Under Armour Inc A (UAA)

Net profit margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021
Net income	US$ in thousands	-201,267	232,042	374,459	360,060	360,060
Revenue	US$ in thousands	5,164,310	5,701,880	5,903,160	5,683,470	5,683,470
Net profit margin		-3.90%	4.07%	6.34%	6.34%	6.34%

March 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $-201,267K ÷ $5,164,310K
= -3.90%

The net profit margin of Under Armour Inc A has shown some fluctuations over the past few years. As of December 31, 2021, and March 31, 2022, the net profit margin stood at 6.34%, indicating that the company was able to retain 6.34% of its revenue as profit after accounting for all expenses. This stability in the net profit margin suggests efficient cost management during this period.

However, the net profit margin declined to 4.07% as of March 31, 2024, indicating a decrease in profitability. This may raise concerns regarding the company's ability to generate profits relative to its revenue and manage expenses effectively during that period.

The most concerning observation is seen as of March 31, 2025, where the net profit margin turned negative at -3.90%. A negative net profit margin indicates that the company incurred more expenses than it generated in revenue, resulting in an overall loss. This significant decline in profitability raises red flags about the company's financial health and its ability to sustain operations at a profit.

In conclusion, while Under Armour Inc A has demonstrated relative stability in its net profit margin in some periods, the recent negative net profit margin suggests a challenging financial situation that requires attention and strategic management to improve profitability and ensure long-term sustainability.