Question
Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions): Accounts receivable at May
Financial Statement Analysis
The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions):
Accounts receivable at May 31, 2016 | $3,241 |
Inventories at May 31, 2016 | 4,838 |
Total assets at May 31, 2016 | 21,379 |
Stockholders' equity at May 31, 2016 | 12,258 |
1. Determine the following measures for the fiscal years ended May 31, 2018, and May 31, 2017. Assume 365 days a year. Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations.
May 31, 2018 | May 31, 2017 | |||||
a. | Working capital (in millions) | $ | fill in the blank 1 | $ | fill in the blank 2 | |
b. | Current ratio | fill in the blank 3 | fill in the blank 4 | |||
c. | Quick ratio | fill in the blank 5 | fill in the blank 6 | |||
d. | Accounts receivable turnover | fill in the blank 7 | fill in the blank 8 | |||
e. | Number of days' sales in receivables | fill in the blank 9 days | fill in the blank 10 days | |||
f. | Inventory turnover | fill in the blank 11 | fill in the blank 12 | |||
g. | Number of days' sales in inventory | fill in the blank 13 days | fill in the blank 14 days | |||
h. | Ratio of liabilities to stockholders' equity | fill in the blank 15 | fill in the blank 16 | |||
i. | Asset turnover | fill in the blank 17 | fill in the blank 18 | |||
j. | Return on total assets | fill in the blank 19% | fill in the blank 20% | |||
k. | Return on stockholders' equity | fill in the blank 21% | fill in the blank 22% | |||
l. | Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017. | fill in the blank 23 | fill in the blank 24 |
2. The working capital
decreasedincreasedremained constant
between 2017 and 2018. The current and quick ratios both
decreasedincreasedremained constant
during 2018. The accounts receivable turnover
decreasedincreasedremained constant
and number of days sales in receivables
decreasedincreasedremained constant
slightly. The margin of protection to creditors
decreasedincreasedremained constant
. The return on total assets
decreasedincreasedremained constant
during 2018. The return on stockholders equity
decreasedincreasedremained constant
.
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