of property, plant, and equipment depreciated Be sure to show your calculations so I can give you partial credit. Again, please indicate where you obtained your numbers. 7. 8. 9. Liabilities a. What is the composition of the company's liabilities? Specifically, what major accounts make up current and noncurrent liabilities? You might show me a table of these major accounts. b. Calculate the following ratios for the most recent 2 years: Debt ratio (total liabilities/total assets) ii . Debt to equity = total liabilities/total stockholders' equity Be sure to show your calculations so I can give you partial credit. Again, please indicate where you obtained your numbers. Stockholders' Equity a. What types of stock does the company have available for issue? b. Describe any changes in the stockholders' equity stock accounts over the 2 most recent years presented. What do you believe are the reasons for these activities? C. Calculate the following ratios for the most recent 2 years: Earnings per share (you'll find the basic earnings per share on the income statement under net income) ii. Price/Earnings (PE ratio). Note: the market price should be the closing market price at the end of the company's fiscal year. Be sure and show your calculations so I can give you partial credit. Also, please indicate where you obtained your numbers. Tracking the stock price: You should go to the company's website or another website such as Yahoo.com/finance and look up your company's stock price history for the past year up to most recent date. Give me a brief description of this stock price history. One option is to include a screenshot of the history as part of your answer. Final review Review your ratio results, your analyses, management's discussion, analysts' information, etc. Highlight the company's past performance (strengths/weaknesses); please do not recite ratio results, etc. just summarize your findings and give me some indication of what the company's performance will be in the near future. Do you believe your analysis of the company's past performance to be a good predictor of the future? Please study the company's most recent quarterly earnings to help you answer this question. Would you recommend that we invest in the stock of this company? Why? 10. 11. You should review the financial statements, footnotes, management's discussion and the analyst's information to answer the following items (you can set up your paper with 1. and put your answer; 2. put your answer; etc.) It doesn't have to be a formal looking format and there is not a page limit requirement. 1. a. Provide a brief background of the company, its products, business environment, the company's competitors, what market exchange it is traded on (such as NASDAQ), its ticker symbol and current market price (note for me the date you used). Please write in your own words the above information. I don't want you to regurgitate the information contained in the annual report. b. Read the management's analysis and discussion (could be several pages) and summarize at least 4 key points. Again, put this information in your own words. Be sure and cover different areas such as what's going on domestically versus internationally, or what are some of the problems/successes that the company has had during the past years. I mainly am looking to see that you spent time reading this section. It has a wealth of information about the company and will really help you get familiar with the company and its operations. Just remember that this information is somewhat biased. Please comment on the biases that are present in the management's discussion. Do you believe management is very objective or subjective in their discussion? 2. a. NOTE: for item 2. You can find details of vertical or common size" analysis by reading Chapter 11 on Financial Statement Analysis. For some reason the text decided to wait and discuss this topic in a later chapter. I also want you to prepare horizontal analysis. I describe the details of how to do this below. I believe you get a much better picture of the health of a company by taking away the $ amounts and focusing on the % changes. It's powerful because you can compare two companies that have vastly different s amounts by using %s results. Prepare a vertical analysis of the balance sheet and the income statement for all years presented (don't do the cash flow statement). Remember to use net sales as the common denominator for the income statement accounts and use total assets or total liabilities + total shareholders' equity for the balance sheet accounts. Note: This needs to be included in your final report. b. Prepare horizontal analysis of the balance sheet and income statement (not the cash flow statement) for all years presented in the annual report and use the earliest year presented as the base year. You will divide each line item of each subsequent year by the earliest year (base year). The base year will be 100% since you're dividing it by itself. You might want to set up a spreadsheet or table for the vertical and horizontal analyses. You will find that the company presents 3 years of income statements and 2 years of balance sheets. Note: This also needs to be included. 3. Study the results of your vertical and horizontal analysis on the income statement and balance sheet. In your own words, summarize at least two changes that you've found on each of these two statements (for a total of eight changes). Do you find that there is a positive correlation between the changes that you've noticed and what management talked about in the management's discussion section? Describe these correlations or lack thereof. 4. Calculate the following ratios for the most recent 2 years: A table might be appropriate for your ratios. Be sure and show me your calculations so I can give you partial credit. Also, please indicate where you obtained your information (10-k, Yahoo.com/finance, sec.gov etc.). Liquidity: current ratio, quick ratio b. Profitability: You may use ending asset or stockholder equity balances if you find that you don't have enough data to do averages (averages are calculated as beg + ending balance divided by 2). Refer to the text and my lectures: . Return on assets ii. Return on stockholders' equity iii. Operating income % a. 5. 6. Study your horizontal analysis for the accounts receivable account, the allowance for doubtful accounts (if any) and the sales account for the years presented. If sales are changing, are the accounts receivable also changing in the same direction? If not, can you determine why? Do you believe the company is having a looser credit policy? To help you answer these questions, calculate the following ratios for the most recent 2 years: i. Receivables turnover ii. Allowance % A/R (allowance/gross A/R) iii. Collection period Remember to indicate N/A for the allowance % A/R if the company does not disclose an allowance account and you can't calculate this ratio. Be sure to show your calculations so that I can give you partial credit. Also, please indicate where you have obtained your information (10-k, Yahoo Finance, etc.) Inventory costing: a. What is the inventory costing method b. Refer to your vertical and horizontal analysis. Is the change in cost of goods sold appropriate for the change in sales and the change in inventory over the years presented? Why or why not? Remember, management's discussion may give some insights. c. Calculate the following inventory ratios for the latest 2 years presented: i. Inventory turnover = COGS/Average inventory ii. Gross profit % (you may have to calculate the gross profit first) iii. Number of Days Sales in ending inventory or called Days in Inventory Again, be sure to show your calculations so I can give you partial credit. Also, please indicate where you obtained your numbers. Property, plant and equipment a. What depreciation method(s) is used? b. Study the changes in PPE over the years presented on the balance sheet along with the investing activities on the cash flow statement. Describe what changes are going on over the years presented. In other words, is the company buying more PPE? or selling off these productive assets? c. Calculate the following ratios for the most recent 2 years: Fixed asset turnover ii. % of property, plant, and equipment depreciated Be sure to show your calculations so I can give you partial credit. Again, please indicate where you obtained your numbers. 7. 8. 9. Liabilities a. What is the composition of the company's liabilities? Specifically, what major accounts make up current and noncurrent liabilities? You might show me a table of these major accounts. b. Calculate the following ratios for the most recent 2 years: Debt ratio (total liabilities/total assets) ii . Debt to equity = total liabilities/total stockholders' equity Be sure to show your calculations so I can give you partial credit. Again, please indicate where you obtained your numbers. Stockholders' Equity a. What types of stock does the company have available for issue? b. Describe any changes in the stockholders' equity stock accounts over the 2 most recent years presented. What do you believe are the reasons for these activities? C. Calculate the following ratios for the most recent 2 years: Earnings per share (you'll find the basic earnings per share on the income statement under net income) ii. Price/Earnings (PE ratio). Note: the market price should be the closing market price at the end of the company's fiscal year. Be sure and show your calculations so I can give you partial credit. Also, please indicate where you obtained your numbers. Tracking the stock price: You should go to the company's website or another website such as Yahoo.com/finance and look up your company's stock price history for the past year up to most recent date. Give me a brief description of this stock price history. One option is to include a screenshot of the history as part of your answer. Final review Review your ratio results, your analyses, management's discussion, analysts' information, etc. Highlight the company's past performance (strengths/weaknesses); please do not recite ratio results, etc. just summarize your findings and give me some indication of what the company's performance will be in the near future. Do you believe your analysis of the company's past performance to be a good predictor of the future? Please study the company's most recent quarterly earnings to help you answer this question. Would you recommend that we invest in the stock of this company? Why? 10. 11