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Financial Ratios- Year End 2008Nike Profit Margin (net income/sales): 1,883,400/18,627,000= .10111129Nike ROA (net income/ total assets): 1,883,400/12,442,700= .151365861Nike ROE (net income/ stockholders equity): 1,883,400/ 7,825,300= .240680868Nike Inventory Turnover (sales/ inventory): 18,627,000/ 2,438,400= 7.639025591Nike Receivables Turnover (sales/ receivables): 18,627,000/ 3,022,500= 6.162779156Nike Current Ratio (current assets/ current liabilities): 8,839,300/ 3,321,500= 2.661237393Nike Quick Ratio (current assets- inventory/ current liabilities): 8,839,300- 2,438,400/ 3,321,500= 1.927111245Nike Debt to total assets (total debt/ total assets): 4,617,100/ 12,442,700= .37106898Adidas Profit Margin (net income/ sales): 207,923/ 860,577= .241608828Adidas ROA (net income/ total assets): 207,923/ 4,843,612= .042927262Adidas ROE (net income/ stockholders equity): 207,923/ Not available= N/AAdidas Inventory Turnover (sales/inventory): 860,577/ 21,428= 40.16133097Adidas Receivables Turnover (sales/receivables): 860,577/ 1,318,875Adidas Current Ratio (current assets/ current liabilities): 4,843,612/ 2,813,972= 1.72127228Adidas Quick Ratio (current assets- inventory/ current liabilities): 1,345,571- 21,428/ 2,813,972= .470560119Adidas Debt to total assets (total debt/ total assets): Not available/ 4,843,612*These numbers were taken from the balance, income, statement of cash flow for the year 2008. Nike’s numbers were pulled off of Yahoofinance, and Adidas from the annual report on .*Profitability ratios consist of the profit margin, return on assets (ROA), and return on equity (ROE). The ratios allow analyst to measure the company’s ability to earn money. The receivables turnover and inventory turnover allows an analyst to see how many times a company sells its inventory and collects debt owed. The quick and current ratios are liquidity ratios that show how quickly a company can pay off short term debt. Lastly there are the debt utilization ratios (debt to total assets), and they show the position the company is in based upon their assets and earning power. As of 11/24/2009 Nike’s Debt/ Equity Ratio.06Gross Margin44.53%Net Profit Margin8.03%Total Shares Outstanding487.0 MilMarket Capitalization31.47 MilEarnings/Share3.04StockScouter Rating7panyreport?Symbol=NKE 11/24/2009As of 11/24/2009 AdidasDebt/ Equity Ratio.82Gross Margin45.44%Net Profit Margin2.66%Total Shares Outstanding193.5 MilMarket Capitalization10.11 BilEarnings/Share2.00StockScouter RatingNA 11/24/2009*Adapted from Block, Stanley B., and Hirt, Geoffrey A. Foundations of Financial Management, eleventh edition. McGraw-Hill Irwin New York, NY 2005, p.54-56).*, retrieved 11/24/2009*, retrieved 11/24/2009*adidas annual report ................
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