The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C.

Instructions

a. Based on the information contained in these financial statements, determine the following values for each company.

1. Profit margin for 2020.

2. Gross profit for 2020 .

3. Gross profit rate for 2020 .

4. Operating income for 2020 .

5. Percentage change in operating Income from 2019 to 2020 . (For Columbia, use Income from operations.)

b. What conclusions concerning the relative profitability of the two companies can be drawn from these data?

Data from Appendix b

Data from Appendix C

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COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Net sales Cost of sales Gross profit Selling, general and administrative expenses Net licensing income Income from operations Interest income, net Other non-operating income (expense), net Income before income tax Income tax expense Net income Net income attributable to non-controlling interest Net income attributable to Columbia Sportswear Company Earnings per share attributable to Columbia Sportswear Company: Basic Diluted Weighted average shares outstanding: Basic Diluted Year Ended December 31, 2020 2019 2018 $2,501,554 $3,042,478 $2,802,326 1,277,665 1,526,808 1,415,978 1,223,889 1,515,670 1,386,348 1,098,948 1,136,186 1,051,152 15,786 350,982 9,876 12,108 137,049 435 2,039 139,523 (31,510) 108,013 $ 108,013 15,487 394,971 8,302 2,156 405,429 (74,940) 330,489 66,376 66,772 $ 1.63 $ 4.87 1.62 $ $ 360,717 (85,769) 274,948 6,692 $ 330,489 $ 268,256 (141) $ 3.85 4.83 $ 3.81 67,837 68,493 69,614 70,401