1. Business Strategy and Environment Using information from Nike's 2021 10-K, please answer the following questions: a. What is Nike's fiscal year end and on which day did Nike file its 2021 10-K? b. What are Nike's principal business activities? c. Who are Nike's major competitors? d. How many employees does Nike currently have?

e. Who is Nike's auditor and how long has this auditor been with Nike? f. Please read footnote 1 of 10-K carefully before you start any further analysis. This will help you tremendously when answering the following questions of this case study.

2. Financial Ratio Analysis a. Using Nike's financial statements provided in their 10-K filing, determine which items on Nike's Balance Sheet and Income Statement are OPERATING items (operating assets, operating liabilities, and operating income. Then calculate NOPAT (net operating profit after tax), OA (operating assets), OL (operating liabilities), NOA (net operating assets), RNOA (return on net operating assets), and GPM (Gross Profit Margin), for fiscal years 2021 and 2020 using the definition of these ratios from the textbook. Compare these numbers and ratios across the two years and indicate any trends (for example, you can use the Sparkline function to check the trend similar to the Group Case Analysis 3). For tax rate, please simply use statutory tax rate (22%) when calculating NOPAT for both 2021 and 2020 years. (It is highly recommended that you this be done in an excel spread sheet, you can then simply copy and paste your completed work to this file from the excel spreadsheet, that will make it easier to change your numbers and make adjustments. Your completed spreadsheet can also be easily used for the final project, you may consider using a modified version of the in-class spreadsheet for P4-45, I uploaded the spreadsheet together with this assignment, see attachment 1).

b. Show the decomposition of Nike's RNOA into NOPM (net operating profit margin) and NOAT (net operating asset turnover) for years 2021 and 2020. What do these ratios suggest about the change of performance of Nike across the past two years? (Again, you may use the Sparkline function to observe the trend)

c. Compare Nike's RNOA to Nike's ROE using unadjusted balance sheet numbers to calculate ROE. Comment on the difference and explain why there is a difference between these two numbers. To get ROE, you may simply get it directly from the ratio analysis spreadsheet shared with you below (I have already changed the company Ticker to "NKE" and most recent fiscal year to 2021). This google spreadsheet will automatically populate the numbers from the ticker and fiscal year you input.