Company: Under Armour (UA)

Annual Report

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.).

a. Liquidity: current ratio; quick ratio

b. Profitability: You may use ending asset or stockholder equity balances if you find that you dont have enough data to do averages (averages are calculated as beg + ending balance divided by

2). Refer to the text and my lectures:

i. Return on assets

ii. Return on stockholders equity

iii. Operating income %

5. 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 cant 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.)

6. 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, managements 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.

7. 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:

i. 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.

8. Liabilities

a. What is the composition of the companys 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:

i. 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.

9. 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:

i. Earnings per share (youll 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 companys fiscal year. Be sure and show your calculations so I can give you partial credit. Also, please indicate where you obtained your numbers.

10. Tracking the stock price: You should go to the companys website or another website such as Yahoo.com/finance and look up your companys 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.

11. Final review Review your ratio results, your analyses, managements discussion, analysts information, etc. Highlight the companys past performance (strengths/weaknesses); please do not recite ratio results, etc, just summarize your findings and give me some indication of what the companys performance will be in the near future. Do you believe your analysis of the companys past performance to be a good predictor of the future? Please study the companys most recent quarterly earnings to help you answer this question. Would you recommend that we invest in the stock of this company? Why?

Please return the answers as soon as possible.