sustainable growth rate
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Following are selected financial data for the
company for the period 2009 to 2013.
Profit margin (%)
Retention ratio (%)
Asset turnover (X)
Financial leverage (X)
Growth rate in sales (%)
Year
2009
2010
2011
2012
2013
2009
5.6
100.0
1.5
1.6
18.4
Sustainable Growth Rate
%
%
%
%
%
2010
6.5
100.0
1.5
1.6
24.5
2011
6.7
100.0
1.5
1.8
38.7
2012
7.1
100.0
1.5
1.7
24.9
a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013.
Note: Round your answers to 1 decimal place.
2013
7.1
100.0
1.4
1.8
27.4
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