Under Armour Inc C (UA)

Financial leverage ratio

Mar 31, 2024 Dec 31, 2023 Mar 31, 2023 Dec 31, 2022 Mar 31, 2022
Total assets US$ in thousands 4,760,730 4,760,730 4,857,080 4,857,080 4,991,400
Total stockholders’ equity US$ in thousands 2,153,290 2,153,290 1,998,400 1,998,400 2,088,990
Financial leverage ratio 2.21 2.21 2.43 2.43 2.39

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,760,730K ÷ $2,153,290K
= 2.21

The financial leverage ratio for Under Armour Inc C has shown fluctuations over the past five years. The ratio was at its highest in December 2020 at 3.00, indicating that the company relied heavily on debt to finance its operations at that time. However, there was a significant decrease in this ratio in subsequent years, with the ratio decreasing to 2.21 as of March 31, 2024.

A financial leverage ratio of 2.21 as of March 31, 2024, suggests that the company has reduced its dependency on debt to finance its assets compared to previous years. This could indicate improved financial stability and reduced financial risk, as a lower financial leverage ratio generally means lower debt levels relative to equity.

Overall, it appears that Under Armour Inc C has made efforts to improve its financial leverage position over the years, with the current ratio indicating a more balanced mix of debt and equity in its capital structure. It is important for investors and stakeholders to monitor this ratio in future periods to assess the company's ongoing financial health and risk profile.