Use the profitability ratios you have just calculated to discuss Nike's profitability. Be sure to include comparisons to Adidas.

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18.23% 34 Calculate Nike's return on assets ratio for FYE 5/3 1/ 18, 5/3 1/ 18: . 5/31/17 and FYE 5/31/16. (100*1,933/22,536) = 8.58% 5/ 3 1/ 17: (100*4,240/23,259)= 5/31/16: (100*3,760/21,396)= 17.57% 35 Calculate Adidas's return on assets ratio for 2017, 2016 and 2017 . 2015. 1100/ 14522 * 100 = 7.57% 2016 1020/ 15176 * 100 = 6.721% 2015 640/ 13343 * 100 = 4.7965% 36 Has Nike's return on assets ratio improved since F YE 5/3 1/ 16? Nike's return on assets ratio has . Are they doing better than Adidas? Explain. decreased since 5/3 1/ 16 from 17% to 8%. However, as per MD&A, this decrease is because of a one-year hike in taxes. However, they are still doing much better than Adidas - which has been increasing (from 4.7% to 7.5%) but is still lower than Nike's. 37 3 Calculate Nike's return on common stockholders' equity ratio 5/ 3 l/ 18: for FYE 5/31/18, 5/31/17 and FYE 5/31/16. (100*1,933/9,812)= 19.70% 5/31/17: (100*4,240/12,407)= 34.17% 5/31/16: (100*3,760/12,258)= 30.67% 8 Calculate Adidas's return on common stockholders' equity 2017: ratio for 2017, 2016 and 2015. 1100 / 6450 * 100 = 17.054% 2016: 1020 / 6472 * 100 = 15.814% 2015: 640/ 5666 * 100 = 11.295% 39 Has Nike's return on common stockholders' equity ratio Nike's return on common improved since F YE 5/31/16? Are they doing better than stockholders' equity has decreased Adidas? Explain. since FYE 16 (from 30% to 19%). However, in MD&A Nike notes that this drop is due to a tax hike, and will reverse in 2019. Furthermore, Nike's lowest number (19%) is still better than Adidas's highest (17%). Therefore, Nike is still doing better than Adidas