Calculate the following profitability ratios Return on Assets Asset Turnover Gross Margin Return on Common Shareholders' Equity
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Question:
Calculate the following profitability ratios
Return on Assets
Asset Turnover
Gross Margin
Return on Common Shareholders' Equity
Discuss the profitability of Nike vs. Under Armour based on these ratios.
Transcribed Image Text:
PART II NIKE, Inc. Consolidated Statements of Income (in millions, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other expense (income), net Income before income taxes Income tax expense NET INCOME Earnings per common share: Basic Diluted Dividends declared per common share The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. $ 69 69 69 2018 Year Ended May 31, 2017 36,397 $ 20,441 15,956 3,577 7,934 11,511 54 66 4,325 2,392 1,933 S 1.19 S 1.17 S 0.78 $ 34,350 $ 19,038 15,312 3,341 7,222 10,563 59 (196) 4,886 646 4,240 $ 2.56 $ 2.51 $ 0.70 $ 2016 32,376 17,405 14,971 3,278 7,191 10,469 19 (140) 4,623 863 3,760 2.21 2.16 0.62 PART II NIKE, Inc. Consolidated Statements of Income (in millions, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other expense (income), net Income before income taxes Income tax expense NET INCOME Earnings per common share: Basic Diluted Dividends declared per common share The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. $ 69 69 69 2018 Year Ended May 31, 2017 36,397 $ 20,441 15,956 3,577 7,934 11,511 54 66 4,325 2,392 1,933 S 1.19 S 1.17 S 0.78 $ 34,350 $ 19,038 15,312 3,341 7,222 10,563 59 (196) 4,886 646 4,240 $ 2.56 $ 2.51 $ 0.70 $ 2016 32,376 17,405 14,971 3,278 7,191 10,469 19 (140) 4,623 863 3,760 2.21 2.16 0.62
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Formulas Return on assetsNet income Total assets 100 Assets Turnover Net sale s Total assets100 Gros... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
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