Columbia sportswear and under armour

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Comparing Two Companies in the Same Industry: Columbia Sportswear and Under Armour

Refer to the financial information for Columbia Sportswear and Under Armour reproduced at the back of the book for the information needed to answer the following questions.

Required

1. Compute each company's working capital at the end of the two most recent years. Also, for each company, compute the change in working capital during the most recent year.

2. Compute each company's current ratio at the end of the two most recent years. Compute the percentage change in the ratio during the most recent year.

3. How do the two companies differ in terms of the accounts that made up their current assets at the end of the most recent year? What is the largest current asset each company reports on the balance sheet at the end of the most recent year?

4. On the basis of your answers to (2) and (3), comment on each company's liquidity.

Reference no: EM13953336

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