Under Armour Inc A (UAA)

Return on total capital

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Dec 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	229,751	263,586	526,808	486,290
Long-term debt	US$ in thousands	—	—	—	—	662,531
Total stockholders’ equity	US$ in thousands	1,890,280	2,153,290	1,998,400	2,088,990	2,088,990
Return on total capital		0.00%	10.67%	13.19%	25.22%	17.67%

March 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,890,280K)
= 0.00%

The return on total capital for Under Armour Inc A has shown varying trends over the past few years. As of December 31, 2021, the return on total capital was 17.67%, indicating that for every dollar of total capital employed, the company generated a return of 17.67%. This figure increased significantly to 25.22% as of March 31, 2022, reflecting improved efficiency in utilizing its total capital.

However, the return on total capital decreased to 13.19% as of March 31, 2023, and further dropped to 10.67% as of March 31, 2024. These declines may suggest challenges in generating adequate returns relative to the capital invested in the business.

Notably, as of March 31, 2025, the return on total capital was reported as 0.00%, implying that the company did not generate any return on its total capital during that period. This could raise concerns about the company's profitability and capital efficiency.

Overall, it is essential for Under Armour Inc A to address these fluctuations in return on total capital to ensure sustainable and profitable operations in the long term.