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