Under Armour Inc C (UA)

Solvency ratios

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
Debt-to-assets ratio 0.12 0.12 0.13 0.12 0.14 0.14 0.14 0.15 0.13 0.14 0.17 0.21 0.20 0.21 0.20 0.12 0.12 0.13 0.13 0.13
Debt-to-capital ratio 0.22 0.21 0.22 0.23 0.26 0.27 0.27 0.28 0.24 0.25 0.30 0.36 0.37 0.40 0.41 0.28 0.22 0.22 0.22 0.22
Debt-to-equity ratio 0.28 0.27 0.28 0.30 0.34 0.37 0.37 0.39 0.32 0.34 0.44 0.57 0.60 0.68 0.69 0.38 0.28 0.27 0.29 0.29
Financial leverage ratio 2.21 2.32 2.27 2.43 2.46 2.64 2.63 2.66 2.39 2.44 2.64 2.78 3.00 3.31 3.52 3.12 2.25 2.15 2.28 2.16

The solvency ratios of Under Armour Inc C indicate its ability to meet its long-term debt obligations.

The debt-to-assets ratio has remained relatively stable, indicating that around 12-15% of the company's total assets are financed by debt over the periods analyzed. This suggests a lower risk to creditors as a smaller portion of the company's assets are funded by debt.

Similarly, the debt-to-capital and debt-to-equity ratios have remained relatively stable, ranging from 21-28% and 27-44%, respectively. These ratios indicate the proportion of the company's capital and equity financed by debt, with lower ratios generally seen as more favorable as they indicate lower financial risk.

The financial leverage ratio, which assesses the company's reliance on debt to finance its assets, has been fluctuating but generally increasing over time. This indicates that the company's debt levels have been increasing in relation to its equity, which may pose a higher solvency risk.

In summary, Under Armour Inc C has maintained stable debt-to-assets, debt-to-capital, and debt-to-equity ratios, reflecting a relatively conservative approach to debt financing. However, the increasing financial leverage ratio suggests a growing reliance on debt, which may warrant further scrutiny regarding the company's ability to manage its debt obligations effectively in the long term.

Coverage ratios

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
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

The interest coverage ratio for Under Armour Inc C has exhibited fluctuations over the past few quarters. The trend shows improvement from negative coverage in Q4 2020 to positive coverage in the subsequent quarters, reaching its peak in Q4 2022. This indicates that the company's earnings before interest and taxes have been sufficient to cover its interest expenses comfortably in recent quarters. However, it's worth noting that the ratio has decreased slightly in Q1 2023 but remains at healthy levels. Overall, the company's ability to meet its interest obligations has generally strengthened over the last few quarters, reflecting a positive trend in its financial health.