Under Armour Inc C (UA)

Return on total capital

Mar 31, 2025 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 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -110,896 -117,354 -75,288 -65,821 229,751 271,468 296,607 270,258 283,811 315,944 335,688 421,654 513,602 553,033 725,120 645,331 344,966 117,960 -97,921 -85,017
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 1,984,720 1,985,200 1,816,570 2,153,290 2,173,020 2,089,740 2,005,410 1,998,400 1,832,000 1,816,330 1,729,080 1,728,950 2,088,990 1,977,750 1,846,710 1,770,200 1,675,990 1,470,350 1,423,410
Return on total capital -5.91% -3.79% -3.62% 10.67% 12.49% 14.19% 13.48% 14.20% 17.25% 18.48% 24.39% 29.71% 26.47% 36.66% 34.94% 19.49% 7.04% -6.66% -5.97%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-110,896K ÷ ($—K + $—K)
= —

Under Armour Inc C's return on total capital fluctuated over the period, ranging from negative figures to positive percentages. The return on total capital was negative in the first half of 2020, indicating challenges in generating profits relative to the invested capital. However, there was a significant improvement starting from March 2021, with the return on total capital turning positive and showing an increasing trend until September 2021.

During the latter half of 2021 and continuing into 2022, Under Armour Inc C maintained healthy return on total capital figures, peaking at 36.66% in September 2021. However, the ratio started to decline moderately from that point but remained above 10% until the end of March 2024. Notably, the return on total capital dipped into negative territory by mid-2024, indicating a decline in profitability relative to the total capital employed.

Overall, despite some fluctuations, Under Armour Inc C generally showed an improvement in its return on total capital from mid-2020 to early 2024, followed by a decline towards negative returns in the latter half of 2024 and into 2025. This trend suggests varying levels of efficiency in utilizing the total capital to generate profits over the period under review.