Are Operating Liabilities Large for Nike and Under Armour?

Nike and Under Armour Operating Liabilities

Accrued liabilities arise from the goods and services received by the company but not yet paid for or recorded in the books. These types of liabilities arise from ordinary business operations and help provide interest-free financing.

Both Nike and Under Armour have operating liabilities. Common-size balance sheets can be used to determine the size of operating liabilities for the companies. Common-size balance sheets analyze the financial statements by displaying each item on the balance sheet as a percentage of total assets. This type of analysis can be useful when comparing financial statements of different companies.

Operating liabilities are generally large for companies because they arise from everyday operations. The amount of operating liabilities can vary depending on the company's size and industry. However, both Nike and Under Armour have significant operating liabilities. For example, on Nike's common-size balance sheet, trade and other payables account for 7.13% of total assets, while on Under Armour's common-size balance sheet, accounts payable account for 14.6% of total assets.