Alex Hacikoglu Aaron Shreve Megan Madueno David Stanko FINANCIAL ANALYSIS OF

Under ArmourNorth American Sports Clothing and Accessories company that

develops, markets, and distributes different types of performance athletic apparel

Developed unique moisture wicking fabric for everyday use

Supplier of sportswear and casual apparel

Recently, became latest company to split its stockIssued a stock dividend in the new form of a new trading class.

New Class C Stock

Steph Curry basketball shoes Sales increased by 170% over past 6 months

Summary SlideCurrent P/E: 39. 19

Current EPS: 1.05

Market Price of stock $41.15

Gross Profit (2015): $1,905,547,000

Operating Income: $408,547,000

Vertical Analysis (Income Statement)

Vertical Analysis (Income Statement)

2015 2014 2013

Vertical Analysis (Balance Sheet)

Vertical Analysis (Balance Sheet)

Vertical Analysis (Income Statement)

●Operating Expenses as percentage of total revenue increasing (37.8%,37.6%,37.4%)

●Net Income as percentage of total revenue decreasing (5.9%,6.7%,7.0%)

●Net Income overall is increasing, $232M in 2015, 208M in 2014, and 162M in 2013

Horizontal Analysis (Income Statement)●Gross profit increase from 2013-2014 = $375,536

○ Positive increase of 33.0%

●From 2014-2015 = $393,341○ Positive increase of 26.01%

●Selling and administrative expenses have remained at a constant increase since 2013

●Operating income has been on the rise, despite minor decreases in “income from continuing operations”

Total Other Income/Expenses Net

-7,234 -824 12.85% -6,410 -5,238 446.9% -1,1722015 Change from ‘14 2014 Change from 2013

Horizontal Analysis (Balance Sheet) Cash and cash equivalents have decreased for the past two years,

dropping nearly 80 percentBecause of this Total current assets has experienced a downturn, however the total

assets have still been increasing

This is due to an increase in long term investments, goodwill, and other aspects on the balance sheet

Liabilities have increased around 61.2%, due to a large increase in long term debt for the company.

Analysis of the Income Statement and Balance Sheet

Financials have been fairly positive

Increase in Gross ProfitHowever, gross margin is decreasing

Much of the success of the company is due to more exposure from athletes and other sponsors

Units sold has increased, reflecting the increasing visibility of UAStephen Curry

Jordan Spieth

Inventory and MethodsAudited by PricewaterhouseCoopers LLP

Involved in litigation and other proceedings, including matters related to commercial disputes and intellectual property, as well as trade, regulatory and other claims related to their business.

Under Armour values their inventory using the first-in, first-out method of cost determination.

The property and equipment of Under Armour is depreciated using the straight-line method over the estimated useful lives of the assets: 3 to 10 years for furniture, office equipment, software and plant equipment and 10 to 35 years for site improvements,

Competitors

Analysis of Cash Flows●Net income has been on a steady upward trend for years 2015,

2014, and 2013 but experienced its lowest increase in 2015 of only $24,531.

●In the operating activities it can be seen that Under Armour spent the most on inventories in 2015 with a total of $278,524 and took $191,876 out of their accounts receivable.

● Cash flow from operating activities suffered as a result as they had a total outflow of $44,104

Cont.●When looking at the cash flows from investing activities, Under

Armour spent the most it ever had in 2015 with a total outflow of $847,475.

●The only part of the cash flows where Under Armour actually made money was in the financing activities where they had $384,798 of net borrowings and sold $10,310 of stock.

●This gave them a total inflow $440,078 .

●Despite this pick up by the financing activities, Under Armour still remained at a loss of $463,323 for change in cash and cash equivalents.

2015 2014

Working Capital $1,019,953.00 $1,127,772.00

Current Ratio 3.13 3.67

Quick Ratio 1.18 2.20

Accounts Receivable Turnover 11.11 12.59

Inventory Turnover 3.12 3.13

Ratio of Liabilities to Stockholders Equity 0.72 0.55

Ratio of Net Sales to Assets 1.38 1.47

Rate Earned on Total Assets 8.62% 10.18%

Rate Earned on Stockholder’s Equity 15.41% 17.31%

Earnings Per Share on Common Stock 1.08 0.98

Price Earnings 74.90 69.94

Dividends Per Share 0 0

Decreases from 2014-2015Working Capital

2015: $1,019,953

2014: $1,127,772

Current Ratio2015: 3.13

2014: 3.67

Quick Ratio2015: 1.13

2014: 2.20

Accounts Receivable Turnover2015: 11.11

2014: 12.59

● Rate Earned on Total Assets○ 2015: 8.62%○ 2014: 10.18%

● Rate Earned on Stockholders Equity○ 2015: 15.41%○ 2014: 17.31%

Increases from 2014 - 2015

Earnings Per Share

2015: 1.08

2014: 0.98

Price Earnings

2015: 74.90

2014: 69.94

Under Armour and CapitalismHigher Purpose is specifically aimed at the underdog.

Under Armour is the underdog in their industry.

Their slogan is “I will”

Under Armour looks to partner with organizations for a cause such as power in pink which is the breast cancer support organization

Under Armour continuously practices environmental consciousness New products are labeled “green”, materials are being developed to be made from

more natural materials

Will Under Armour be a good Investment?

Yes, due to the latest signing of talent that under armour has to promote their products they can expect this boost sales and increase income.

UA’s dedication to environmental stability is a pro for investors, as they are focused on making a better planet, something that is attractive to both customers and investors worldwide.