FIN 571 – Interpreting Financial Results
Financial ratios play a key role in determining how a company is doing financially either for the good or the bad. Financial Ratios can be used internally or externally to determine how financially stable a company is. For this assignment we will use three common ratios to determine how financially stable and how Under Armour is over the last three years.
UA has been doing very well from profitability perspective. The company’s and net margins have increased to 37.96% in 2013 and 14.41% in 2013 from 21.78% and 3.30% respectively in 2011. Moreover, the company’s return on assets also increased to 6.68% in 2013 from 1.55% in 2011. Focus on growth prospects and accretive acquisitions led to improved operating conditions thereby resulting in higher margins and returns
Current Ratio &ld