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 Sustainable Growth Rate : 2009 % % % % 5.2 100.0 1.6 1.7 18.3 2010 6.1 100.0 1.6 1.7 24.4 2011 6.3 2012 6.7 100.0 100.0 1.6 1.9 38.6 1.6 1.8 24.8 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. Note: Round your answers to 1 decimal place. 2013 6.7 100.0 1.5 1.9 27.3
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 Sustainable Growth Rate : 2009 % % % % 5.2 100.0 1.6 1.7 18.3 2010 6.1 100.0 1.6 1.7 24.4 2011 6.3 2012 6.7 100.0 100.0 1.6 1.9 38.6 1.6 1.8 24.8 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. Note: Round your answers to 1 decimal place. 2013 6.7 100.0 1.5 1.9 27.3
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:### Financial Performance Analysis of Under Armour, Incorporated (2009-2013)
Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Below is a summary of selected financial data for the company from 2009 to 2013:
```
| Year | 2009 | 2010 | 2011 | 2012 | 2013 |
|------|------|------|------|------|------|
| Profit Margin (%) | 5.2 | 6.1 | 6.3 | 6.7 | 6.7 |
| Retention Ratio (%) | 100.0| 100.0| 100.0| 100.0| 100.0|
| Asset Turnover (x) | 1.6 | 1.6 | 1.6 | 1.6 | 1.5 |
| Financial Leverage (x) | 1.7 | 1.7 | 1.9 | 1.8 | 1.9 |
| Growth Rate in Sales (%) | 18.3 | 24.4 | 38.6 | 24.8 | 27.3 |
```
### Exercise:
Calculate Under Armour’s annual sustainable growth rate for the years 2009 through 2013.
**Note:** Round your answers to 1 decimal place.
#### Sustainable Growth Rate Calculation Table
```
| Year | Sustainable Growth Rate |
|------|-------------------------|
| 2009 | |
| 2010 | |
| 2011 | |
| 2012 | |
| 2013 | |
```
#### Explanation of Terms:
1. **Profit Margin (%):** The percentage of revenue that remains as profit after all expenses have been deducted from sales.
2. **Retention Ratio (%):** The percentage of net income that is retained in the company rather than paid out as dividends.
3. **Asset Turnover (x):** A measure of the efficiency of a company's use of its assets in generating sales revenue.
4. **Financial Leverage (x):** The degree to which a company uses borrowed money (debt) to finance its operations.
5. **Growth Rate in Sales (%):** The annual increase in sales, expressed as a percentage.
### Calculation Guide:
The sustainable
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