Debt to Equity Ratio: Debt to equity ratio is calculated to determine the leverage position of the company. It compares the total liabilities of the company with it total shareholders’ equity. The debt to equity ratio is calculated by dividing the Total Liabilities by Total Stockholder’s Equity. The formula to calculate Debt to equity ratio is as follows: Debt to equity ratio = Total liabilities Total Stockholder’s Equity To calculate: The debt to equity ratio for the year 2016 and 2015 for Under Armour Inc. and Columbia Sportswear.

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Computing Ratios The following information was obtained from recent annual reports on Form 10-K for American Eagle Outfitters, Inc. $ thousands Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 Deferred tax liabilities $71,468 $67,332 $36,289 Total liabilities 578,091 560,870 557,162 Total stockholders' equity 1,204,569 1,051,376 1,139,746 Compute the debt-to-equity ratio (a) including deferred tax liabilities as part of total liabilities, and (b) excluding deferred tax liabilities as part of total liabilities.Note: Round ratios to two decimal places (for example, enter .32 for .3156). Debt-to-equity ratio Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 a. Include deferred tax liabilities b. Exclude deferred tax liabilities

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Chapter 9, Problem 105.4C

To determine

Concept introduction:

Debt to Equity Ratio:

Debt to equity ratio is calculated to determine the leverage position of the company. It compares the total liabilities of the company with it total shareholders’ equity. The debt to equity ratio is calculated by dividing the Total Liabilities by Total Stockholder’s Equity. The formula to calculate Debt to equity ratio is as follows:

Debt to equity ratio = Total liabilitiesTotal Stockholder’s Equity

To calculate:

The debt to equity ratio for the year 2016 and 2015 for Under Armour Inc. and Columbia Sportswear.

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Computing Ratios The following information was obtained from recent annual reports on Form 10-K for American Eagle Outfitters, Inc. $ thousands Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 Deferred tax liabilities $71,468 $67,332 $36,289 Total liabilities 578,091 560,870 557,162 Total stockholders' equity 1,204,569 1,051,376 1,139,746 Compute the debt-to-equity ratio (a) including deferred tax liabilities as part of total liabilities, and (b) excluding deferred tax liabilities as part of total liabilities.Note: Round ratios to two decimal places (for example, enter .32 for .3156). Debt-to-equity ratio Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 a. Include deferred tax liabilities b. Exclude deferred tax liabilities

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