Under Armour Inc C (UA)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	594,873	674,478	662,531	1,003,560	592,687
Total stockholders’ equity	US$ in thousands	2,153,290	1,966,150	2,088,990	1,675,990	2,150,090
Debt-to-capital ratio		0.22	0.26	0.24	0.37	0.22

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $594,873K ÷ ($594,873K + $2,153,290K)
= 0.22

The debt-to-capital ratio of Under Armour Inc C has shown some fluctuation over the past five years. As of March 31, 2024, the ratio stands at 0.22, indicating that debt accounts for 22% of the company's capital structure. This represents a decrease from the previous year's ratio of 0.26.

Comparing the current ratio to historical data, we observe that it is lower than in December 2021 and December 2020 when the ratios were 0.24 and 0.37, respectively. This suggests that the company has reduced its reliance on debt financing in its capital structure over the past year.

Furthermore, the current ratio is the same as in December 2019, indicating a return to the debt-to-capital ratio levels of five years ago. This stability in the ratio suggests that Under Armour Inc C has maintained a consistent approach to managing its debt levels relative to its capital over this period.

Overall, the decreasing trend in the debt-to-capital ratio over the past year reflects a potentially improved financial health and lower financial risk for Under Armour Inc C. However, further analysis of the company's debt management strategies and overall financial performance would be necessary to fully assess the implications of these changes in the debt-to-capital ratio.