To help you understand and compare the performance of two companies in the same industry.

Go to the Columbia Sportswear Company Annual Report located in Appendix A. Now access the 2016 Annual Report for Under Armour, Inc. For instructions on how to access the report online, see the Industry Analysis in Chapter 1.

Requirements

Answer these questions about the two companies.

1. In terms of net sales or net revenue, which company is larger for the year ending December 31, 2016? Which financial statement did you look at to find that information?

2. In terms of total assets at December 31, 2016, which company is larger? Which financial statement did you look at to find that information?

3. Which company has more total debt at December 31, 2016? Which financial statement did you look at to find that information?

4. Which company has the higher gross profit percentage for the year ending December 31, 2016? Don’t know that one? On the Consolidated Statements of Operations/Income, divide Gross Profit by Net Sales (or Net Revenues). What exactly does this mean?

5. Which company paid more dividends in 2016? Which financial statement did you look at to find that information?

6. Which company’s stock would you rather own? Why?