Under Armour Inc A (UAA)

Interest coverage

		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
Interest expense	US$ in thousands	28,800	5,292	18,091	17,270	4,254
Interest coverage		7.98	53.63	26.88	-35.52	55.66

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $229,751K ÷ $28,800K
= 7.98

The interest coverage ratio reflects the ability of Under Armour Inc A to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Looking at the trend over the past five periods, the interest coverage ratio for Under Armour Inc A has fluctuated significantly. In the most recent period ending on March 31, 2024, the interest coverage ratio stood at 7.98. This indicates that the company's operating income was sufficient to cover its interest expenses approximately 7.98 times.

Compared to the prior periods, the interest coverage ratio was significantly higher in March 31, 2023, at 53.63, Dec 31, 2021, at 26.88, and Dec 31, 2019, at 55.66. These figures suggest a strong ability to cover interest expenses during those periods.

However, the interest coverage ratio was negative in Dec 31, 2020, at -35.52, indicating that the operating income was not sufficient to cover interest expenses during that particular period.

In summary, the interest coverage ratio of Under Armour Inc A has shown variability over the past five periods, with strong coverage in some years and a significant decline leading to a negative ratio in one year. Monitoring this ratio is crucial for stakeholders to assess the company's ability to meet its interest obligations in the future.