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 | -110,896 | -117,354 | -75,288 | -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 | -47.31 | -39.65 | -25.44 | -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)
= $-110,896K ÷ $2,344K
= -47.31
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.
Peer comparison
Mar 31, 2025