Financial Overview of Under Armour, Inc. Essay

1255 Words Nov 28th, 2013 6 Pages
Progress Report 1

October 31, 2013
Company Background

Under Armour is an American sports clothing and accessories company. Under Armour is a supplier of casual apparel and sportswear. The global headquarter of Under Armour is located in Baltimore, Maryland. The firm has started offering footwear in the year 2006. The European headquarters are in Amsterdam’s Olympic Stadium while the additional offices are in Hong Kong, Jakarta, Indonesia, China, Canada, Toronto, Denver and Guanghour. Under Armour was established in the year 1996. Kevin Plank is the founder of Under Armour. Under Armour is one of the leading provider of high performance sports, and there are almost 1400 employees working in Under Armour
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Under Armour’s technology, propaganda and product quality have increased the company’s size and net worth over the past few years. In the Annual Report of 2008, the company reported net income of 38,229,000. In last year’s (2012) Annual Report, Net Income was an outrageous 128,778,000. This indicates a growth rate of 336% percent. I believe that this trend is going to resume and that Under Armour will continue to grow. Additionally, Under Armour’s Income Statement indicates a gross margin percentage of 51.7%, 49.6%, 49.1% for 2010, 2011 and 2012 respectively. The gross margin percentage is useful for determining the value of incremental sales and to guide pricing and promotion decision. We can observe that over the years the percentage slowly decreases. With this percentage, we can predict that this trend will continue.

Understanding the Annual Report and 10K

As of December 31, 2012
Total assets = $1,157,083
Cash & cash equivalents = 341,841/1,157,083 = 0.29543 = 29.543%
Accounts receivable, net = 175,524/1,157,083 = 0.15170 = 15.170%
Inventories = 319,286/1,157,083 = 0.27594 = 27.594%
Prepaid expenses & other current assets = 43,896/1,157,083 = 0.37937 = 37.937%
Deferred income taxes = 23,051/1,157,083 = 0.01992 = 1.992%
Total current assets = 903,598
Property & equipment, net =

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