Under Armour Inc A (UAA)

Return on total capital

Mar 31, 2024 Mar 31, 2023 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 229,751 283,811 486,290 -613,438 236,770
Long-term debt US$ in thousands 594,873 674,478 662,531 1,003,560 592,687
Total stockholders’ equity US$ in thousands 2,153,290 1,966,150 2,088,990 1,675,990 2,150,090
Return on total capital 8.36% 10.75% 17.67% -22.89% 8.63%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $229,751K ÷ ($594,873K + $2,153,290K)
= 8.36%

The return on total capital for Under Armour Inc A has shown variability over the past five years. In the most recent period ending March 31, 2024, the return on total capital was 8.36%, representing a slight decrease from the prior year. While the company achieved a return on total capital of 10.75% in March 2023, it experienced a significant improvement from the return of -22.89% in December 2020.

Notably, the return on total capital peaked at 17.67% in December 2021, indicating a strong performance in utilizing both debt and equity to generate returns. Even though there was a slight decline from this peak in the subsequent years, the return remained positive, suggesting efficient capital management by the company.

The negative return on total capital of -22.89% in December 2020 is a point of concern as it indicates that the company's capital investments during that period did not yield positive returns. Overall, it is essential for Under Armour Inc A to continue monitoring and improving its return on total capital to sustain profitability and strengthen its financial position.


Peer comparison

Mar 31, 2024