NIKE:
Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information from 2016. Each ratio also needs to be broken down and illustrated by the step by step process. Finally, please include any and all observations for each ratio and analysis.
1) Common Size analysis
2) Common size vertical analysis & graph
3) Current Ratio
4) Quick Ratio
5) Cash Ratio
6) Inventory Turnover
7) Receivables Turnover
8) Total Asset Turnover
9) Fixed Asset Turnover
10) Gross profit margin
11) Operating Profit margin
12) Net profit margin
13) Return on total assets
14) return on equity
15) basic earning power
16) Deb/net worth ratio
17) debt ratio
18) DuPont System
19) Times-interest-earned
Balance Sheet:
Consolidated Balance Sheets - USD ($) $ in Millions May 31, 2017 May 31, 2016 Current assets: Cash and equivalents $ 3,808 $ 3,138 Short-term investments 2,371 2,319 Accounts receivable, net 3,677 3,241 Inventories 5,055 4,838 Prepaid expenses and other current assets 1,150 1,489 Total current assets 16,061 15,025 Property, plant and equipment, net 3,989 3,520 Identifiable intangible assets, net 283 281 Goodwill 139 131 Deferred income taxes and other assets 2,787 2,422 TOTAL ASSETS 23,259 21,379 Current liabilities: Current portion of long-term debt 6 44 Notes payable 325 1 Accounts payable 2,048 2,191 Accrued liabilities 3,011 3,037 Income taxes payable 84 85 Total current liabilities 5,474 5,358 Long-term debt 3,471 1,993 Deferred income taxes and other liabilities 1,907 1,770 Commitments and contingencies Redeemable preferred stock 0 0 Shareholdersâ equity: Capital in excess of stated value 8,638 7,786 Accumulated other comprehensive (loss) income (213) 318 Retained earnings 3,979 4,151 Total shareholdersâ equity 12,407 12,258 TOTAL LIABILITIES AND SHAREHOLDERSâ EQUITY 23,259 21,379 Class A Convertible Common Stock Shareholdersâ equity: Common stock at stated value 0 0 Class B Common Stock Shareholdersâ equity: Common stock at stated value $ 3 $ 3
Income Statement:
Consolidated Statements of Income - USD ($) $ in Millions 12 Months Ended May 31, 2017 May 31, 2016 May 31, 2015 Income Statement [Abstract] Revenues $ 34,350 $ 32,376 $ 30,601 Cost of sales 19,038 17,405 16,534 Gross profit 15,312 14,971 14,067 Demand creation expense 3,341 3,278 3,213 Operating overhead expense 7,222 7,191 6,679 Total selling and administrative expense 10,563 10,469 9,892 Interest expense (income), net 59 19 28 Other (income) expense, net (196) (140) (58) Income before income taxes 4,886 4,623 4,205 Income tax expense 646 863 932 NET INCOME $ 4,240 $ 3,760 $ 3,273 Earnings per common share: Basic (in dollars per share) $ 2.56 $ 2.21 $ 1.90 Diluted (in dollars per share) 2.51 2.16 1.85 Dividends declared per common share (in dollars per share) $ 0.70 $ 0.62 $ 0.54
Cash Flow Sheet
Consolidated Statements of Cash Flows - USD ($) $ in Millions 12 Months Ended May 31, 2017 May 31, 2016 May 31, 2015 Cash provided by operations: Net income $ 4,240 $ 3,760 $ 3,273 Income charges (credits) not affecting cash: Depreciation 706 649 606 Deferred income taxes (273) (80) (113) Stock-based compensation 215 236 191 Amortization and other 10 13 43 Net foreign currency adjustments (117) 98 424 Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (426) 60 (216) (Increase) in inventories (231) (590) (621) (Increase) in prepaid expenses and other current assets (120) (161) (144) (Decrease) increase in accounts payable, accrued liabilities and income taxes payable (364) (889) 1,237 Cash provided by operations 3,640 3,096 4,680 Cash used by investing activities: Purchases of short-term investments (5,928) (5,367) (4,936) Maturities of short-term investments 3,623 2,924 3,655 Sales of short-term investments 2,423 2,386 2,216 Investments in reverse repurchase agreements 0 150 (150) Additions to property, plant and equipment (1,105) (1,143) (963) Disposals of property, plant and equipment 13 10 3 Other investing activities (34) 6 0 Cash used by investing activities (1,008) (1,034) (175) Cash used by financing activities: Net proceeds from long-term debt issuance 1,482 981 0 Long-term debt payments, including current portion (44) (106) (7) Increase (decrease) in notes payable 327 (67) (63) Payments on capital lease and other financing obligations (17) (7) (19) Proceeds from exercise of stock options and other stock issuances 489 507 514 Excess tax benefits from share-based payment arrangements 177 281 218 Repurchase of common stock (3,223) (3,238) (2,534) Dividends â common and preferred (1,133) (1,022) (899) Cash used by financing activities (1,942) (2,671) (2,790) Effect of exchange rate changes on cash and equivalents (20) (105) (83) Net increase (decrease) in cash and equivalents 670 (714) 1,632 Cash and equivalents, beginning of year 3,138 3,852 2,220 CASH AND EQUIVALENTS, END OF YEAR 3,808 3,138 3,852 Cash paid during the year for: Interest, net of capitalized interest 98 70 53 Income taxes 703 748 1,262 Non-cash additions to property, plant and equipment 266 252 206 Dividends declared and not paid $ 300 $ 271 $ 240
NIKE:
Need the following ratios to be calculated using the financial sheets copied at the bottom. Each ratio needs to be calculated using the information from 2016. Each ratio also needs to be broken down and illustrated by the step by step process. Finally, please include any and all observations for each ratio and analysis.
1) Common Size analysis
2) Common size vertical analysis & graph
3) Current Ratio
4) Quick Ratio
5) Cash Ratio
6) Inventory Turnover
7) Receivables Turnover
8) Total Asset Turnover
9) Fixed Asset Turnover
10) Gross profit margin
11) Operating Profit margin
12) Net profit margin
13) Return on total assets
14) return on equity
15) basic earning power
16) Deb/net worth ratio
17) debt ratio
18) DuPont System
19) Times-interest-earned
Balance Sheet:
Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2017 | May 31, 2016 |
Current assets: | ||
Cash and equivalents | $ 3,808 | $ 3,138 |
Short-term investments | 2,371 | 2,319 |
Accounts receivable, net | 3,677 | 3,241 |
Inventories | 5,055 | 4,838 |
Prepaid expenses and other current assets | 1,150 | 1,489 |
Total current assets | 16,061 | 15,025 |
Property, plant and equipment, net | 3,989 | 3,520 |
Identifiable intangible assets, net | 283 | 281 |
Goodwill | 139 | 131 |
Deferred income taxes and other assets | 2,787 | 2,422 |
TOTAL ASSETS | 23,259 | 21,379 |
Current liabilities: | ||
Current portion of long-term debt | 6 | 44 |
Notes payable | 325 | 1 |
Accounts payable | 2,048 | 2,191 |
Accrued liabilities | 3,011 | 3,037 |
Income taxes payable | 84 | 85 |
Total current liabilities | 5,474 | 5,358 |
Long-term debt | 3,471 | 1,993 |
Deferred income taxes and other liabilities | 1,907 | 1,770 |
Commitments and contingencies | ||
Redeemable preferred stock | 0 | 0 |
Shareholdersâ equity: | ||
Capital in excess of stated value | 8,638 | 7,786 |
Accumulated other comprehensive (loss) income | (213) | 318 |
Retained earnings | 3,979 | 4,151 |
Total shareholdersâ equity | 12,407 | 12,258 |
TOTAL LIABILITIES AND SHAREHOLDERSâ EQUITY | 23,259 | 21,379 |
Class A Convertible Common Stock | ||
Shareholdersâ equity: | ||
Common stock at stated value | 0 | 0 |
Class B Common Stock | ||
Shareholdersâ equity: | ||
Common stock at stated value | $ 3 | $ 3 |
Income Statement:
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 34,350 | $ 32,376 | $ 30,601 |
Cost of sales | 19,038 | 17,405 | 16,534 |
Gross profit | 15,312 | 14,971 | 14,067 |
Demand creation expense | 3,341 | 3,278 | 3,213 |
Operating overhead expense | 7,222 | 7,191 | 6,679 |
Total selling and administrative expense | 10,563 | 10,469 | 9,892 |
Interest expense (income), net | 59 | 19 | 28 |
Other (income) expense, net | (196) | (140) | (58) |
Income before income taxes | 4,886 | 4,623 | 4,205 |
Income tax expense | 646 | 863 | 932 |
NET INCOME | $ 4,240 | $ 3,760 | $ 3,273 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 2.56 | $ 2.21 | $ 1.90 |
Diluted (in dollars per share) | 2.51 | 2.16 | 1.85 |
Dividends declared per common share (in dollars per share) | $ 0.70 | $ 0.62 | $ 0.54 |
Cash Flow Sheet
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2015 | |
Cash provided by operations: | |||
Net income | $ 4,240 | $ 3,760 | $ 3,273 |
Income charges (credits) not affecting cash: | |||
Depreciation | 706 | 649 | 606 |
Deferred income taxes | (273) | (80) | (113) |
Stock-based compensation | 215 | 236 | 191 |
Amortization and other | 10 | 13 | 43 |
Net foreign currency adjustments | (117) | 98 | 424 |
Changes in certain working capital components and other assets and liabilities: | |||
(Increase) decrease in accounts receivable | (426) | 60 | (216) |
(Increase) in inventories | (231) | (590) | (621) |
(Increase) in prepaid expenses and other current assets | (120) | (161) | (144) |
(Decrease) increase in accounts payable, accrued liabilities and income taxes payable | (364) | (889) | 1,237 |
Cash provided by operations | 3,640 | 3,096 | 4,680 |
Cash used by investing activities: | |||
Purchases of short-term investments | (5,928) | (5,367) | (4,936) |
Maturities of short-term investments | 3,623 | 2,924 | 3,655 |
Sales of short-term investments | 2,423 | 2,386 | 2,216 |
Investments in reverse repurchase agreements | 0 | 150 | (150) |
Additions to property, plant and equipment | (1,105) | (1,143) | (963) |
Disposals of property, plant and equipment | 13 | 10 | 3 |
Other investing activities | (34) | 6 | 0 |
Cash used by investing activities | (1,008) | (1,034) | (175) |
Cash used by financing activities: | |||
Net proceeds from long-term debt issuance | 1,482 | 981 | 0 |
Long-term debt payments, including current portion | (44) | (106) | (7) |
Increase (decrease) in notes payable | 327 | (67) | (63) |
Payments on capital lease and other financing obligations | (17) | (7) | (19) |
Proceeds from exercise of stock options and other stock issuances | 489 | 507 | 514 |
Excess tax benefits from share-based payment arrangements | 177 | 281 | 218 |
Repurchase of common stock | (3,223) | (3,238) | (2,534) |
Dividends â common and preferred | (1,133) | (1,022) | (899) |
Cash used by financing activities | (1,942) | (2,671) | (2,790) |
Effect of exchange rate changes on cash and equivalents | (20) | (105) | (83) |
Net increase (decrease) in cash and equivalents | 670 | (714) | 1,632 |
Cash and equivalents, beginning of year | 3,138 | 3,852 | 2,220 |
CASH AND EQUIVALENTS, END OF YEAR | 3,808 | 3,138 | 3,852 |
Cash paid during the year for: | |||
Interest, net of capitalized interest | 98 | 70 | 53 |
Income taxes | 703 | 748 | 1,262 |
Non-cash additions to property, plant and equipment | 266 | 252 | 206 |
Dividends declared and not paid | $ 300 | $ 271 | $ 240 |