Interpreting Financial Results - 68738

Solution Posted by
deepeyes
Solution Detail
Price: $10.00
  • From: ,
  • Posted on: Wed 09 Jul, 2014
  • Request id: # 68727
  • Purchased: 4 time(s)
  • Average Rating: No rating
Request Description
Solution Description

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.

Current Ratio “To calculate the current ratio, we divide current assets by current liabilities. More liquidity is better because it means that the firm has a greater ability, at least in the short term, to make payments” (Parrino, Kidwell, & Bates, 2012). Below is a breakout of UA’s three year current ratio.

Current Ratio=Current Assets/Current Liabilities

* 2011:689,663/183,607=3.76

Attachments
Interpreting Financial Results.docx
Interpreting Fi...