Under Armour Inc C (UA)

Interest coverage

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 -38,677 -45,135 -35,288 -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
Interest expense (ttm) US$ in thousands 2,344 2,960 2,960 3,333 2,615 3,650 5,265 8,447 12,826 17,329 16,000 21,706 29,008 36,991 51,713 57,407 55,436 47,259 37,610 28,310
Interest coverage -16.50 -15.25 -11.92 -19.75 87.86 74.37 56.34 31.99 22.13 18.23 20.98 19.43 17.71 14.95 14.02 11.24 6.22 2.50 -2.60 -3.00

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-38,677K ÷ $2,344K
= -16.50

The interest coverage ratio of Under Armour Inc C has shown a fluctuating trend over the period from June 30, 2020, to March 31, 2025. The ratio started in a negative range in mid-2020 but gradually improved over time. By the end of June 30, 2023, the interest coverage ratio had reached a high of 31.99, indicating a strong ability to cover interest payments with operating income.

However, the ratio dropped significantly in the subsequent quarters, turning negative by June 30, 2024. This negative trend continued through September 30, 2024, and December 31, 2024, suggesting a deterioration in the company's ability to meet its interest obligations with operating earnings.

Overall, the interest coverage ratio of Under Armour Inc C exhibits a period of consistent improvement followed by a sharp decline. It is crucial for the company to focus on stabilizing its earnings and managing its debt levels to ensure adequate coverage of interest expenses in the future.