Factors causing those shifts on Under Armor Financial Trends

            Under Armor is said to increase its level of operations, it can be said that the company is moving into new markets and expanding its operations, this is why the company is experiencing the growth. It also refers to the potential reading and illustrates the reasoning that not only limits the potential statement but also illustrates a shift in all the operational activities. This is a boost for the organization and as it can be seen that the potential is very high for the amount under discussion.

Capital Composition on Under Armor Financial Trends

        Capital composition of all the companies is the division of providers of resources. A business has two parts of its overall system, one of it is the resources that are popularly known as Assets and the second is the claim on these resources. These are popularly called liabilities and equity, together, on combining these claims, it can be seen that the formation is termed as capital composition. This capital formation is compiled and calculated in form of percentages.

Change in Capital Composition on Under Armor Financial Trends

        The capital structure of the organization is given below; it is given in terms of each yearand it can be analyzed in terms of percentage for each year.

        In the financial year, 2015 there is a further increase in debt than 2014, indicating the restructuring of resources and the current proportion of liabilities is now 41.86%. Which is a great increase in the proportion, on the other hand the equity has decreased as per 58.14%.

        It can be seen that liabilities or the debt of the company is constantly increasing and the proportion of equity is on the decline. The proportion of liabilities is 44.26%, which is an increase from previous year. The equity has decreased in proportion and the percentage here is 55.74%. It can be seen that the proportion is changing and the gap between liabilities and equity is increasing. This is the overall perspective of capital structure.

        The trend continues and it looks like the company is slowly restructuring the proportion, as the company tends to increase to the ratio of debt to 49.61% and the increase in this is in terms of liabilities. It can further have said that the equity is now 50.39%. making the liabilities and equity would lead to a lower investment and lower cost of investment.

 Long Term Debt on Under Armor Financial Trends

        Long term debt is every debt that lasts for more than the accounting period, in the case of Under Armor, the accounting period is the financial year. It can be said that the Long term debt policy is discussed as under.

        It can be seen that the long term debt has been increasing over the last 5 years and as it is increasing per year. It can also be illustrated that in the year 2017 the debt decreased significantly. So the company had the highest debt in 2016 and it is now focused on decreasing long term debt.

        Other long-term debt is constantly on the rise. It can also be seen that the increment is termed as a great increase, so the company seems to cover most of its financing needs from this head.

        In an overall context the liabilities increased till 2016. And as it was seen that the long term liabilities decreased and the other liabilities increased, so the impact in an overall context is seen to remain constant between 2016 and 2017. It is also analyzed that there is great potential in long term liabilities for the company.

Reference on Under Armor Financial Trends

Under Armor. 2017. Financial Report 2017. UnderArmor.