Dummy
Hassan Alibrahim MGMT 488 01/23/21 Under Armour Financial Analysis Sales Revenue: Under Armour has shown progressive increases in sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully, as shown in the Table below. This was the period when the sales growth of the company was at the peak. The Year-on-Year sales for the company was increasing rapidly. These increases year over year in sales revenue are attributable to two key areas: (1) Under Armor’s yearly revenue increases in Apparel, Footwear, License Revenues, and Connected Fitness, and (2) its yearly international revenue growth in foreign markets. In 2014, Apparel revenue was led by Under Armour’s train category, Footwear revenue was driven by the run category. Similarly, in 2013, Footwear revenue continued to increase as a result of the run category. While Under Armour’s revenue is increasing in North America, its revenue also increased in its three other international segments: EMEA, Asia-Pacific, and Latin America. Armour’s revenues for these three regions increased for several reasons: (1) EMEA experienced unit sales growth in its wholesale channel, notably in the United Kingdom, Italy, and Spain; (2) Asia-Pacific experienced unit sales growth in its wholesale channel and direct-to-consumer channel, particularly in China; and (3) Latin America experienced unit sales growth in its wholesale channel, primarily in Mexico and Chile. Earnings Per Share: For 2012, 2013, and 2014, Under Armour’s Basic EPS were $0.32, $0.39, and $0.47, respectfully, which are shown in the Table below. EPS is based on net income less preferred dividends divided by shares of outstanding stock. Since the sales revenue of the company is increasing each year the EPS is also increasing each year. Sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully. The EPS has not increased in the same proportion as the revenue because the operating margins of the company is decreasing. Return on Equity: Like EPS, return on equity (ROE) is based on net income. ROE is calculated by dividing net income by the average total stockholders’ equity. So, for 2012, 2013, and 2014, Under Armour’s ROE was 17.56%, 17.44%, and 17.22%, respectfully as shown in the Table below. Under Armour has shown progressive increases in sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully, as shown in Table 1. For 2012, 2013, and 2014, Under Armour’s Basic EPS were $0.32, $0.39, and $0.47, respectfully, which are shown in the Table below. This was the period when the sales growth of the company was at the peak. The Year-on-Year sales for the company was increasing rapidly. Since the sales of the Under Armour’s is increasing the Return on Equity is also increasing. But due to the rising Operating cost of the company, the Net Profit of the company has not increased in the same manner as the Revenue of the company has increased. Hence the Return on Equity of the company has also not increased as much as the revenue of the company has increased. Stock Price: Under Armour’s stock price is dependent on several factors: (1) how it is projected to perform, (2) how it is actually performing, and (3) how it has performed in the past. Because Under Armour’s performance trends upward—for example, its sales revenue is increasing, its costs tend to decrease compared to sales revenue, and it has positive performance overall— Under Armour’s stock price has increased from 2012 to 2014. For 2012, 2013, and 2014, Under Armour’s stock price closed at $12.1325, $21.825 and $33.95 per share, respectfully, as shown in the Table below. The company was one of the favorite stocks for the investors because of the rising revenues of the company. The demand for the share kept the stock price of the company high. Since the sales revenue of the company is increasing each year the EPS is also increasing each year which also attracted more investors and thus the share price of the company kept on rising. While Under Armour’s revenue is increasing in North America, its revenue also increased in its three other international segments: EMEA, Asia-Pacific, and Latin America. Armour’s revenues for these three regions increased for several reasons: (1) EMEA experienced unit sales growth in its wholesale channel, notably in the United Kingdom, Italy, and Spain; (2) Asia-Pacific experienced unit sales growth in its wholesale channel and direct-to-consumer channel, particularly in China; and (3) Latin America experienced unit sales growth in its wholesale channel, primarily in Mexico and Chile. Since the company has seen rise in the sales revenue in the other countries as well, the investors are possessive about the financial results of the company and hence the Stock Price of the company is very high. Current Ratio: For 2012, 2013, and 2014, Under Armour’s current ratio was 3.58, 2.65, and 3.68, respectfully, as shown in the Table below. The current ratio is calculated by dividing current assets by current liabilities. Thus, the current ratio shows a company’s short-term liquidity. A higher ratio (i.e., a larger number) means that a company is more liquid, while a lower ratio (i.e., a smaller number) means that a company is less liquid. As such, Under Armour has progressively become less liquid over the past three years. This increase in liquidity resulted from Under Armour’s current assets increasing faster than its current liabilities. The Current Ratio is rising due to the rising sales of the company. Under Armour has shown progressive increases in sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully, as shown in Table 1. This was the period when the sales growth of the company was at the peak. The Year-on-Year sales for the company was increasing rapidly. These increases year over year in sales revenue are attributable to two key areas: (1) Under Armor’s yearly revenue increases in Apparel, Footwear, License Revenues, and Connected Fitness, and (2) its yearly international revenue growth in foreign markets. In 2014, Apparel revenue was led by Under Armour’s train category, Footwear revenue was driven by the run category. Similarly, in 2013, Footwear revenue continued to increase as a result of the run category. Due to the increasing sales the Inventory of the company was also rising and the debtors of the company was also increasing. Thus, the Current Ratio of the company kept on increasing. Thus, we can say the company is fairly Liquid in the years 2012, 2013, and 2014. Debt-to-Equity Ratio: Under Armour’s debt-to-equity ratio has slowly been increasing year after year. In 2012, it was 0.42; in 2013, it was 0.5; and in 2014, it was 0.55—as noted in the Table below. The debt-to-equity ratio is calculated by dividing total liabilities by total stockholders’ equity, so it shows for each dollar of stockholder equity how much debt the company has. In 2012, for example, $1.00 of equity had an associated $0.42 of debt. Thus, Under Armour has been relying more on debt in recent years (e.g., 2013 and 2014) than it did in 2012. This is shown by Under Armour’s total liabilities increasing faster than its total stockholders’ equity. Therefore, Under Armour’s reliance on creditors is increasing slightly, meaning that Under Armour is becoming more leveraged. That way, stockholders’ investments are earning more than previously possible without additional stockholder investment. Since the company has not raised any major debt during the years, hence the Debt-Equity ratio has not changed much during these years. Table and Figures: 1. Under Armour Selected Financial Information for 2012, 2013, and 2014: Particulars 2012 2013 2014 Sales Revenue (Millions of US $) $1,835 $2,332 $3,084 Earnings Per Share (EPS) $0.32 $0.39 $0.47 Return on Equity (ROE) 17.56% 17.44% 17.22% Stock Prices 12.1325 21.825 33.95 Current Ratio 3.58 2.65 3.68 Debt-Equity Ratio 0.42 0.5 0.55 Note: Numbers are in Millions, except for per share amounts and ratios. Parenthesizes denote a loss/a negative number. All financial information but stock price was determined from the Under Armour annual reports, while the stock price was determined by referencing Yahoo! Finance. Figures: 1. Under Armour’s Sales Revenue for 2012, 2013, and 2014: 2. The Earnings Per Share (EPS) of Under Armour for the years 2012, 2013 and 2014 is as under: 3. The Return on Equity (ROE) of Under Armour for the years 2012, 2013 and 2014 is as under: 4. The Stock Prices of Under Armour for the years 2012, 2013 and 2014 is as under: 5. The Current Ratio of Under Armour for the years 2012, 2013 and 2014 is as under: 6. The Debt-Equity Ratio of Under Armour for the years 2012, 2013 and 2014 is as under: References: 1. Under Armour. Annual Report 2014. Retrieved from https://underarmourinc.gcs-web.com/static-files/13a42846-a519-469e-978b-b3199de9fbe8 Under Armour’s Sales Revenue for 2012, 2013, and 2014 Sales Revenue201220132014#REF!000 The Earnings Per Share (EPS) of Under Armour for the years 2012, 2013 and 2014 Earning Per Share (EPS)201220132014#REF!000 Return on Equity (ROE) 2012201320140.175600000000000010.17440.17219999999999999 Stock Prices 20122013201412.132521.82499999999999933.950000000000003 Current Ratio 2012201320143.582.653.68 Debt-Equity Ratio 2012201320140.420.50.55000000000000004 I need someone to do a market analysis for me, it's for Under Armour. For my management cases-problems class. I will attache the financial analysis I did the file named " Used this -- UA financial analysis" please use it if you as the professor mentioned, and also I will attach an example of market analysis please make this look like it but shorter. Let me know if you have any questions. Market Analysis USE THE SAME ANNUAL REPORTS YOU USED IN YOUR FINANCIAL ANALYSIS Example Place for Data: https://www.statista.com/topics/2470/under-armour/(Links to an external site.) 1. Analyze the market, market players, industry competitive structure. How does UA go to market and compete? Evaluate and discuss UA’s performance. 2. Illustrate UA's market performance. Make sure you know the market size, who the main the competitors are, there market share. Verbalize this as well as illustrate it in the case analysis. What is the total size in US Dollars ($) of the market....IS IT GOING UP, DOWN, STAYING THE SAME? I