Case C.21.13 What observation can be made from studying UA's financial statements? O A. The firm's stock price is too low. OB. The firm is fairly liquid with a current ratio over 2.0. OC. The firm's dividend payments are too low OD. The firm has not purchased other firms in excess of book value. CASE 21 . UNDER ARMOU EXHIBIT 2 Under Armour's Income Statements (in thousands USD) Cost of Goods Sold 2,584,724 12/31/16 $4,825.335 12/31/17 Income Statement Revenues Percent Change 3.13% 5.92% -0.08% Gross Profit Operating Expenses EBIT 21.27% $4,976,553 2,737,830 2,238,723 2,210,880 27.843 38,152 (10,309) 37,951 0 (48,260) 2,240,611 1,823,140 417,471 29,189 388,282 131,303 0 256,979 Interest Expense EBT --93.33% 30.71% -102.66% -71.10% NA --118.78% Tax Non-Recurring Events Net Income NA Source: Based on 2017 4Q Report and other company data. Source: Based on 2017 4Q Report and company data. EXHIBIT 3 Under Armour's Balance Sheets (in thousands USD) Balance Sheet 12/31/16 12/31/17 Percent Change Assets Cash and Short-Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Property Plant & Equipment Goodwill Intangibles Other Long-Term Assets Total Assets $250,470 622,685 917,491 174,507 1,965,153 804,211 563,591 64,310 247,066 3,644,331 1 $312,483 609.670 1.158,548 256,978 2,337,679 885,774 555,674 46,995 180,245 4,006,367 25% -2% 26% 47% 19% 10% -1% -27% -27% 10% + 37% 81% 55% 409,679 276,137 685,816 790,388 137,227 1.613.431 Liabilities Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities Equity Common Stock Retained Earnings Treasury Stock Paid in Capital & Other 561,108 499,267 1,060,375 765,046 162,304 1,987.725 -3% 18% 23% NA 145 1,259,414 0 771,341 2,030,900 3,644,331 146 1.184,441 0 834,055 2,018,642 4,006,367 1% 6% NA 8% -1% Total Equity 10% Total Liabilities and Equity EXHIBIT 4 Under Armour's Revenues by Product (in thousands USD) 2017 2016 2015 Apparel $3,287,121 $3,229.142 Footwear $1,037,840 $1,010,693 Accessories $445,838 $406,614 Other $205,754 $178,886 Total $4,976,553 $4,825,335 Source: Based on the company's 2017 4Q report and other data. $2,801,062 $677,744 $346,885 $137,622 $3,963,313