How Well Is Under Armour Doing? Essay

1117 Words Nov 4th, 2015 null Page
How well is Under Armour doing? When comparing changes from year to year, or the first nine months of earning to the same period last year we can estimate the successfulness of the company in the form of ratios. It is important to note that earnings per share measurement is only as accurate as the management that reports it. But as the ratio stands, at the year ends of 2013 and 2014, we observe a 23.37% increase. This is caused primarily by a large increase in market value which can be mainly be attributed to still-growing value as the company continues to grow in its growth stage of the company cycle. This in itself is a great ratio but it is also above both the industry and S&P 500 averages. As for the changes in Q3 over the years, we see an increase of 30.32%. There the records show an increase in net income caused by a 27.57%, partially offset by increased expenses. This caused the earnings per share ratio to go up during the year, slightly offset by a small increase in the number of average common shares outstanding. Same reasoning stands for increased market value as it did for the comparison of 10-K’s. When comparing how efficiently has Under Armour used their assets to generate income from year end of December 31,2013 to December 31, 2014, it is important to note the slight decrease from 10.29% to 9.93% which is an alarming change considering the overall fact of industry average being 16.21%. Same trend of decreasing return is happening currently as we see from the…

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