Under Armour Inc C (UA)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.13% | 44.79% | 50.35% | 48.27% | 46.90% |
| Operating profit margin | 4.03% | 4.47% | 8.56% | -13.71% | 4.50% |
| Pretax margin | 4.60% | 4.84% | 6.90% | -11.17% | 3.08% |
| Net profit margin | 4.07% | 6.34% | 6.34% | -12.27% | 1.75% |
Over the past five years, Under Armour Inc C has demonstrated fluctuations in its profitability ratios. The gross profit margin, a key indicator of a company's operational efficiency, has been relatively stable around 45%, with a slight increase in 2021. This indicates that the company has been able to maintain a consistent level of profitability from its core business activities.
In terms of operating profit margin, there has been more variability, with a significant decrease in 2020 but a recovery in 2021. This suggests that the company may have faced challenges in controlling its operating expenses in 2020 but managed to improve its cost management in the following years.
The pretax margin also shows fluctuations, with negative margins in 2020 and 2019. The improvement in 2021 indicates that the company was able to generate higher profits before taxes, which is a positive sign for its overall financial performance.
The net profit margin, a measure of a company's bottom-line profitability, has also exhibited variability, including a significant negative margin in 2020. However, the company was able to recover and maintain positive net profit margins in the subsequent years, indicating some stability in its overall profitability.
Overall, while there have been fluctuations in Under Armour Inc C's profitability ratios over the past five years, the company has shown resilience in maintaining profitability and making improvements in certain areas. It will be important for the company to continue monitoring and managing its profitability ratios to sustain its financial health in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.83% | 5.46% | 9.74% | -12.19% | 4.89% |
| Return on assets (ROA) | 4.87% | 7.76% | 7.21% | -10.92% | 1.90% |
| Return on total capital | 8.36% | 10.75% | 17.67% | -22.89% | 8.63% |
| Return on equity (ROE) | 10.78% | 19.05% | 17.24% | -32.77% | 4.29% |
Under Armour Inc C's profitability ratios show mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been decreasing gradually from 5.46% in 2023 to 4.83% in 2024. Despite the decline, the company still managed to generate a positive return on its assets during these years.
2. Return on Assets (ROA):
- The ROA decreased significantly from 7.76% in 2023 to 4.87% in 2024. This reduction indicates that the company's ability to generate profit from its assets decreased during this period.
3. Return on Total Capital:
- The Return on Total Capital also decreased over the years from 10.75% in 2023 to 8.36% in 2024. This decline suggests that the company's profitability relative to the total capital employed has weakened.
4. Return on Equity (ROE):
- The ROE fluctuated notably, with the highest being 19.05% in 2023 and the lowest at -32.77% in 2020. The improvement to 10.78% in 2024 indicates that the company's ability to generate profit from shareholders' equity has recovered but remains below previous highs.
In summary, while Under Armour Inc C's profitability ratios have shown some improvement in certain areas such as ROE, there are also concerning trends in others like ROA and Operating ROA. It will be important for the company to closely monitor and manage its profitability metrics to sustain long-term financial health and growth.