Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for “Under Armour” under Company Filings. When you see the list of filings for the company, select the Form 10-K for 2016. Be sure to retrieve the 2016 financial statements, not another year.

Requirements

1. Calculate ratios for 2015 and 2016 to determine the following for Under Armour:

a. The company’s ability to pay its current liabilities. Was 2016 stronger or weaker than 2015?

b. The company’s inventory turnover and days inventory outstanding (DIO); accounts receivable turnover and days sales outstanding (DSO), accounts payable turnover and days payable outstanding (DPO), and the number of days in its cash conversion cycle. 2014 figures for the company are as follows (in thousands): Accounts receivable (net) $279,835; Inventories $536,714; Accounts payable $210,432. Was 2016 stronger or weaker than 2015 based on these measures? (Assume all sales were on account.)

c. The company’s rates of return on sales (ROS), average total assets (ROA), and average stockholders’ equity (ROE), using DuPont analysis. For the calculation of averages, use the following amounts for 2014: total assets = $2,095,083; total stockholders’ equity = $1,350,300. Did these ratios get stronger or weaker in 2016 compared to 2015?

2. Find Under Armour, Inc.’s, annual report for 2017 at www.sec.gov. Also research the company using an Internet site such as MSN Money or Yahoo! Finance to update the information in question 1.

3. What in your opinion is the company’s outlook for the future? Would you buy the company’s stock as an investment? Why or why not?