a. Compute the current ratio and quick ratio for 2018 and 2019. Comment on any observed trends.

b. Compute total liabilities-to-equity ratio and total debt-to-equity ratio for 2018 and 2019. Comment on any trends observed.

c. Compute times interest earned ratio, cash from operations to total debt ratio, and free operating cash flow to total debt ratio for 2018 and 2019. Financial statements included the following footnote: " Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $82 million and $70 million for the years ended May 3 1, 2019 and 2018, respectively." Comment on any trends observed.

d. Summarize findings in a conclusion about the company's credit risk. Are there any concerns about the company's ability to meet its debt obligations?

2019 2018 $36,397 20,441 15,956 NIKE, INC. Consolidated Statements of Income Year Ended May 31 (in millions) Revenues... Cost of sales. Gross profit... Demand creation expense.... Operating overhead expense.. Total selling and administrative expense.. Interest expense (income), net.. Other (income) expense, net .. Income before income taxes Income tax expense. Net income 3,577 7,934 $39,117 21,643 17,474 3,753 8,949 12,702 49 (78) 4,801 772 $ 4,029 11,511 54 66 4,325 2,392 $ 1,933 2019 2018 $4,029 $1,633 705 34 325 15 233 747 647 218 27 (99) 187 (270) (490) (203) (255) 35 1.525 5,903 1,515 4,955 NIKE, INC. Consolidated Statements of Cash Flows Year Ended May 31 (in millions) Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other. Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories... (Increase) decrease in prepaid expenses and other current and non-current assets. Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities.. Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments. Sales of short-term investments Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities.... Cash provided (used) by investing activities Cash used by financing activities: Long-term debt payments, including current portion Increase (decrease) in notes payable.. Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends-common and preferred Tax payments for net share settlement of equity awards Cash used by financing activities... Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents. Cash and equivalents, beginning of year.. Cash and equivalents, end of year. (2,937) 1.715 2,072 (1.119) 5 (4,783) 3.613 2.496 (1.028) 3 (25) ( (264) 276 (23) (6) (325) (27) 700 (4,286) (1332) (17) (5.293) (4.254) (1.243) (55) | | | | (4.835) (129) 217 4,249 $4,466 3,808 $4,249 2019 2018 $ 4,249 996 3,498 5,261 1,130 $ 4,466 197 4,272 5,622 1,968 16,525 4,744 283 154 2,011 $23,717 15,134 4,454 285 154 2,509 $22,536 NIKE, INC. Consolidated Balance Sheets May 31 (in millions) Assets Current assets Cash and equivalents.. Short-term investments Accounts receivable, net. Inventories Prepaid expenses and other current assets. Total current assets. Property, plant, and equipment, net. Identifiable intangible assets, net. Goodwill Deferred income taxes. Total assets. Liabilities and shareholders' equity Current liabilities Current portion of long-term debt Notes payable... Accounts payable Accrued liabilities Income taxes payable. Total current liabilities. Long-term debt. Deferred income taxes and other liabilities Shareholders' equity Class A convertible-315 and 329 shares outstanding. Class B-1,253 and 1,272 shares outstanding.. Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings. Total shareholders' equity. Total liabilities and shareholders' equity 6 $ 6 9 336 2,612 2,279 5,010 3,269 229 150 7,866 3,464 3,347 6,040 3,468 3,216 - 3 7,163 231 1,643 9,040 3 6,384 (92) 3,517 9,812 $22,536 $23,717