Under Armour Inc A (UAA)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.32 | 0.00 |
| Financial leverage ratio | 2.21 | 2.43 | 2.39 | 2.39 | 3.00 |
The solvency ratios of Under Armour Inc A indicate its ability to meet its long-term financial obligations and the extent to which the company relies on debt to finance its operations.
1. Debt-to-assets ratio:
- The debt-to-assets ratio has remained relatively stable over the years, with a slight decrease from 0.14 in 2023 to 0.12 in 2024. This indicates that 12% of the company's assets are financed by debt, suggesting a low reliance on debt for asset funding.
2. Debt-to-capital ratio:
- The debt-to-capital ratio shows a decreasing trend from 0.37 in 2020 to 0.22 in 2024. This indicates that debt accounts for 22% of the company's capital structure, showing a favorable decrease in reliance on debt for capital funding.
3. Debt-to-equity ratio:
- The debt-to-equity ratio has also decreased from 0.60 in 2020 to 0.28 in 2024. This signifies that debt represents 28% of the company's equity, indicating improved financial health and reduced dependency on debt financing.
4. Financial leverage ratio:
- The financial leverage ratio has shown a declining trend from 3.00 in 2020 to 2.21 in 2024. This indicates that the company's assets are financed by 2.21 times its equity, reflecting a lower level of financial risk and leverage.
Overall, the trends in Under Armour Inc A's solvency ratios suggest a more conservative approach to debt financing and an improved financial position, as the company has reduced its reliance on debt to finance its operations and assets over the years.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Dec 31, 2021 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | — | 26.88 | 3.31 |
The interest coverage ratio of Under Armour Inc A has fluctuated over the past five years. In March 2024, the interest coverage ratio was 7.98, indicating that the company generated enough earnings before interest and taxes to cover its interest expense approximately 8 times. This represents a decrease compared to March 2023, where the interest coverage ratio was significantly higher at 53.63, suggesting a stronger ability to meet its interest obligations.
Looking further back, in December 2021, the interest coverage ratio was 26.88, reflecting a robust ability to cover interest payments. However, in December 2020, the ratio dropped to -35.52, indicating that the company's earnings were insufficient to cover its interest expenses during that period. The interest coverage ratio then rebounded in December 2019 to 55.66, signaling a strong ability to meet interest obligations.
Overall, the fluctuations in the interest coverage ratio over the years indicate varying levels of financial health and risk for Under Armour Inc A. It is important for investors and stakeholders to monitor these ratios closely to assess the company's ability to manage its debt and interest payments effectively.