TermA3 ACC.docx - 1 Financial Analysis of the Firm You will perform an in depth analysis where you apply financial statement tools to significant

TermA3 ACC.docx - 1 Financial Analysis of the Firm You will...

This preview shows page 1 out of 1 page.

Financial Analysis of the Firm You will perform an in depth analysis, where you apply financial statement tools to significant company activities, using applicable financial ratios and common size statement analysis for your company over the last three years. 1. Assess short-term liquidity and long-term solvency Throughout the years, Nike’s debt-to-equity and debt-to-capital ratios have been on the slow decline. As of May 2018, Nike’s debt-to-equity was .39 in contrast to the year before of .31. Nike’s debt-to-capital ratio as of May 2018 was .28 in contrast to . 23 the year before. The solvency ratio is a great metric used by a company like NIKE to measure the company’s ability to meet its debt obligations. It measures whether a company’s cash flow is sufficient enough to meet either short or long-term liabilities. If the ratio is less than 1.0, the company is in good shape. A ratio of 1.0 and higher means that
Image of page 1
  • Fall '15

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes