Perform a financial analysis for Under Armor using the financial statements below. Using 3 years of data, compare the data to the industry average in order to determine how the company is doing. Please include the following ratios: Gross profit margin, ROI, ROE, EPS, Inventory turnover, days of inventory, debt to asset ratio, debt to equity ratio, times interest earned
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December 31, 2009 December 31, 2006 December 31, 2007 $187.297 79356 148.888 19,989 12,870 448.000 72,926 5.681 13,908 5,073 $ 545588 102,042 81.302 182,232 18.023 12,824 396,423 73,548 5,470 8,687 3.427 487.555 40588 93.515 166,082 11.642 10,418 322,245 52,332 6,470 8173 1.303 390,613 S- 68,710 40.885 9.178 55,012 36,111 4,111 Assets Current assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes Total current assets Property and equipment, net Intangible assets, net Deferred income taxes Other long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Revolving credit facility Accounts payable Accrued expenses Current maturities of long-term debt Current maturities of capital lease obligations Other current liabilities Total current liabilities Long-term debt, net of current maturities Capital lease obligations, net of current maturities Other long-term liabilities Total liabilities Stockholders' equity Class A Common Stock, 5.0003 1/3 par value; 100,000,000 shares authorized as of December 31, 2009 and 2008; 37,747,647 shares issued and outstanding as of December 31, 2009 and 36,808,750 shares issued and outstanding as of December 31, 2008 Class B Convertible Common Stock, S.0003 1/3 par value: 12.500,000 shares authorized, issued and out- standing as of December 31, 2009 and 2008 Additional paid-in capital Retained earnings Uncarned compensation Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 25,000 72.435 25,905 7,072 361 2.337 133.110 13,061 $65 1.292 120,162 10.948 95,609 9.208 14.481 $ 145,591 10.10 156,458 121 12 197342 202.188 174725 156,011 (60) 162,362 1177 (182) (14) 864 331.097 2845 399.997 5545 588 Consolidated Statements of Income (In thousands, except per-share amounts) December December 31, 2009 31, 2008 December 31, 2007 $856,411 443.386 413,025 725,244 370,296 354,948 606,561 301,517 305.044 Net revenues Cost of goods sold Gross profit Operating expenses Selling, general, and administrative expenses Income from operations Interest income (expense), net Other income (expense), net Income before income taxes Provision for income taxes Net income Net income available per common share Basic Diluted Weighted average common shares outstanding Basic Diluted 327,752 85,273 (2.344) (511) 82.418 35,633 $ 46,785 278,023 76,925 (850) (6,175) 69,900 31,671 38,229 218,779 86.265 749 2.029 89,043 36,485 52,558 $0.94 $0.92 0.78 0.76 1.09 1.05 49.848 50,650 49,086 50,342 48,345 50.141 SOURCE: Under Armour Annual report, 2009. December 31, 2008 December 31, 2007 38,229 52,558 21,347 14,622 5,459 (2,567) Consolidated Statements of Cash Flows (In thousands) December 31, 2009 Cash flows from operating activities Net income $46,785 Adjustments to reconcile net income to net cash pro- vided by used in operating activities: Depreciation and amortization 28,249 Unrealized foreign currency exchange rate (gains) losses (5,222) Loss on disposal of property and equipment Stock-based compensation 12,910 Deferred income taxes (5.212) Changes in reserves for doubtful accounts, returns, discounts and inventories 1,623 Changes in operating assets and liabilities: Accounts receivable 3,792 Inventories 32,998 Prepaid expenses and other assets 1,870 Accounts payable (4,386) Accrued expenses and other liabilities 11,656 Income taxes payable and receivable (6,059) Net cash provided by (used in) operating activities 119,041 8,466 (2.818) 4,182 (4,909) 8,711 4,551 2.634 (19.497) (7.187) 16,957 (5,316) 2,516 (24,222) (83,966) (2,067) 11,873 11,825 3,492 (14,628) 69,516 December 31, 2009 December 31, 2008 December 31, 2007 (19.845) (38,594) (600) (2,893) (33,959) (125) (62.860) 62.860 (34,084) (42,066) (25.000) 7.649 (7.656) (361) 40,000 (15,000) 13,214 (6,490) (464) 14.000 (14,000) 11,841 (2,973) (794) 5.127 2,131 6,892 1,990 3,182 5,128 (1.354) Cash flows from investing activities Purchase of property and equipment Purchase of intangible assets Purchase of trust owned life insurance policies Proceeds from sales of property and equipment Purchases of short-term investments Proceeds from sales of short-term investments Net cash used in investing activities Cash flows from financing activities Proceeds from revolving credit facility Payments on revolving credit facility Proceeds from long-term debt Payments on long-term debt Payments on capital lease obligations Excess tax benefits from stock-based compensation arrangements Proceeds from exercise of stock options and other stock issuances Payments of debt financing costs Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents Beginning of year End of year Non-cash financing and investing activities Fair market value of shares withheld in consideration of employee tax obligations relative to stock-based compensation Purchase of property and equipment through certain obligations Purchase of intangible asset through certain obligations Other supplemental information Cash paid for income taxes Cash paid for interest (16,467) 35,381 18,148 2,561 (1.377) 497 85.255 61.454 (30,067) 102,042 $187.297 40.588 102,042 70,655 40RS $ 608 4.784 1.110 2,105 40,834 1.273 29,561 1.444 30.502 525
