a. Executive summary of the company and its industry.
b. Detailed evaluation of:
(1) Short-term...

Question

a. Executive summary of the company and its industry.
b. Detailed evaluation of:
(1) Short-term liquidity (current debt-paying ability).
(2) Cash forecasting and pro forma analysis.
(3) Capital structure and solvency.
(4) Return on invested capital.
(5) Asset turnover (utilization).
(6) Profitability and equity analysis. Note: You are expected to use a variety of financial analysis tools in answering (b). Your analysis should yield inferences for each of these six areas.
c. Comment on the usefulness of the financial statements of this company for your analysis.
d. How did accounting principles used in the financial statements affect your analytical measures?
e. Prepare a forecast of the income statement, balance sheet, and statement of cash flows for a (1)-year horizon based off 2016 financials.
f. Estimate the value of your company’s common stock per share using the valuation analysis and procedures described in the Comprehensive Case

David · Accepted Answer

Executive Summary:
Under Armour is an American Company which is manufacturing in the footwear, sports and casuals apparels. Its CEO is Kevin Plank from 1996, headquarter situated in the Baltimore, Mary Land, United states. Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia  - - - Pacific, and Latin America. It is in the performance apparel industry, which is always in demand and stable growth in the industry as well.
Company Financials:
INCOME STATEMENT 
	Period Ending:
	Trend
	12/31/2016
	12/31/2015
	12/31/2014
	12/31/2013
	Total Revenue
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$4,825,335
	$3,963,313
	$3,084,370
	$2,332,051
	Cost of Revenue
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$2,584,724
	$2,057,766
	$1,572,164
	$1,195,381
	Gross Profit
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$2,240,611
	$1,905,547
	$1,512,206
	$1,136,670
	Operating Expenses
	Research and Development
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Sales, General and Admin.
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$1,823,140
	$1,497,000
	$1,158,251
	$871,572
	Non-Recurring Items
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Other Operating Items
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Operating Income
				
	
	
		
	
	
		
	
	
	
	
		
	
	
	
	
	
	$417,471
	$408,547
	$353,955
	$265,098
	Add'l income/expense items
				
	
	
		
	
	
		
	
	
		
	
	
	($2,755)
	($7,234)
	($6,410)
	($1,172)
	Earnings Before Interest and Tax
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$414,716
	$401,313
	$347,545
	$263,926
	Interest Expense
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$26,434
	$14,628
	$5,335
	$2,933
	Earnings Before Tax
				
	
	
		
	
	
		
	
	
	
	
		
	
	
	
	
	
	$388,282
	$386,685
	$342,210
	$260,993
	Income Tax
				
	
	
	
	
		
	
	
		
	
	
	
	
		
	
	
	
	
	
	$131,303
	$154,112
	$134,168
	$98,663
	Minority Interest
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Equity Earnings/Loss Unconsolidated Subsidiary
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Net Income-Cont. Operations
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$256,979
	$232,573
	$208,042
	$162,330
	Net Income
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$256,979
	$232,573
	$208,042
	$162,330
	Net Income Applicable to Common Shareholders
				
	
	
	
	
		
	
	
		
	
	
	
	
		
	
	
	
	
	
	$197,979
	$232,573
	$208,042
	$162,330
BALANCE SHEET
Annual Income Statement (values in 000's)Get Quarterly Data
	Period Ending:
	Trend
	12/31/2016
	12/31/2015
	12/31/2014
	12/31/2013
	Current Assets
	Cash and Cash Equivalents
				
	
	
	
	
		
	
	
	
	
		
	
	
		
	
	
	
	
	
	$250,470
	$129,852
	$593,175
	$347,489
	Short-Term Investments
				
	
	
	
		
	
	
	
		
	
	
	
		
	
	
	
	$0
	$0
	$0
	$0
	Net Receivables
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$622,685
	$433,638
	$332,333
	$248,329
	Inventory
				
	
	
		
	
	
	
	
		
	
	
	
	
		
	
	
	
	
	
	$917,491
	$783,031
	$536,714
	$469,

a. Executive summary of the company and its industry. b. Detailed evaluation of: (1) Short-term liquidity (current debt-paying ability). (2) Cash forecasting and pro forma analysis. (3) Capital...

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