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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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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

 

Answered Same DayDec 16, 2019

Solution

David answered on Dec 24 2019
89 Votes
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
anded 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-Recu
ing 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
    Cu
ent 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
    $469,006
    Other Cu
ent...
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