Under Armour Inc A (UAA)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.92% | 46.13% | 44.79% | 50.35% | 50.35% |
| Operating profit margin | -2.46% | 4.03% | 4.47% | 8.56% | 8.56% |
| Pretax margin | -3.96% | 4.60% | 4.87% | 6.88% | 6.90% |
| Net profit margin | -3.90% | 4.07% | 6.34% | 6.34% | 6.34% |
The analysis of profitability ratios for Under Armour Inc A reveals the following trends:
1. Gross Profit Margin:
- The gross profit margin has exhibited consistency over recent years, hovering around the range of 44.79% to 50.35%.
- However, there was a slight decline in the gross profit margin from 2023 to 2024, before showing an improvement in 2025.
2. Operating Profit Margin:
- The operating profit margin started at 8.56% in 2021 and 2022, but experienced a significant decline to 4.47% in 2023, further decreasing to 4.03% in 2024.
- Notably, the operating profit margin turned negative in 2025, indicating operational challenges.
3. Pretax Margin:
- Similarly, the pretax margin followed a downward trend, declining from 6.90% in 2021 to -3.96% in 2025.
- This suggests that the company's earnings before taxes have been decreasing over the years, with 2025 showing a negative pretax margin.
4. Net Profit Margin:
- The net profit margin has also decreased over the years, going from 6.34% in 2021 to -3.90% in 2025.
- This indicates that the company's bottom line profitability has deteriorated, resulting in a negative net profit margin in the most recent year.
Overall, the analysis of profitability ratios for Under Armour Inc A highlights a concerning downward trend in profitability indicators, with decreasing operating, pretax, and net profit margins over the years. This suggests that the company may be facing challenges in generating profits and controlling costs, requiring further investigation and strategic actions to improve financial performance.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.96% | 4.83% | 5.43% | 9.74% | 9.74% |
| Return on assets (ROA) | -4.68% | 4.87% | 7.71% | 7.21% | 7.21% |
| Return on total capital | 0.00% | 10.67% | 13.19% | 25.22% | 17.67% |
| Return on equity (ROE) | -10.65% | 10.78% | 18.74% | 17.24% | 17.24% |
Based on the provided data, the profitability ratios of Under Armour Inc A have shown fluctuations over the years:
1. Operating return on assets (Operating ROA) remained relatively stable at around 9.74% from December 31, 2021, to March 31, 2022. However, there was a decline in Operating ROA to 5.43% in March 31, 2023, followed by a further decrease to 4.83% in March 31, 2024, and a significant negative figure of -2.96% in March 31, 2025, indicating a decrease in the company's operating efficiency and profitability.
2. Return on assets (ROA) mirrored a similar trend to Operating ROA, staying consistent at 7.21% during December 31, 2021, and March 31, 2022. It then increased slightly to 7.71% in March 31, 2023, but dropped to 4.87% in March 31, 2024, and turned negative to -4.68% in March 31, 2025. The negative ROA implies that the company is experiencing financial difficulties and may not be generating profits through its assets.
3. Return on total capital displayed a high figure of 25.22% on March 31, 2022, but decreased notably to 13.19% in March 31, 2023, and further down to 10.67% in March 31, 2024, and hit a value of 0.00% in March 31, 2025. This indicates a decline in the efficiency of the company in generating returns from its total invested capital.
4. Return on equity (ROE) showed a steady figure of around 17.24% from December 31, 2021, to March 31, 2022. However, there was an increase to 18.74% in March 31, 2023, but it dropped to 10.78% in March 31, 2024, and turned negative to -10.65% in March 31, 2025. This suggests that the company's ability to generate returns for its shareholders has been on a declining trend, leading to a negative ROE in the last period.
In summary, the profitability ratios of Under Armour Inc A have reflected a mix of stability, decline, and negative returns over the years, indicating a potential deterioration in the company's financial performance and effectiveness in generating profits.