Refer to the financial information at the back of the book for Under Armour and Columbia Sportswear.

Question:

Refer to the financial information at the back of the book for Under Armour and Columbia Sportswear.
Required
Part A. The Ratio Analysis Model
For each company, determine:
The debt-to-equity ratio
Is the debt-to-equity ratio of either company too high? Have the companies effectively used lever-age? Replicate the five steps in the Ratio Analysis Model on pages 491-493 to perform the analysis.
1. Formulate the Question
2. Gather the Information from the Calculate the Ratio
4. Compare the Ratio with Other Ratios
5. Interpret the Ratios
Part B. The Business Decision Model
If you were an investor, would you be willing to lend money to either or both companies based on their use of debt?
1. Formulate the Question
2. Gather Information from the and Other Sources
3. Analyze the Information Gathered
4. Make the Decision
5. Monitor Your Decision
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...