Under Armour Inc A (UAA)

Operating return on assets (Operating ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021
Operating income	US$ in thousands	-127,247	229,751	263,586	486,290	486,290
Total assets	US$ in thousands	4,300,870	4,760,730	4,857,080	4,991,400	4,991,400
Operating ROA		-2.96%	4.83%	5.43%	9.74%	9.74%

March 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $-127,247K ÷ $4,300,870K
= -2.96%

Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate earnings from its operational assets. For Under Armour Inc A, the trend in operating ROA has shown some fluctuations over the years, as follows:

1. As of December 31, 2021, the operating ROA was 9.74%, indicating that the company generated a respectable return on its operational assets at that time.

2. The operating ROA remained stable at 9.74% as of March 31, 2022, suggesting consistent operational efficiency in utilizing its assets to generate earnings.

3. However, there was a notable decrease in operating ROA to 5.43% as of March 31, 2023, which may indicate challenges in maintaining profitability relative to its asset base.

4. The trend continued with a further decline in operating ROA to 4.83% as of March 31, 2024, signaling a continued struggle in efficiently generating earnings from its operational assets.

5. The most recent data point shows a significant negative operating ROA of -2.96% as of March 31, 2025, indicating a substantial decline in profitability and a potential inefficiency in utilizing operational assets to generate positive returns.

In conclusion, the analysis of Under Armour Inc A's operating ROA reveals a mixed performance over the years, with fluctuations in the company's ability to generate earnings from its operational assets. The negative operating ROA in the most recent period warrants further investigation into the underlying factors impacting the company's profitability and asset utilization efficiency.