Under Armour Inc C (UA)

Interest coverage

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	152,250	132,296	38,903
Interest expense (ttm)	US$ in thousands	23,548	15,396	10,244	11,244	11,244	4,585	7,602	12,166	16,891	30,262	31,740	22,480	17,270	10,974	5,994	4,254	4,254	3,654	3,654	3,654
Interest coverage		9.88	17.63	28.95	24.04	25.24	73.00	54.21	34.02	28.79	15.07	10.79	2.30	-35.52	-54.24	-85.90	-83.84	55.66	41.67	36.21	10.65

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $232,655K ÷ $23,548K
= 9.88

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses.

Analyzing the interest coverage ratios of Under Armour Inc C over the past several quarters reveals fluctuations in the company's ability to cover its interest expenses. The ratio has shown a general upward trend since the end of 2020, reaching a peak of 73.00 in December 2022. This indicates a significant improvement in the company's ability to service its debt obligations.

However, it is important to note that there have been periods of volatility, with the ratio dropping notably in the first quarter of 2021 to -35.52 and in the following quarter to -54.24, indicating potential challenges in meeting interest payments during those periods.

Overall, the recent positive trend in the interest coverage ratio suggests that Under Armour Inc C has made progress in managing its debt obligations. However, investors and creditors should continue to monitor the company's ability to maintain a strong interest coverage ratio to ensure ongoing financial stability.