Chapter 9, Problem 105.5C

To determine

Concept introduction:

Debt to Equity Ratio:

Debt to equity ratio is calculated to determine the leverage position of the company. It compares the total liabilities of the company with it total shareholders’ equity. The debt to equity ratio is calculated by dividing the Total Liabilities by Total Stockholder’s Equity. The formula to calculate Debt to equity ratio is as follows:

$\text{Debt to equity ratio = }\frac{\text{Total liabilities}}{\text{Total Stockholder’s Equity}}$

To calculate:

The Long term debt to Total Assets ratio for the year 2016 and 2015 for Under Armour Inc. and Columbia Sportswear.