Under Armour Inc C (UA)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 0.14 | 0.13 | 0.20 | 0.12 |
| Debt-to-capital ratio | 0.22 | 0.26 | 0.24 | 0.37 | 0.22 |
| Debt-to-equity ratio | 0.28 | 0.34 | 0.32 | 0.60 | 0.28 |
| Financial leverage ratio | 2.21 | 2.46 | 2.39 | 3.00 | 2.25 |
The solvency ratios of Under Armour Inc C indicate its ability to meet its long-term financial obligations.
The debt-to-assets ratio has shown a declining trend over the past five years, from 0.14 in 2023 to 0.12 in 2024, suggesting that the company has reduced its dependence on debt to finance its assets.
Similarly, the debt-to-capital ratio has also decreased steadily over the years, indicating a decreasing reliance on debt to fund its capital structure. The ratio declined from 0.26 in 2023 to 0.22 in 2024.
The debt-to-equity ratio has followed a similar trend, declining from 0.34 in 2023 to 0.28 in 2024, reflecting a lower level of financial risk as compared to previous years.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has also decreased consistently over the years, from 3.00 in 2020 to 2.21 in 2024. This indicates an improvement in the company's financial health and a reduced reliance on debt to support its operations.
Overall, the decreasing trend in these solvency ratios suggests that Under Armour Inc C has been effectively managing its debt levels and improving its ability to meet its long-term financial obligations.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.98 | 53.63 | 26.88 | -35.52 | 55.66 |
Under Armour Inc C's interest coverage ratio has displayed significant fluctuations over the past five years. The interest coverage ratio stood at 7.98 as of March 31, 2024, which indicated that the company generated sufficient operating income to cover its interest expenses. This was a notable decrease from the previous year's value of 53.63, suggesting a potential deterioration in Under Armour's ability to meet its interest obligations.
In 2021, the interest coverage ratio was 26.88, showing a strong ability to cover interest expenses. However, in 2020, the ratio was negative at -35.52, indicating that the company's earnings were insufficient to cover its interest payments during that period.
Looking back to 2019, the interest coverage ratio was relatively high at 55.66, indicating a robust ability to meet interest expenses. Overall, the fluctuating trend in Under Armour's interest coverage ratio suggests variability in the company's financial performance and its ability to service its debt obligations with operating income.