Under Armour Prepares To Increase Leverage Ratios
It is well known that leverage is good, or at least that's what we think when it comes to managing the finances of a company or even in real estate. The more we use other people's money to increase our wealth the better. However, given the position that Under Armour., Inc. ( UA , UAA ) is in right now it may be signaling a distressed balance sheet in the near future. The company has come from having a somewhat conservative stance when it comes to debt-to-equity ratio in 2013 at a 49.77%, to being aggressive in 2017 at 98.47% , to being desperate in 2018 where it was announced in their 10K filing that "In February 2018, we amended our credit agreement to increase our permitted leverage ratio during certain quarters in 2018". It is true that in the filing doesn't specify what type of leverage ratio they were talking. Nevertheless, taking a look at the Shareholder's Equity and comparing it with the Current Liabilities and the Total Liabilities we can