Nike Current Ratio:

Nike's current ratio ended 2015 at 2.52.  In the next two years, the current ratio position would fall to .69 in 2017.  This indicates that the firm did not have substantial current assets to cover its current projected liabilities.  In 2018 and 2019, the organization's current ratio would rebound to 2.51 and 2.10 prospectively.  This shows that the firm actually has too much current assets as compared to current liabilities.  To improve upon Nike's current ratio, the organization should either reduce their accounts receivable position or lower their inventory holding.  Sensed Nike's inventory holding seems to work well for the firm; the choice for improvement would fall on the Accounts Receivable department.

Nike Total Asset Turnover:

Nike's total asset turnover ended in 2015 at 1.42.  In the next several years, the total asset turnover would improve to 1.6.  This shows that the firm is slowly but surely improving the usage of its assets under management.  However, directly impacting the total asset turnover would be Nike's fixed asset turnover, which has steadily been decreasing from 10.1 in 2015 to 8.2 and 2019.  This indicates that for Nike to improve its total asset turnover, they need to focus on either increasing their fixed asset usage or selling underutilized property and equipment.

Nike Return on Assets:

Nike's return on assets ended 2015 at 15.1%.  In the next two years, their return on assets would grow moderately to 18.2% in 2017.  However, in 2018, the return on assets would fall to 8.5% only to rebound in 2019 to 16.99%.  The fluctuations in return on assets show that there was some activity in their operations that had inverse impacts on the company in 2018.  As an investor, 2020's return on assets should be watched closely.  If the trend continues to improve, then this indicates that 2018's drop in return on assets was a fluke.  However, if the return on assets falls again, then this may indicate that management has not identified business models that are optimal for their organization.  In other words, more fluctuation would indicate that the company is facing external environmental changes that are not being optimally responded to in their internal environment.

Nike Debt ratio.

Nike's debt ratio in 2015 was 5.0%.  In the next four years, their debt ratio would steadily grow to 15.4% in 2018.  However, in 2019, their debt ratio would fall slightly to 14.6%.  From the perspective of risk, having such a low debt ratio is excellent.  This means that in the event of a recession, the organization has financing opportunities available.  From a growth perspective, this shows that the company has relatively little confidence in their ability to generate excess monies from borrowed funds.  Another way of saying this is that the company may be running out of good ideas for growth, and they are playing it safe by not taking out too much debt.