Under Armour Inc C (UA)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -116,693 -60,682 -88,003 232,655 271,468 296,607 270,258 283,811 334,683 412,088 413,883 486,290 456,005 342,511 51,632 -613,438 -595,211 -514,861 -356,669 236,770
Long-term debt US$ in thousands 595,188 594,592 595,384 594,873 595,124 594,655 594,107 674,478 673,930 673,382 672,834 662,531 662,903 804,621 1,009,950 1,003,560 997,347 987,949 593,281 592,687
Total stockholders’ equity US$ in thousands 1,984,720 1,985,200 1,816,570 2,153,290 2,133,930 2,054,040 1,974,620 1,966,150 1,832,000 1,816,330 1,729,080 2,088,990 1,977,750 1,846,710 1,770,200 1,675,990 1,470,350 1,423,410 1,550,180 2,150,090
Return on total capital -4.52% -2.35% -3.65% 8.47% 9.95% 11.20% 10.52% 10.75% 13.36% 16.55% 17.23% 17.67% 17.27% 12.92% 1.86% -22.89% -24.12% -21.35% -16.64% 8.63%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-116,693K ÷ ($595,188K + $1,984,720K)
= -4.52%

The return on total capital for Under Armour Inc C has shown volatility over the past few years. It started at a positive 8.63% on December 31, 2019, but then deteriorated significantly, reaching negative figures in subsequent quarters, hitting lows of -24.12% on September 30, 2020, and -22.89% on December 31, 2020.

However, the company managed to turn the situation around, with a positive return on total capital of 17.67% on December 31, 2021, and maintaining this positive trend into 2022, reaching 17.23% on June 30, 2022. The return slightly decreased to 13.36% on December 31, 2022, and continued at a moderate level in subsequent quarters.

The return on total capital dipped into negative territory again with -3.65% on June 30, 2024, and -4.52% on December 31, 2024. Despite these fluctuations, Under Armour Inc C has generally shown an improvement in its return on total capital after a period of decline, indicating efforts to efficiently utilize its capital to generate returns for its stakeholders.