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Under Armour Financial Strength

: 7 (As of Jun. 2022)
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Under Armour has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Under Armour's Interest Coverage for the quarter that ended in Jun. 2022 was 5.74. Under Armour's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.27. As of today, Under Armour's Altman Z-Score is 2.88.


Competitive Comparison

For the Apparel Manufacturing subindustry, Under Armour's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Under Armour Financial Strength Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Under Armour's Financial Strength distribution charts can be found below:

* The bar in red indicates where Under Armour's Financial Strength falls into.



Under Armour Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Under Armour's Interest Expense for the months ended in Jun. 2022 was $-6 Mil. Its Operating Income for the months ended in Jun. 2022 was $34 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,324 Mil.

Under Armour's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*34.483/-6.005
=5.74

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Under Armour's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(131.438 + 1323.667) / 5396.228
=0.27

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Under Armour has a Z-score of 2.88, indicating it is in Grey Zones. This implies that Under Armour is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.88 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Under Armour  (NYSE:UAA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Under Armour has the Financial Strength Rank of 7.


Under Armour Financial Strength Related Terms

Thank you for viewing the detailed overview of Under Armour's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Under Armour Business Description

Under Armour logo
Address
1020 Hull Street, Baltimore, MD, USA, 21230
Under Armour develops, markets, and distributes athletic apparel, footwear, and accessories in North America and other territories. Consumers of its apparel include professional and amateur athletes, sponsored college and professional teams, and people with active lifestyles. The company sells merchandise through wholesale and direct-to-consumer channels, including e-commerce and more than 400 total global factory house and brand house stores. Under Armour also operates a digital fitness app called MapMyFitness. The Baltimore-based company was founded in 1996.
Executives
Devard Jerri director 120 E 87TH STREET #P6A NEW YORK NY 10128
Moore Westley director 325 WEST HURON STREET SUITE 412 CHICAGO IL 60654
Baratto Massimo officer: Chief Consumer Officer 1020 HULL STREET BALTIMORE MD 21230
Browne Colin officer: Chief Operating Officer 1020 HULL STREET BALTIMORE MD 21230
Rocker Tchernavia officer: Chief Administrative Officer 3700 WEST JUNEAU AVENUE MILWAUKEE WI 53202
Pugliese Stephanie L. officer: President, Americas 170 COUNTRYSIDE DRIVE BELLEVILLE WI 53508
Frisk Patrik officer: CEO & President 1020 HULL STREET BALTIMORE MD 21230
Bergman David officer: Chief Financial Officer 1020 HULL STREET BALTIMORE MD 21230
Collier Lisa K. officer: Chief Product Officer 1020 HULL STREET BALTIMORE MD 21230
Maheshwari Aditya officer: Chief Accounting Officer 1020 HULL STREET BALTIMORE MD 21230
Olson Eric T director C/O IRIDIUM COMMUNICATIONS INC. 1750 TYSONS BOULEVARD, SUITE 1400 MCLEAN VA 22102
El-erian Mohamed director C/O UNDER ARMOUR, INC. 1020 HULL STREET BALTIMORE MD 21230
Katz Karen director
Gibbs David W director 7100 CORPORATE DRIVE PLANO TX 75024
Stanton John Patrick officer: EVP, General Counsel 1020 HULL STREET BALTIMORE MD 21230

Under Armour Headlines

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