The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. Click here to view Appendix C. Return on common stockholders' equity Debt to assets Return on assets Columbia Sportswear Company 5.9% 35.4% 3.7% Under Armour, Inc. (28.7)% 66.7% (11.1) % (b) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The financial statements of Columbia Sportswear Company are presented in Appendix B.
Click here to view Appendix B.
Financial statements of Under Armour, Inc. are presented in Appendix C.
Click here to view Appendix C.
Return on common stockholders' equity
Debt to assets
Return on assets
Columbia
Sportswear Company
5.9%
35.4%
3.7%
Under Armour, Inc.
(28.7)%
66.7%
(11.1) %
(b)
What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to
boost its return to common shareholders?
Transcribed Image Text:Current Attempt in Progress The financial statements of Columbia Sportswear Company are presented in Appendix B. Click here to view Appendix B. Financial statements of Under Armour, Inc. are presented in Appendix C. Click here to view Appendix C. Return on common stockholders' equity Debt to assets Return on assets Columbia Sportswear Company 5.9% 35.4% 3.7% Under Armour, Inc. (28.7)% 66.7% (11.1) % (b) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders?
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