Question: You are calculating the return on equity (ROE) for two major sportswear companies, Nike, Inc. and Adidas AG, for the fiscal year 2023. Requirements: Nike

You are calculating the return on equity (ROE) for two major sportswear companies, Nike, Inc. and Adidas AG, for the fiscal year 2023.

Requirements:

  1. Nike reported net income of $3 billion and shareholders' equity of $15 billion for the fiscal year 2023. Adidas reported net income of $2.5 billion and shareholders' equity of $12 billion during the same period.
  2. Calculate the ROE for both Nike and Adidas.
  3. Compare the ROE of Nike and Adidas and discuss their profitability relative to shareholders' equity.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Hello dear, I need help in answering the 8 excel sheets and qualitative analysisfor case study exam for managerial accounting, I will attach the following: 1. The case study (FARMACY INC.:...

Q:

Evaluation and Control in Strategic Management Evaluation and control information consists of performance data and activity reports (gathered in Step 3 in Figure 11-1). If undesired performance...

Q:

Hello This is regarding BUS5440. I need help with the following discussion questions and I need the answer in next 2 hrs as I have a deadline today, *********************************** Share your...

Q:

target walmart appendix D more information on target more information on walmart Refet to the financial statements of Target (Agpendix B) and Waimart (Apgendix C) and the Industry Ratio Report...

Q:

Hello I am going to attach my previous papers for this assignment as well as the rubric. Overall in the rubric I need assistance writing part 5 the conclusion. please give the best answer after...

Q:

Description Using the financial statements for Apple Inc. and Microsoft, Inc., respectively, you will calculate and compare the financial ratios listed further down this document and compare your...

Q:

Hello This is related to Course BUS5440. I need help with the following project:- OCS Project 1) These are the instructions given in my class to do this project:- The OCS project requires you to...

Q:

Please answer D,E, and F with the information below: e. d. Compute the accounts receivable turnover (ART), inventory turnover (INVT), and property, plant, and equipment turnover (PPET) for each...

Q:

Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of leverage on the cost of...

Q:

Hello This is related to Course BUS5440. I need the answer in next 2 hrs. Can you also help me with the following discussion questions? It's related to the WACC project that I sumbitted....

Q:

Diethyl ether, C4H10O(l), a flammable compound that has long been used as a surgical anesthetic, has the structure CH3 CH2 O CH2 CH3 The complete combustion of 1 mol of C4H10O(l) to CO2(g) and...

Q:

Assume that in early January 2012, a Sunshine Bakery restaurant purchased a building, paying $53,000 cash and signing a $103,000 note payable. The restaurant paid another $66,000 to remodel the...

Q:

The annual data that follows pertain to Joe's Pool Stuff, a manufacturer of swimming goge (Click the icon to view the data.) Read the requirements. 1,315,000 Less: Operating expenses $ 2,645,000...

Q:

Plug flow with forced-convection heat transfer. Very thick slurries and pastes sometimes move in channels almost as a solid plug. Thus, one can approximate the velocity by a constant value v 0 over...

Q:

Heat loss from a rectangular fin calculates the heat loss from a rectangular fin (see Fig. 10.7-1) for the following conditions: Air temperature 350F Wall temperature 500F Thermal conductivity of fin...

Q:

It has been suggested that plant and equipment could be replaced more quickly if depreciation rates for income tax and accounting purposes were substantially increased. As a result, business...

Q:

It is desired to magnify reading material by a factor of 2.5 x when a book is placed 8.0cm behind a lens. (a) Draw a ray diagram and describe the type of image this would be. (b) What type of lens is...

Q:

Two plane mirrors face each other 2.0m apart as in Fig. 23-53. You stand 1.5m away from one of these mirrors and look into it. You will see multiple images of yourself. (a) How far away from you are...

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

What impact does the salvage value of equipment purchased have on the capital expenditure decision? LO.1

Q:

Two specific capital budgeting decisions, equipment replacement and investing vs. financing decisions. LO.1

Q:

Decision criteria under cash flow accounting, such as net present valve, internal rate of return on investment, payback and the profitability index. LO.1