Under Armour Inc A (UAA)
Interest coverage
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 232,655 | 271,468 | 296,607 | 270,258 | 283,811 | 334,683 | 412,088 | 413,883 | 486,290 | 456,005 | 342,511 | 51,632 | -613,438 | -595,211 | -514,861 | -356,669 | 236,770 | 152,250 | 132,296 | 38,903 |
| Interest expense (ttm) | US$ in thousands | 23,548 | 15,396 | 10,244 | 11,244 | 11,244 | 4,585 | 7,602 | 12,166 | 16,891 | 30,262 | 31,740 | 22,480 | 17,270 | 10,974 | 5,994 | 4,254 | 4,254 | 3,654 | 3,654 | 3,654 |
| Interest coverage | 9.88 | 17.63 | 28.95 | 24.04 | 25.24 | 73.00 | 54.21 | 34.02 | 28.79 | 15.07 | 10.79 | 2.30 | -35.52 | -54.24 | -85.90 | -83.84 | 55.66 | 41.67 | 36.21 | 10.65 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $232,655K ÷ $23,548K
= 9.88
The interest coverage ratio for Under Armour Inc A has shown significant variability over the periods analyzed. Generally, a higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations with its earnings.
Looking at the trend, the interest coverage ratio for the company has been relatively strong in recent quarters, with values well above 10 in the last five quarters. Particularly, from Sep 30, 2022, to Mar 31, 2024, the company had consistently high interest coverage ratios, indicating a solid ability to cover its interest payments with its operating income.
However, there have been some periods of volatility in the past, notably in Dec 31, 2019, when the interest coverage ratio was notably lower at 10.65. This could suggest potential challenges in meeting interest obligations at that time.
It is important for investors and stakeholders to monitor the interest coverage ratio over time to ensure that the company's financial health remains stable and that it can meet its debt obligations without significant strain on its earnings.
Peer comparison
Mar 31, 2024