erred dividends/ avg common stockholders? equity 451.4 divided by 3298.1 = .136 This rate of return again is a measuring stick of profitability. Nike?s 13.6% rate of return on stockholder?s equity would be considered strong in most industries. Earnings per share of Common Stock = 1.59 This ratio must appear on the face of a company?s income statement. Nike (EPS) is up from 1.35 in 1998. This is another sign of a strong company, although it is not uncommon for a company to have a down year. These ratios show the following: Nike has a very good ability to pay current liabilities. This was evident in the current ratio and the acid test. Nike has an excellent ability to pay short term and long-term debt. This was proven in the debt ratio and times-interest-earned ratio. Nike is a solid company in 1999, from a profitability stand point. This was apparent in the Rates of return on sales, assets, and common stockholder equity. I would recommend Nike to a potential investor because of the reasons listed above, in this analysis. I would also recommend a thorough analysis of the Industry by researching at least tow of Nike?s closest competitors. ...
