Under Armour Inc C (UA)

Operating profit margin

		Mar 31, 2025	Mar 31, 2024	Dec 31, 2023	Mar 31, 2023	Dec 31, 2022
Operating income	US$ in thousands	-127,247	229,751	229,751	263,586	283,811
Revenue	US$ in thousands	5,164,310	5,701,880	5,701,880	5,903,160	5,903,640
Operating profit margin		-2.46%	4.03%	4.03%	4.47%	4.81%

March 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $-127,247K ÷ $5,164,310K
= -2.46%

The operating profit margin of Under Armour Inc C has displayed a fluctuating trend over the years based on the provided data. As of December 31, 2022, the operating profit margin stood at 4.81%, indicating that the company was generating a profit of $0.0481 for every dollar of sales. However, by March 31, 2023, the margin decreased to 4.47%, showing a slight decline in profitability.

Subsequently, as of December 31, 2023, the operating profit margin declined further to 4.03%, signaling potential challenges in managing operating expenses relative to revenue. This trend persisted into March 31, 2024, with the operating profit margin remaining at 4.03%, suggesting a need for the company to optimize its cost structure to enhance profitability.

Notably, as of March 31, 2025, the operating profit margin took a sharp downturn to -2.46%, indicating that the company's operating expenses exceeded its operating income, resulting in a negative margin. This negative margin raises concerns about the company's operational efficiency and financial performance, emphasizing the importance of effective cost management strategies.

In conclusion, the fluctuating and declining trend in Under Armour Inc C's operating profit margin highlights the challenges the company faces in maintaining and improving profitability. Addressing cost inefficiencies and enhancing revenue generation strategies will be crucial for the company to achieve sustainable financial growth.