ReviewUnderArmour's2019 Annual Reportand calculate the following financial ratios and explain why they are important:
- Current Ratio
- Accounts Receivable Turnover
- Debt Ratio
- Debt to Equity
- Return on Equity
underarmourinc.gcs-web.com Table of Contents Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31, 2019 December 31, 2018 Assets Current assets Cash and cash equivalents $ 788,072 $ 557,403 Accounts receivable, net 708,714 652,546 Inventories 892,258 1,019,496 Prepaid expenses and other current assets 313,165 364,183 Total current assets 2,702,209 2,593,628 Property and equipment, net 792,148 826,868 Operating lease right-of-use assets 591,931 Goodwill 550,178 546,494 Intangible assets, net 36,345 41,793 Deferred income taxes 82,379 112,420 Other long term assets 88,341 123,819 Total assets $ 4,843,531 $ 4,245,022 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 618,194 $ 560,884 Accrued expenses 374,694 340,415 Customer refund liabilities 219,424 301,421 Operating lease liabilities 125,900 Current maturities of long term debt 25,000 Other current liabilities 83,797 88,257 Total current liabilities 1,422,009 1,315,977 Long term debt, net of current maturities 592,687 703,834 Operating lease liabilities, non-current 580,635 Other long term liabilities 98,113 208,340 Total liabilities 2,693,444 2,228,151 Commitments and contingencies (see Note 8) Stockholders' equity Class A Common Stock, $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2019 and 2018; 188,289,680 shares issued and outstanding as of December 31, 2019, and 62 62 187,710,319 shares issued and outstanding as of December 31, 2018. Class B Convertible Common Stock, $0.0003 1/3 par value; 34,450,000 shares authorized, issued 11 11 and outstanding as of December 31, 2019 and 2018. Class C Common Stock, $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2019 and 2018; 229,027,730 shares issued and outstanding as of December 31, 2019, and 76 75 226,421,963 shares issued and outstanding as of December 31, 2018. Additional paid-in capital 973,717 916,628 Retained earnings 1,226,986 1,139,082 Accumulated other comprehensive loss (50,765) (38,987) Total stockholders' equity 2,150,087 2,016,871 Total liabilities and stockholders' equity $ 4,843,531 $ 4,245,022 See accompanying notes. 55Student 1:57 PM Sat Jul 17 underarmourinc.gcs-web.com Table of Contents Under Armour, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) Year Ended December 31, 2019 2018 2017 Net revenues $ 5,267,132 $ 5,193,185 $ 4,989,244 Cost of goods sold 2,796,599 2,852,714 2,737,830 Gross profit 2,470,533 2,340,471 2,251,414 Selling, general and administrative expenses 2,233,763 2,182,339 2,099,522 Restructuring and impairment charges 183,149 124,049 Income (loss) from operations 236,770 (25,017) 27,843 Interest expense, net (21,240) (33,568 (34,538) Other expense, net (5,688) (9,203) (3,614) Income (loss) before income taxes 209,842 (67,788) (10,309) Income tax expense (benefit) 70,024 (20,552) 37,951 Income (loss) from equity method investment (47,679) 934 Net income (loss) 92,139 $ (46,302) $ (48,260) Basic net income (loss) per share of Class A, B and C common stock 0.20 $ (0.10) $ (0.11) Diluted net income (loss) per share of Class A, B and C common stock 0.20 $ (0.10) $ (0.11) Weighted average common shares outstanding Class A, B and C common stock Basic 450,964 445,815 440,729 Diluted 454,274 445,815 440,729 See accompanying notes. 56
