Comparing Under Armour 's Working Capital From The Nine Months Essay

Comparing Under Armour 's Working Capital From The Nine Months Essay

Length: 1526 words (4.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Financial Statements
The following ratios gives an insight of Under Armour’s liquidity and efficiency. When comparing Under Armour’s working capital from the nine months ended September 30, 2014 to the nine months ended September 30, 2015 it is obvious that the amount of working capital decreased from $973,424 to $926,665. When observing the inventory to net working capital it is surprising that it increased much more drastically from 65.49% to 93.57%. This increase is due to an 36.02% increase in Under Armour’s inventories. Usually this number should not exceed 80% which means that the company needs to sell some of their inventories. Under Armour’s current ratio decreased from 2.98 in September 2014 to 2.09 in September 2015. This decrease is due to higher accrued expenses and more maturities of long term debt during 2015 in their current liabilities section of the balance sheet. Moreover, Under Armour’s quick ratio decreased from September 2014 to September 2015 from 1.51:1 to 0.91:1 which is once again in majority due to their 36.02% increase in inventories. Under Armour’s accounts receivable turnover ratio improved slightly from 12.1 in 2013 to 12.59 in 2014. Therefore, their average collection periods also improved from 30.17 days to 29 days. Under Armour’s accounts receivable turnover and average collection period are better than the industry average which is 10 or 36.5 days. This means that the company collects their money slightly faster than other companies in the same industry. Moreover, the majority of Under Armour’s accounts receivable is owed by large sporting goods retailers. Under Armour’s inventory turnover improved slightly from 3.03 in 2014 to 3.13 in 2013 to 3.13 in 2014. Therefore, their days in inventory also ...

... middle of paper ...

...reased about $55.5 million from 2013 to 2014. This increase was mainly due to the $250 million of Proceeding from term loan in 2014, which is $150 million more comparing to $100 million of borrowing under proceed revolving credit facility in 2013. Overall, cash has increased in both 2014 and 2013 but very little in 2013. The reason why 2013 had a smaller increase in cash is mainly due to their investing and operating activities. While in 2014 the cash flow from operating activities was $219,033, in 2013 it was $120,070. Also in 2014 the cash flow from investing activities was decreased by $152,312, in 2013 was decreased by $238,102. The financing activities between the years had a difference of $55,511 which was the second smallest change. The effect of exchange rates on cash and cash equivalents was so small in difference that it doesn’t really make a difference.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Unconstitutionality of Capital Punishment Essay

- The Unconstitutionality of Capital Punishment Capital punishment is one of the most popularly debated topics in the nation today. Since colonial times, more than 13,000 people have been legally executed. A large percentage of these executions occurred during the early 1900's. In the 1930's, as many as 150 people were being legally executed every year. However, the number of executions started to decrease as public outrage became apparent. In 1996, thirty-seven states, including New Jersey, legalized the death penalty....   [tags: Argumentative Persuasive Essays]

Better Essays
2415 words (6.9 pages)

Comparing Two Arguments on Capital Punishment Essay

- Comparing Two Arguments on Capital Punishment In these two short essays, one by Anthony G. Amsterdam and another by Ernest Van Den Haag both authors make two very important views. Although one supports capital punishment and one is against capital punishment, both authors have good reasons to support their case. Amsterdam believes that capital punishment is a brutal process that a murderer has to go through. Amsterdam believes that the murderer should be punished for their actions, but should not go through capital punishment....   [tags: Compare Contrast, Death Penalty]

Better Essays
900 words (2.6 pages)

Cost Of Capital And Capital Essays

- Cost of Capital Components and How to Calculate Them Raising capital is an integral part of any company. However, it is important to understand that there is a cost associated with raising capital that companies need to consider before deciding on their mix of capital sources. What is Capital Capital is simply defined as “Borrowed sums or equity with which the firm 's assets are acquired and its operations are funded.” (Financial Capital, nd). Frankly speaking, a company cannot operate without capital so it is a necessity for any company, large or small....   [tags: Finance, Weighted average cost of capital, Stock]

Better Essays
1017 words (2.9 pages)

The Origin Of Capital Murder And Capital Punishment Essay

- In my essay I will be discussing the origin of capital murder and capital punishment. How this crime has originated in the 14th century and how cruel the punishments were and how they evolved over time in different parts of the world. The Abolishment movement was a movement that I will be discussing about trying to discard the death penalty. I will be comparing and contrasting between the past and the present for moral and immoral punishments. Leading to future and advanced punishments they may make in the future....   [tags: Capital punishment, Murder]

Better Essays
1465 words (4.2 pages)

Child Development in the First Twelve Months Essay example

- By our first birthday, fifty percent of essential qualities needed to survive are developed. About twenty percent of all child development is completed, and this is not only physically but also intellectually, linguistically, emotionally, and socially. The infant is truly a remarkable creature. We, as adolescents, still struggle to learn new material, yet as a baby everything is new. We are open to it, though, at that age. To think, we were all infants at one point. Child development during the first twelve months is the most determining segment of a person’s life....   [tags: Human Growth]

Better Essays
1166 words (3.3 pages)

Capital Punishment Is Necessary Essay

- In recent years, there have been approximately 311 inmates exonerated using DNA ("Innocence Project"). The Innocence Project website states statistically 65-75% of those convicted were wrongly accused. It could be argued that some death row inmates are innocent and received an unjust or even unconstitutional trial. It could also be argued that the appellate courts should halt placing inmates on death row until the DNA exoneration has taken effect. If this were possible, what affect would it have on the Criminal Justice System and capital punishment laws within the states, specifically Texas....   [tags: Pro Capital Punishment]

Better Essays
990 words (2.8 pages)

Jeanette Winterson's Written on the Body and Caryl Churchill's Cloud Nine

- Jeanette Winterson's Written on the Body and Caryl Churchill's Cloud Nine In Jeanette Winterson’s Written on the Body and Caryl Churchill’s Cloud Nine differences between male and female roles in society become distinct. Through these differences, an intricate web of male and female characters seems to be woven, and we can see the clarity between gender roles. With the support of Churchill’s Cloud Nine by Jeffrey Barber, “You see, I am no stranger to love”: Jeanette Winterson and the Extasy of the Word by Celia Shiffer, and “Body Languages: Scientific and Aesthetic Discourses in Jeanette Winterson’s Written on the Body,” the idea of love and gender roles present in Jeanette Winterson’s Wri...   [tags: Winterson Churchill Cloud Nine Essays]

Better Essays
3247 words (9.3 pages)

Capital Punishment Essay

- There are not many issues that come to mind that have had the same effect on societal divides as has the issue regarding the death penalty. Debates swirling around the grounds of whether to abolish it or not has long since divided society on different beliefs in America, resulting in a concept that stirred up countless numbers of arguments and valid points. People’s outlooks on the issue have varied on situations involving the death penalty. The very mention of it sparks a certain passion within the justness and fairness of the American judicial system....   [tags: Capital Punishment, Death Penalty]

Better Essays
657 words (1.9 pages)

Capital Punishment Essay

- Not many issues come to mind that have affected society in such a way that has resulted in protests, out roars and heated debates as ha the issue regarding the death penalty. Debates have hovered around as long as capital punishments beginning; differing on viewpoints whether to abolish it or not and whether or not it is s just form of punishment. The different ends of the spectrum arguing their beliefs has resulted in a divided society with innumerable tallies under the pros and cons to the issues at hand....   [tags: Capital Punishment, Death Penalty]

Better Essays
652 words (1.9 pages)

Comparing poems A Parental Ode to My Son Aged Three Years and Five Months, Catrin, and For Heidi With Blue Hair

- Comparing poems A Parental Ode to My Son Aged Three Years and Five Months, Catrin, and For Heidi With Blue Hair 'A Parental Ode…' is a poem, which has been written about a son through his father's eyes. It is a poem emphasizing the beauty and virtues of his son, talking as if he is a creature of fantasy; though in reality the father's son is a mischievous child, getting into trouble, which is distracting the father from writing his poem. 'Catrin' is written in the same format as 'A Parental Ode…' but in this poem it is the mother viewing her child (which in this case is Catrin)....   [tags: Papers]

Better Essays
2737 words (7.8 pages)