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5)

Quick ratio: Company= 2.42 Industry= 0.91

The quick ratio measures a company's ability to meet its short-term obligations with

its most liquid assets. The higher the quick ratio, the better the position of the

company.

A quick ratio of NIKE is greater than industry average may suggest that the

company is investing too many resources in the working capital of the business

which may more profitably be used elsewhere

Debt-equity ratio: Company= 1.51 Industry= 8.74

The debt to equity ratio of NIKE Company is 1.51. It means that for every dollar of

Company NIKE owned by the shareholders, Company NIKE owes $1.51 to creditors.

For most companies the maximum acceptable debt-to-equity ratio is 1.5-2 and less.

In general, a high debt-to-equity ratio indicates that a company may not be able to

generate enough cash to satisfy its debt obligations

Inventory turnover ratio: Company=4.26 Industry= 1.88

The inventory turnover ratio of NIKE Company is higher than industry. It indicates a

greater sales efficiency and a lower risk of loss through stocks that can not easy to

sell. However, too high an inventory turnover that is out of proportion to industry

may suggest losses due to shortages, and poor customer-service.

Return on assets: Company=15.24 Industry= 4.45

Return on assets of NIKE is much higher compared with industry.It mean that NIKE

Company has used its assets effectively

Price-earnings ratio: Company= 25.30 Industry= 10.07

NIKE Company has a P/E higher than the industry average; this means that the

market is expecting big things over the next few months or years. A company with a

high P/E ratio will have to live up to the high rating by substantially increasing its

earnings, or the stock price will need to drop.

Sales - 5 Yr. Growth Rate: Company= 8.13 Industry= 12.69

NIKE Company with revenue growth rate is not high; it indicated that company is in

slow development stage, reduced market share, no business operations into new

markets or sectors. However, the growth rate of sale is not necessarily associated

with growth rates of profits.

EPS - 5 Yr. Growth Rate: Company= 10.10 Industry= 18.35

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Earnings per share provide information about recurring income per common share.

It reflects the ability to generate a net profit on shares that shareholder

contributions. NIKE company have lower EPS will not attract much more investment

by companies higher EPS create greater shareholder returns and vice versa.

6)

The S&P 500, or the Standard & Poor's 500, is a stock market index based on the

market capitalizations of 500 leading companies publicly traded in the U.S. stockmarket, as determined by Standard & Poor's. It is one of the most commonly

followed equity indices and many consider it the best representation of the market

as well as a bellwether for the U.S. economy. Because the S&P 500 index is market

weighted every stock in the index is represented in proportion to its total market

capitalization. In other words, if the total market value of all 500 companies in the

S&P 500 drops by 10%, the value of the index also drops by 10%

Based on stock chart we can see that the company's stock price tends to rise and

fluctuations together with market index during the past 5 years.