Please check my answers. Thanks.

Ratio Analysis	Under Armour (UA)
	2014/12/31	2013/12/31	2012/12/31	Peer Group
Additional Input
NOWC	563,548	459,664	318,661
Net LT assets	477,778	399,124	218,309
Stock price	67.90	43.65	24.27
# of Shares (in 000's)	213,896	211,629	209,522
EPS	0.95	0.75	0.61
Tax Rate	0.39	0.38	0.37
Liquidity Ratios
Current Ratio	3.67	2.65	3.58	3.95
Quick Ratio	2.20	1.40	2.14	2.68
Debt Management
Debt-to-equity	0.21	0.15	0.08	0.03
Net-debt-to-equity	-0.23	-0.18	-0.34	-0.43
Interest coverage	65.14	89.98	40.25	189.53
Asset Management
A/R turnover	9.28	9.39	9.24	48.05
Inventory turnover	2.93	2.55	2.99	3.68
A/P turnover	4.39	4.00	4.18	4.51
Days' receivables	39.33	38.87	39.50	39.08
Days' inventory	124.61	143.21	121.95	101.44
Days' payables	83.14	91.35	87.38	100.56
Cash conversion cycle	80.79	90.72	74.07	39.96
Net assets turnover	2.96	2.72	3.42	3.45
Net PPE turnover	10.09	10.41	10.15	7.81
Profitability Management
ROE	0.15	0.15	0.16	0.19
Operating ROA (or ROIC)	0.20	0.19	0.25	0.37
Gross margin	0.49	0.49	0.48	0.47
Profit margin	0.07	0.07	0.07	0.10
Market Values
Tobin's Q	7.29	6.19	4.69	4.61
PE Ratio	71.47	58.20	40.11	30.03

Ratio Analysis	Peers
	NKE	COLM	LULU	Average
Additional Input
NOWC	3,899,000	452,096	126,652
Net LT assets	4,144,000	450,682	298,437
Stock price	101.41	44.21	66.24
# of Shares (in 000's)	857,000	69,828	141,945
EPS	3.70	1.94	1.66
Tax Rate	0.22	0.29	0.38
Liquidity Ratios
Current Ratio	2.52	3.39	5.95	3.95
Quick Ratio	1.53	2.26	4.24	2.68
Debt Management
Debt-to-equity	0.10	0.00	0.00	0.03
Net-debt-to-equity	-0.37	-0.33	-0.61	-0.43
Interest coverage	N/A	189.53	N/A	189.53
Asset Management
A/R turnover	8.17	5.23	130.74	48.05
Inventory turnover	3.81	2.98	4.24	3.68
A/P turnover	2.69	3.07	7.77	4.51
Days' receivables	44.69	69.75	2.79	39.08
Days' inventory	95.74	122.55	86.02	101.44
Days' payables	135.83	118.88	46.97	100.56
Cash conversion cycle	4.60	73.42	41.85	39.96
Net assets turnover	3.80	2.33	4.23	3.45
Net PPE turnover	10.16	7.20	6.07	7.81
Profitability Management
ROE	0.26	0.10	0.22	0.19
Operating ROA (or ROIC)	0.41	0.15	0.56	0.37
Gross margin	0.46	0.45	0.51	0.47
Profit margin	0.11	0.07	0.13	0.10
Market Values
Tobin's Q	4.44	1.97	7.41	4.61
PE Ratio	27.41	22.79	39.90	30.03

1. How has Under Armour's asset management efficiency changed over the last three years? Assess the company's asset management performance with respect to its peers (i.e., Nike, Columbia Sportswear, and Lululemon).

a. Inventories: UA's inventory turnover decreased from 2012 to 2013, but rebounded in 2014. However, inventory turnover for all three year from 2012 to 2014 was lower than the peer group average of 3.68. One of the its peers, Lululemon had a high turnover of 4.24 in a recent year. In relation to the inventory turnover, UA's Day's inventory was much longer than its peers, although the Days inventory decreased from 143.21 in 2013 to 124.61 in 2014. The Days inventory of the peer group was 101.44.

b. Receivables: UA's receivables turnover increased from 2012 to 2013, but slowed down in 2014. As of 2014 UA had a much lower receivables turnover ratio of 9.28 than the peer group average of 48.05, while Lululemon's receivables turnover was an incredible 130.74 at one point. However, UA's days receivables for three years from 2012 to 2014 has been very close to the days receivables of the peer group.

c. Days payables: UA's days payables increased from 2012 to 2013 and decreased from 2013 to 2014. Compared to its peers, the days payables has been lower. This indicates that UA settled with its creditors faster than its peers.

d. UA's cash conversion cycle was prolonged sizably from 2012 to 2013, and recovered some ground in 2014. For all three years from 2012 to 2014, the cash conversion cycle was more than twice longer than its peers average. From 2012 to 2014, it took UA 2.5 to 3 months from paying for its inventory to receiving the cash from its sale.

e. Net PPE turnover: UA's net PPE turnover has been consistent at around 10 from 2012 to 2014. This ratio was significantly higher than the peer group average of 7.81. A high fixed-asset turnover ratio indicates more efficient use of fixed assets in generating revenue.

f. Net assets turnover: UA's ratio decreased from 2012 to 2013, but increased from 2013 to 2014. This ratio for the three year from 2012 to 2014 was slightly below the peer group average. This indicates that UA has not been generating a sufficient volume of business given its asset investment. Sales should be increased, some assets should be sold, or a combination of these steps should be taken.

2. Discuss the company's short-term financial risk.

In order to measure UA's ability to pay off short-term obligations we should analyze its liquidity ratios.

a. current ratio: UA's current ratio has been consistently lower than its peer group average from 2012 to 2014. A lower ratio indicates less liquidity, implying a greater reliance on operating cash flow and outside financing to meet short-term obligations. Compared to Lululemon for one recent year, UA's current ratio was 3.67, while Lululemon's was 5.95, which means that Lululemon was much more liquid and had more short-term assets readily available to cover its current liabilities. Therefore, short-term creditors would be more likely to give a loan to Lululemon than to UA.

b. quick ratio: UA fluctuated its quick ratio by decreasing in 2013, but then increasing in 2014. However, UA's ratio is consistently below the peer group average of 2.68 from 2012 to 2014. This means UA's ability to cover its short-term debts was not as strong as Lululemon, one of its competitors. As of 2014 UA had a quick ratio of 2.2 while Lululemon's quick ratio was 4.24, which indicates that UA had a lower liquidity position than Lululemon, and thus had a competitive disadvantage.