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** SEE FILE ATTACHED 

Create your complete analysis report as a Word document by copying the relevant sections
of the Excel spreadsheet into the document. This report will include your ratio computations,
a financial trend comparison and an industry-performance comparative financial analysis.
Include a synopsis of the major ratios computed in Part Two A as well as the following
sections:
Financial Trend Comparison
For each of the five ratio categories: Liquidity, Asset Utilization, Profitability, Debt
Utilization, and Market Values, write a paragraph regarding the trend and implications about
the future financial health of the company. You do not have to address every single category,
just enough to determine the overall trend.
Comparative Financial Analysis of the company compared to the industry performance
Write a paragraph regarding your company's comparative performance to the industry average
(or its closest competition for the most recent year. Many times, it is not possible to find the
industry averages for several of the categories. Supplement this analysis by evaluating the results of
the company's closest competitor. You do not have to address every single category, just enough to
determine the overall situation.

4
Graphical Analysis
Describe the financial trend and comparative financial analysis graphically. Be creative here, a
picture is worth a thousand words! Under each chart write one sentence summarizing the
financial trend and comparative analysis from above

START HERE

Congatulations on achieving the first step towards mastering Financial Management by reinforcing your foundational knowledge in Algebra, Numerology, and Financial Accounting. You are now well equipped to master a company's important Financial Management functions: evaluating its financial performance, comparing its performance over time (trend analysis) and in comparison (comparative analysis) to other firms in the industry.
Why is this important? Many times you are enticed to invest in a company's stock because there is a lot of buzz on social media or your barber/hairdresser told you this is a sure deal ased on an inside tip! You will learn through your Business program that it is critical to possess this deep understanding of Financial Management, supplement it with data on the economy, industry and other considerations that allow you to rationally improve future decision-making.
We want to make sure you understand the synergies with the impressive work you have already done on the review of Accounting concepts. This project is designed to show you how to build on this work to make important Financial Management decisions. You can also supplement this analysis with data visulaization techniques that Excel allows you to do.
Once you understand these vital steps you will be well on the road to controlling the important inputs to keep creating and adding value for your chosen company to improve its long term performance. You can also use this type of analysis to make important investment decisions, in terms of investing in stocks and bonds for the long haul based on fundamental analysis. Good luck!
Please start this exercise by including the Financial Statement information that you have already gathered from the Accounting Review section into the next tab labelled "Input". Then check the results in the tabs following beginning with Liquidity etc.

Input

NIKE, INC. | NKE
Ratio Analysis
Input Worksheet
9/12/23
Gray cells will be calculated for you. You do not need to enter anything into them. When inputting the Q1 to Q4 data ensure that it is chronologically accurate with the end of Q4 being the same
Enter amounts into the yellow cells only.
Be sure to enter industry averages for the ratio calculations on the other pages of the spreadsheet by replacing every cell which contains red font. Use your algebraic skills you have already mastered to calculate the deviation or the variance of your company's ratio with the industry/peer company's avarage
Line Item Beginning of Year
Inventory $7,700.0
Total assets $38,577
Owners' equity $14,809
Number of common shares 1,611
Line Item Q1 Q2 Q3 Q4 Annual
Current assets 26,962 28,213 28,877 27,447 $27,447
Fixed assets 8,340 8,287 8,223 8,224 $8,224
Other assets 3,275 3,821 3,988 3,976 $3,976
Total assets 38,577 40,321 41,088 39,647 $39,647
Average total assets 38,577 39,449 39,833 39,112 $39,112
Cash and cash equivalents 8,704 8,574 7,226 6,490 $6,490
Inventory 7,700 8,420 9,662 9,326 $9,326
Average inventory 7,700 8,060 8,681 8,513 $8,513
Current liabilities 8,818 10,730 10,919 10,199 $10,199
Total liabilities 23,768 25,040 25,266 24,375 $24,375
Owners' equity 14,809 15,281 15,822 15,272 $15,272
Number of common shares 1,611 1,595 1,586 1,572 1,572
Average number of common shares 1,611 1,603 1,598 1,592 1,592
Average owners' equity 14,809 15,045 15,316 15,041 $15,041
Market price per share 129.72 112.24 98.11 103.00 $103.00
Operating Cash flow 7,433 8,199 8,767 9,191 $33,590
Cash flow per share 4.61 5.12 5.49 5.77 $21.11
Dividends paid 484 481 480 480 $1,925
Total sales 10,871.0 12,234 12,687 13,315 $49,107
Cost of sales 5,804 6,731 7,072 7,604 $27,211
Other Operating expenses 3,438 4,035 3,920 4,124 $15,517
Operating income 1,629.0 1,468 1,695 1,587 $6,379
Earnings before interest and taxes 1,629 1,468 1,695 1,587 $6,379
Interest expense 53 40 13 16 $122
Net income 1,396 1,439 1,468 1,331 $5,634

Liquidity

NIKE, INC.
Ratio Analysis
Liquidity Ratios Q1 Q2 Q2 Q3 Q4 Annual
Definition:
Current Ratio = Current Assets 3.06 = $26,962 2.63 = $28,213 2.64 = $28,877 2.69 = $27,447 2.69 = $27,447
Current Liabilities $8,818 $10,730 $10,919 $10,199 $10,199
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.27
Variance 3.06 2.63 2.64 2.69 1.42
Quarterly Growth/Decline (0.43) 0.02 0.05
Quick Ratio = Current Assets – Inventory 2.18 = $26,962 $7,700 1.84 = $28,213 $8,420 1.76 = $28,877 $9,662 1.78 = $27,447 $9,326 1.78 = $27,447 $9,326
Current Liabilities $8,818 $10,730 $10,919 $10,199 $10,199
Industry Average 0.62
Variance Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 2.18 1.84 1.76 1.78 1.16
Quarterly Growth/Decline (0.34) (0.08) 0.02
Net Working Capital Ratio = Current Assets – Current Liabilities 0.47 = $26,962 $8,818 0.43 = $28,213 $10,730 0.44 = $28,877 $10,919 0.44 = $27,447 $10,199 0.44 = $27,447 $10,199
Total Assets $38,577 $40,321 $41,088 $39,647 $39,647
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.27
Variance 0.47 0.43 0.44 0.44 0.17
Quarterly Growth/Decline (0.04) 0.00 (0.00)
Current Liabilities to Inventory Ratio = Current Liabilities 1.15 = $8,818 1.27 = $10,730 1.13 = $10,919 1.09 = $10,199 1.09 = $10,199
Inventory $7,700 $8,420 $9,662 $9,326 $9,326
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.55
Variance 1.15 1.27 1.13 1.09 (0.46)
Quarterly Growth/Decline 0.13 (0.14) (0.04)
Cash Ratio = Cash and Cash Equivalents 0.99 = $8,704 0.80 = $8,574 0.66 = $7,226 0.64 = $6,490 0.64 = $6,490
Current Liabilities $8,818 $10,730 $10,919 $10,199 $10,199
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.10
Variance 0.99 0.80 0.66 0.64 0.54
Quarterly Growth/Decline (0.19) (0.14) (0.03)
Operating Ratio = Operating Expenses 5.67 = $9,242 7.33 = $10,766 6.48 = $10,992 7.39 = $11,728 6.70 = $42,728
Operating Income $1,629 $1,468 $1,695 $1,587 $6,379
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 32.64
Variance 5.67 7.33 6.48 7.39 (25.94)
Quarterly Growth/Decline 1.66 (0.85) 0.91

Assets

NIKE, INC.
Ratio Analysis
Asset Ratios Q1 Q2 Q3 Q4 Annual
Definition:
Inventory Turnover Ratio = Total Cost of Sales 0.75 = $5,804 0.84 = $6,731 0.81 = $7,072 0.89 = $7,604 3.20 = $27,211
Average Inventory $7,700 $8,060 $8,681 $8,513 $8,513
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.99
Variance 0.75 0.84 0.81 0.89 1.21
Quarter Growth/Decline 0.08 (0.02) 0.08
Fixed Assets Turnover Ratio = Total Sales 1.30 = $10,871 1.48 = $12,234 1.54 = $12,687 1.62 = $13,315 5.97 = $49,107
Fixed Assets $8,340 $8,287 $8,223 $8,224 $8,224
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 4.53
Variance 1.30 1.48 1.54 1.62 1.44
Quarter Growth/Decline 0.17 0.07 0.08
Total Assets Ratio = Total Sales 0.28 = $10,871 0.30 = $12,234 0.31 = $12,687 0.34 = $13,315 1.24 = $49,107
Total Assets $38,577 $40,321 $41,088 $39,647 $39,647
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.11
Variance 0.28 0.30 0.31 0.34 0.13
Quarter Growth/Decline 0.02 0.01 0.03
Asset to Equity Ratio = Total Assets 2.60 = $38,577 2.64 = $40,321 2.60 = $41,088 2.60 = $39,647 2.60 = $39,647
Owners' Equity $14,809 $15,281 $15,822 $15,272 $15,272
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 3.79
Variance 2.60 2.64 2.60 2.60 (1.19)
Quarter Growth/Decline 0.03 (0.04) (0.00)

Profitability

NIKE, INC.
Ratio Analysis
Profitability Ratios Q1 Q2 Q3 Q4 Annual
Definition:
Return on Assets Ratio = Net Income 0.04 = $1,396 0.04 = $1,439 0.04 = $1,468 0.03 = $1,331 0.14 = $5,634
Average Total Assets $38,577 $39,449 $39,833 $39,112 $39,112
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.03
Variance 0.04 0.04 0.04 0.03 0.11
Quarter Growth/Decline 0.00 0.00 (0.00)
Return on Equity Ratio = Net Income 0.09 = $1,396 0.10 = $1,439 0.10 = $1,468 0.09 = $1,331 0.37 = $5,634
Average Owners' Equity $14,809 $15,045 $15,316 $15,041 $15,041
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.11
Variance 0.09 0.10 0.10 0.09 0.26
Quarter Growth/Decline 0.00 0.00 (0.01)
Profit Margin Ratio = Net Income 0.13 = $1,396 0.12 = $1,439 0.12 = $1,468 0.10 = $1,331 0.11 = $5,634
Total Sales $10,871 $12,234 $12,687 $13,315 $49,107
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.03
Variance 0.13 0.12 0.12 0.10 0.08
Quarter Growth/Decline (0.01) (0.00) (0.02)
Basic Earnings Power Ratio = Earnings Before Interest and Taxes 0.04 = $1,629 0.04 = $1,468 0.04 = $1,695 0.04 = $1,587 0.16 = $6,379
Total Assets $38,577 $40,321 $41,088 $39,647 $39,647
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.82
Variance 0.04 0.04 0.04 0.04 (1.66)
Quarter Growth/Decline (0.01) 0.00 (0.00)
Earnings per Share Ratio = Net Income 0.87 = $1,396 0.90 = $1,439 0.92 = $1,468 0.84 = $1,331 3.54 = $5,634
Average Number of Common Shares $1,611 $1,603 $1,598 $1,592 $1,592
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 2.00 2.00 2.00 2.00 2.00
Variance (1.13) (1.10) (1.08) (1.16) 1.54
Quarter Growth/Decline 0.03 0.02 (0.08)

Debt

NIKE, INC.
Ratio Analysis
Debt Ratios Q1 Q2 Q3 Q4 Annual
Definition:
Total Debt Ratio = Total Liabilities 0.62 = $23,768 0.62 = $25,040 0.61 = $25,266 0.61 = $24,375 0.61 = $24,375
Total Assets $38,577 $40,321 $41,088 $39,647 $39,647
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.62
Variance 0.62 0.62 0.61 0.61 (0.01)
Quarter Growth/Decline 0.00 (0.01) (0.00)
Interest Coverage Ratio = Earnings Before Interest and Taxes 30.74 = $1,629 36.70 = $1,468 130.38 = $1,695 99.19 = $1,587 52.29 = $6,379
Interest Expense $53 $40 $13 $16 $122
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 1.53
Variance 30.74 36.70 130.38 99.19 50.76
Quarter Growth/Decline 5.96 93.68 (31.20)
Debt/Equity Ratio = Total Liabilities 1.60 = $23,768 1.64 = $25,040 1.60 = $25,266 1.60 = $24,375 1.60 = $24,375
Owners' Equity $14,809 $15,281 $15,822 $15,272 $15,272
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 2.79
Variance 1.60 1.64 1.60 1.60 (1.19)
Quarter Growth/Decline 0.03 (0.04) (0.00)

Market

NIKE, INC.
Ratio Analysis
Market Ratios Q1 Q2 Q3 Q4 Annual
Definition:
Earnings per Share = Net Income $0.87 = $1,396 $0.90 = $1,439 $0.92 = $1,468 $0.84 = $1,331 $3.54 = $5,634
(EPS) Ratio Average Number of Common Shares 1,611 1,603 1,598 1,592 1,592
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 4.17
Variance 0.87 0.90 0.92 0.84 (0.63)
Quarter Growth/Decline 0.03 0.02 (0.08)
Price to Earnings Ratio = Market Price per Share 149.68 = $129.72 125.02 = $112.24 106.81 = $98.11 123.16 = $103.00 29.10 = $103.00
Earnings per Share $0.87 $0.90 $0.92 $0.84 $3.54
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 33.90
Variance 149.68 125.02 106.81 123.16 (4.80)
Quarter Growth/Decline (24.66) (18.21) 16.35
Price to Cash Flow Ratio = Market Price per Share 28.11 = $129.72 21.94 = $112.24 17.89 = $98.11 17.84 = $103.00 4.88 = $103.00
Cash Flow per Share $4.61 $5.12 $5.49 $5.77 $21.11
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor (50.61)
Variance 28.11 21.94 17.89 17.84 55.49
Quarter Growth/Decline (6.17) (4.06) (0.05)
Payout Ratio = Dividends Paid 0.35 = $484 0.33 = $481 0.33 = $480 0.36 = $480 0.34 = $1,925
Net Income $1,396 $1,439 $1,468 $1,331 $5,634
Industry Average Insert the Industry Average for this ratio here. If you are unable to get reliable data for the Industry Average please access the data for your company's closest competitor 0.37
Variance 0.35 0.33 0.33 0.36 (0.03)
Quarter Growth/Decline (0.01) (0.01) 0.03
1492 357.7 4.1710930948

END HERE

Congratulations! You have now completed the numerical part of the assignment. Next you need to answer a very important question, "What does this all mean for investment purposes?" To do this well you need to critically examine what you have been able to achieve and reflect on what it all means for decision-making. Therefore the next step is completing the AT-EASE reflection statement.
Nike's latest financial statements, balance sheet, income, and cash flow statements provide insights into the company's financial health to source for investment purposes. This information helps determine if the company is financially stable. Investors use revenue growth, profit margins, and return on equity (ROE) to help gauge how well the company has been doing and its competitive advantages, innovation, and strategic plans. We compared Nike's financial statement to industry peers and benchmarks to understand how it stacks up in its sector. In this case, we have selected Adidas AG.

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