Quiz2

Question:


Search for a company financial statements (income statement, balance sheet and statement of cash flows) and then find:
1) The name of the company
2) Industry
3) Debt Ratio
4) Current Ratio

Here are the links for financial statements* that are going to be used for this exercise:
http://finance.yahoo.com/q/is?s=UA&annual
http://finance.yahoo.com/q/bs?s=UA&annual
http://finance.yahoo.com/q/cf?s=UA&annual
*using annual data for the year of 2007

Answer:


1)The company's name is Under Armour, Inc.

2)Under armour industry is Textile - Apparel Clothing

3)

(1)
\begin{align} Debt Ratio=\frac{ \textrm{Total Debt}}{ \textrm{Total Assets}}=\frac{110,128}{390,613}=0.281 \end{align}

You can find the total debt (or total liabilities) and the total assets on the Balance sheet Statement.

4)

(2)
\begin{align} Current Ratio=\frac{ \textrm{Current Assets}}{ \textrm{Current Liabilities}}=\frac{322,245}{95,699}=3.37 \end{align}

You usually can find the current assets and current liabilities on the Balance Sheet as well. If not, the current assets are the total of the cash, short term investments, net receivables, inventory (for some companys) and some other current assets. The current liabilities are the ones that will require cash in the near future, like accounts payable and short term debt.

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