1.Calculate Nike, Inc.s Fixed Assets Turnover ratio for the year ending May 31, 2015

2. What does this ratio measure?

NIKE, Inc. Consolidated Statements of Shareholders' Equity + + Common Stock Capital in Accumulated Excess Class A Class B Other of Stated Comprehensive Retained Shares Amount Shares Amount Value Income Earnings Total 180 S 7365 3 $ 4,6415 149 5 5,526 $ 10,319 10 322 322 (2) 2 (34) (10) 2. 65 174 (8) (1.647) (1.657) (727) (727) 65 174 (4) (12) 2,472 2,472 125 5,620 $ 11,081 445 (2.617) (2.628) (821) (821) 78 125 274 $ In millions, except per share data) Balance at May 31, 2012 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.81 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income (loss) Balance at May 31, 2013 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($0.93 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss Balance at May 31, 2014 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($1.08 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss) Balance at May 31, 2015 178 $ 716 $ 11 (37) 3 $ 5,184 S 445 (11) 2 78 177 (8) 177 (189) 85 $ 178 $ 692 $ 14 (29) 3 $ 5,865 S 639 (9) 9) (4) (12) 2.693 2,693 (189) 4,871 $ 10,824 639 (2.525) (2.534) (931) (931) 92 191 (3) 8 (8) 3.273 3.273 1.161 4,685 $ 12,707 2. 92 191 (5) 1.161 1,246 S 178 $ 679 $ 3 $ 6,773 S The accompanying Notes to the Consolidated Francial Statements are an integral part of this statement NIKE, Inc. Consolidated Statements of Income + Year Ended May 31, 2014 2015 2013 In millions, except per share data) Income from continuing operations: Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (ncome). net (Notes 6, 7 and 8) Other (income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME Earings per common share from continuing operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Eamings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Dividends declared per common share 30.601 $ 16,534 14,067 3,213 6,679 9,892 28 (58) 4,205 932 3,273 27.799 $ 15.353 12.446 3.031 5.735 8.766 33 103 3,544 851 2,693 25,313 14,279 11.034 2,745 5.051 7.796 (3) ( (15) 3,256 805 2,451 21 2.472 $ 3,273 $ 2,693 S $ $ 3.80 $ 3.70 $ 3.05 S 2.97 $ 2.74 2.68 $ $ S $ 0.93 $ 0.02 0.02 0.81 1.08 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. + NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2015 2014 3,273 $ 2.693 $ 2013 2,472 $ (in Millions Net income Other comprehensive income (loss), net of tax: Change in net foreign currency translation adjustmenti Change in net gains (losses) on cash flow hedges Change in net gains (losses) on other Change in release of cumulative translation loss related to Umbro Total other comprehensive income (oss), net of tax TOTAL COMPREHENSIVE INCOME (20) 1,188 (7) (32) (161) 4 38 12 (8) 83 125 2,597 1,161 4,434 S (189) 2,504 $ S (1Nerof tax benefexpense of $0 milon, So million and S(13) Milon, respectively, (2) Netof tax benefexpense of $(31) million $18 million and $122) milion, respectively. 3) Net of tax benefit fperise of milion Somion and million, respectvely, 14 Net of tax benefit fexpense of milion, So million and S47 milion, respectively The accompanying Notes to the Consolidated Francial Statements are an integral part of this statement. NIKE, Inc. Consolidated Balance Sheets + May 31, 2015 2014 $ 3,852 $ 2.072 3.358 4,337 389 1,968 15,976 3,011 281 131 2.201 21,600 S 2,220 2.922 3.434 3,947 355 818 13,696 2.834 282 131 1,651 18,594 S $ S An millons) ASSETS Current assets: Cash and equivalents (Note 6) Short-term investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets Notes 6 and 17) Total current assets Property, plant and equipment, net (Note 3) Identifiable intangible assets, net (Note 4) Goodwil (Note 4) Deferred income taxes and other assets (Notes 6, 9 and 17) TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued abilities (Notes 5, 6 and 17) Income taxes payable (Note 9 Total current liabilities Long-term debt (Note 8) Deferred income taxes and other liabilities (Notes 6. 9. 13 and 17) Commitments and contingencies (Note 16) Redeemable preferred stock (Note 10) Shareholders' equity: Common stock at stated value (Note 11); Class A convertible - 178 and 178 shares outstanding Class B - 679 and 692 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained eamings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 107 $ 74 2,131 3,951 71 6.334 1,079 1,480 7 167 1.930 2.491 432 5.027 1,199 1.544 3 6.773 1.246 4,685 12,707 21,600 S 3 5.865 85 4.871 10.824 18,594 S The accompanying Notes to the Consolidated Fnancial Statements are an integral part of this statement NIKE, Inc. Consolidated Statements of Cash Flows + + 2015 Year Ended May 31, 2014 2013 3,273 $ 2,693 $ 2.472 606 (113) 191 43 424 518 (11) 177 68 56 438 20 174 64 66 (124) (298) (505) (216) (621) (144) 1,237 4.680 (210) 525 3.013 142 (219) (28) 27 3.032 (5.386 3.932 1.126 (4,133) 1.663 1.330 (4.936) 3.655 2.216 (150) (963) 3 (880) 3 An millions) Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Deferred income taxes Stock-based compensation (Note 11) Amortization and other Net foreign currency adjustments Net gain on divestitures Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) in inventories (Increase) in prepaid expenses and other current assets Increase in accounts payable, accrued liabilities and income taxes payable Cash provided by operations Cash used by investing activities: Purchases of short-term investments Maturities of short-term investments Sales of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment Proceeds from divestitures Increase) in other assets, net of other labilities Cash used by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt payments, including current portion (Decrease) increase in notes payable Payments on capital lease obligations Proceeds from exercise of stock options and other stock issuances Excess tax benefits from share-based payment arrangements Repurchase of common stock Dividends - common and preferred Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid The accompanying Notes to the Consolidated nancial Statements are an integral part of this statement (598) ( 14 786 (2) (940) (175) (2) (1.207) 986 (49) 10 (7) (63) (19) 514 218 (2,534) (899) (2.790) (83) 1.632 2.220 3,852 $ (60) 75 (17) 383 132 (2.628) (799) (2.914) 19 (1.117) 3.337 2,220 $ 313 72 (1.674) (703) (1.045 36 1,083 2.254 3,337 $ $ 53 $ 1 1,262 206 240 53 $ 856 167 209 20 702 137 188 Year Ended May 31, 2014 + 2015 2013 $ 13.740 $ 5,709 1.417 3,067 755 3,898 115 28,701 1,982 (82) 30,601 $ 12.299 $ 4.979 1.387 2,602 771 3.949 125 26,112 1.684 3 27,799 S 11.158 4,193 1.229 2,478 876 3,832 115 23,881 1,449 (17) 25,313 S $ 3.077 $ 855 279 816 131 952 filn millons) REVENUES North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL NIKE CONSOLIDATED REVENUES EARNINGS BEFORE INTEREST AND TAXES North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate Total NIKE Consolidated Earnings Before Interest and Taxes Interest expense (income), net TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES ADDITIONS TO LONG-LIVED ASSETS North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL ADDITIONS TO LONG-LIVED ASSETS DEPRECIATION North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL DEPRECIATION 3,645 $ 1.277 247 993 100 818 (2.263) 4,817 517 (1,101) 4.233 28 4,205 $ (1.996) 4,117 496 (1.036) 3.577 33 3,544 $ 2.639 643 234 813 139 985 (1.716) 3.737 425 (909) 3.253 (3) 3,256 $ S 75 208 $ 216 20 69 15 37 225 790 69 144 1,003 $ 240 $ 120 19 63 9 55 225 731 30 161 922 S 270 S $ 121 $ 75 12 46 22 27 210 513 18 75 606 $ 22 109 $ 71 11 38 19 25 175 448 16 54 518 S *&88.8a8888 $ 418 As of May 31, 2015 2014 + s 1.737 $ 344 242 84 134 461 88 3.090 258 10 3,358 $ 1.505 341 280 68 162 819 71 3.246 171 17 3,434 S S (in Millions) ACCOUNTS RECEIVABLE, NET North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL ACCOUNTS RECEIVABLE, NET INVENTORIES North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL INVENTORIES PROPERTY, PLANT AND EQUIPMENT, NET North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Global Brand Divisions Total NIKE Brand Converse Corporate TOTAL PROPERTY, PLANT AND EQUIPMENT, NET 2.207 $ 699 169 249 94 528 32 3.978 237 122 4,337 $ 1.758 711 271 221 94 633 18 3,706 261 (20 3,947 S $ 632 $ 451 47 254 205 103 484 2,176 122 713 3,011 S 545 384 51 232 258 115 537 2.122 70 642 2.834 $ Revenues by Major Product Lines Revenues to external customers for NIKE Brand products are attributable to sales of footwear, apparel and equipment. Other revenues to extemal customers consist primarily of sales by Converse $ An millions) Footwear Apparel Equipment Other TOTAL NIKE CONSOLIDATED REVENUES Year Ended May 31, 2015 2014 18,318 $ 16.208 $ 8.636 8.109 1.632 1.670 2015 1,812 30,601 S 27,799 $ 2013 14,635 7.491 1,640 1.547 25,313 $