Under Armour Inc A (UAA)
Interest coverage
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -38,677 | -45,135 | -33,399 | -70,218 | 226,847 | 241,264 | 311,826 | 291,763 | 303,823 | 306,582 | 264,878 | 334,188 | 423,523 | 526,808 | 661,033 | 605,084 | 350,529 | -320,120 | -484,003 | -478,283 |
Interest expense (ttm) | US$ in thousands | 2,344 | 2,960 | 2,960 | 3,333 | 2,615 | 3,650 | 5,265 | 8,447 | 12,826 | 17,329 | 16,000 | 21,706 | 29,008 | 36,991 | 51,713 | 57,407 | 55,436 | 47,259 | 37,610 | 28,310 |
Interest coverage | -16.50 | -15.25 | -11.28 | -21.07 | 86.75 | 66.10 | 59.23 | 34.54 | 23.69 | 17.69 | 16.55 | 15.40 | 14.60 | 14.24 | 12.78 | 10.54 | 6.32 | -6.77 | -12.87 | -16.89 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-38,677K ÷ $2,344K
= -16.50
The interest coverage ratio of Under Armour Inc A has shown significant fluctuations over the periods analyzed. Initially, the company had negative interest coverage ratios indicating that its operating income was insufficient to cover its interest expenses. However, starting from December 31, 2020, the interest coverage turned positive and began to improve consistently quarter over quarter.
The company's interest coverage ratio increased substantially from March 31, 2023, reaching its peak at December 31, 2023. During this period, the company's operating income was significantly higher than its interest expenses, indicating a strong ability to cover interest payments comfortably.
However, the interest coverage ratio deteriorated sharply from June 30, 2024, to March 31, 2025, with negative values recorded in each quarter. This suggests that Under Armour Inc A's operating income was insufficient to cover its interest payments during this period, which could raise concerns about the company's financial health and ability to service its debt obligations.
Overall, while the company experienced a period of strong interest coverage, the recent negative trends raise some red flags regarding its ability to meet interest expenses in the short term. Investors and analysts may need to closely monitor the company's financial performance and debt management strategies to assess the sustainability of its operations.
Peer comparison
Mar 31, 2025