Under Armour Ratio Analysis
Ratio Analysis:
When evaluating a stock five types of ratios are considered: firm value ratios, profitability ratios, activity ratios, financial leverage ratios and liquidity ratios. After completing the proper calculations, assessments of the stock can be prepared. Starting with firm value ratios, Under Armour has earned a net worth of $1,259,559,000. The higher the number, the more valuable the firm is on paper, and to Under Armour, this number is fair compared to other competitors in the industry. Another firm value ratio includes book value and Under Armour possess a book value of $1,966,590,000. This number determines the value of the firm based on how much the company would have leftover in assets if it went out of business immediately. The higher the number the more valuable the company is. Profitability ratios include: return on sales, return on assets and gross profit margin. Under Armour has a 0.04 return on sales, which represents how much the company is able to keep as profits for each dollar of sales. The higher the number, the better ran the company is, and a value of 0.04, which is average compared to other competitors in the industry. The gross profit margin determines how much the company is able to keep as profit for each dollar of sales. Under Armour bears a gross profit …show more content…
However, on January 31, 2017 the stock dropped nearly 25% due to a collaboration of "weak sales" and the fact that a "chief financial officer was stepping down for 'personal reasons'. Wall Street often assumes that an executive leaving for 'personal reasons' is a sign that a company is in trouble and that someone needs to take the fall" (http://money.cnn.com/2017/01/31/investing/under-armour-stock-earnings-nike). Other than the weak start to the new year and the hard hit to the stock, Under Armour has stayed relatively consistent with slight
When evaluating a stock five types of ratios are considered: firm value ratios, profitability ratios, activity ratios, financial leverage ratios and liquidity ratios. After completing the proper calculations, assessments of the stock can be prepared. Starting with firm value ratios, Under Armour has earned a net worth of $1,259,559,000. The higher the number, the more valuable the firm is on paper, and to Under Armour, this number is fair compared to other competitors in the industry. Another firm value ratio includes book value and Under Armour possess a book value of $1,966,590,000. This number determines the value of the firm based on how much the company would have leftover in assets if it went out of business immediately. The higher the number the more valuable the company is. Profitability ratios include: return on sales, return on assets and gross profit margin. Under Armour has a 0.04 return on sales, which represents how much the company is able to keep as profits for each dollar of sales. The higher the number, the better ran the company is, and a value of 0.04, which is average compared to other competitors in the industry. The gross profit margin determines how much the company is able to keep as profit for each dollar of sales. Under Armour bears a gross profit …show more content…
However, on January 31, 2017 the stock dropped nearly 25% due to a collaboration of "weak sales" and the fact that a "chief financial officer was stepping down for 'personal reasons'. Wall Street often assumes that an executive leaving for 'personal reasons' is a sign that a company is in trouble and that someone needs to take the fall" (http://money.cnn.com/2017/01/31/investing/under-armour-stock-earnings-nike). Other than the weak start to the new year and the hard hit to the stock, Under Armour has stayed relatively consistent with slight