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Nike Vs Under Armour Case Study

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Nike Vs Under Armour Case Study
UA has significantly less debt than Nike as evidenced by UA's 35.5% debt-to-asset ratio as compared to Nike's 41.8% debt-to-asset ratio. Even though there is a big difference in this number, Nike can cover its interest expense 111.5 times with income before interest and taxes, while UA can only cover its interest expense 66.3 times with their income before interest and taxes. So even though UA has less debt, Nike has the advantage when it comes to paying those debts.
Nike has the advantage for the inventory turnover while UA has the advantage for the accounts receivable turnover ratio. Nike turns over its inventory 4.1 times to UA's 3. times, and UA turns over its accounts receivable 12.6 times to Nike's 8.5 times.
Under Armour has the
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