Over the past three years, Under Armour’s operating margin has decreased from 11.5% in 2014 to 10.3% in 2015 to 8.7% in 2016. Meanwhile, Nike’s operating margin has stayed somewhat consistent with 13.6% in 2015, 13.9% in 2016, and 13.8% in 2017. Similar to Nike, Lululemon stayed consistent with 20.9% in 2015, 20.5% in 2016, and 23.4% in 2017. This is an indication of the company's profitability from current operations before tax. Each company is looking to improve long-term growth for future investments.
Long-term growth- To achieve successful long-term growth it is important to pay attention to total liabilities. If a firm has more cash than liabilities, it will become useful in net cash per share. In addition, retained earning must …show more content…
There was increase by $86.4million to $358.1 million. The inventory purchases and the change in prepaid and receivable income taxes decrease, while the net income increased, causing the increase. But, in 2016 the operating activities decreased due to an increase in inventory and prepaid and receivable income taxes. For investing activities, which relates to capital expenditures (CAPEX), increased each year by millions. The financing activities decreased from 2015 to 2016 and then increased from 2016 to 2017. The cause of these changes was due to Lululemon’s stock repurchase program. Each of these aspects causing the change in cash to increase each …show more content…
When it comes to their manufacturing there is controversial history. Multiple times human rights were violated in their factories. Since these violations, Nike has an extensive amount of information on their Corporate Social Responsibility on their website. They are the most transparent company due to this. Nike may be doing well in this area now, but it is something that needs to be watched out for due to their past.
Lululemon promotes a healthy lifestyle. But, the technical textiles that are required for Lululemon’s apparel is harmful to the environment, as well as the workers in the factories.
Under Armour has not had many issues relating to CSR. They provide safe working conditions, a living wage, and a reasonable work schedule to all employees, their suppliers, and manufactures.
Furthermore, some information that could help the analysis of each of these companies would be how each company plans to raise their capital growth to be successful for future growth. Is the company going to buy back common shares or instead save their cash for future investments? Also, what is the company doing to assure long term value? Without knowing the long-term value, an investor could be torn on whether or not to invest. It is crucial to know what could potentially risk the
Long-term growth- To achieve successful long-term growth it is important to pay attention to total liabilities. If a firm has more cash than liabilities, it will become useful in net cash per share. In addition, retained earning must …show more content…
There was increase by $86.4million to $358.1 million. The inventory purchases and the change in prepaid and receivable income taxes decrease, while the net income increased, causing the increase. But, in 2016 the operating activities decreased due to an increase in inventory and prepaid and receivable income taxes. For investing activities, which relates to capital expenditures (CAPEX), increased each year by millions. The financing activities decreased from 2015 to 2016 and then increased from 2016 to 2017. The cause of these changes was due to Lululemon’s stock repurchase program. Each of these aspects causing the change in cash to increase each …show more content…
When it comes to their manufacturing there is controversial history. Multiple times human rights were violated in their factories. Since these violations, Nike has an extensive amount of information on their Corporate Social Responsibility on their website. They are the most transparent company due to this. Nike may be doing well in this area now, but it is something that needs to be watched out for due to their past.
Lululemon promotes a healthy lifestyle. But, the technical textiles that are required for Lululemon’s apparel is harmful to the environment, as well as the workers in the factories.
Under Armour has not had many issues relating to CSR. They provide safe working conditions, a living wage, and a reasonable work schedule to all employees, their suppliers, and manufactures.
Furthermore, some information that could help the analysis of each of these companies would be how each company plans to raise their capital growth to be successful for future growth. Is the company going to buy back common shares or instead save their cash for future investments? Also, what is the company doing to assure long term value? Without knowing the long-term value, an investor could be torn on whether or not to invest. It is crucial to know what could potentially risk the