From the financial statements of Under Armour i dentify any sources of risk in t
ID: 1220843 • Letter: F
Question
From the financial statements of Under Armour identify any sources of risk in there operations. Do the financial reports indicate any uncertain activities or changes to the economic environment that ultimately appear to have affected the company's financial outcomes? Analyze the Under Armours profitability and identify the economy or industry influences on its costs, operations, and profitability. Describe the competitive environment, the distribution of market power, and the strategic behavior of the firm and its competitors.
Explanation / Answer
Under armour stocks are down with the exit of chief merchandise officer Henry stafford and that is why the company needs to protect its core business.The problem faced was big debts and rise of upfront cost ,with less cash and high capitalisation the firm faces a high risk compared to other competitors in the market.There international business their fluctuations will increase when pegged to foreign currency so the investors might face such shocks. The company has also announced major acquisitions with mapmy fitness and is planning to tackle more challenges by entering new ventures.Since the company is majorly into apparels there can be some risk involved and has more inventory stock than other competitors and this will make the stock involuntary stacked over the years .Hence , the investors have to keep all this in mind while investing in the company.
Source : As per the companies financial statement on website .
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