Financial Statement Analysis

The financial statements for Nike, Inc. are presented in Appendix B at the end of the text. The following additional information (in thousands) is available:

Accounts receivable at May 31, 2010 $3,138

Inventories at May 31, 2010 2,715

Total Assets at May 31, 2010 14,998

Stockholders equity at May 31, 2010 9,843

Instructions:

1. Determine the following measure for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place. (Please show calculations for all problems)

1. Working capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days sales in receivables
6. Inventory turnover
7. Number of days sales in inventory
8. Ratio of liabilities to stockholders equity
1. Ratio of sales to assets
10. Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012.
11. Rate earned on common stockholders equity
12. Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012
13. Percentage relationship of net income to sales.

2. What conclusions can be drawn from these analyses?