Reference no: EM133553299

Question: It is important to know how to calculate the various ratios for analysis and to perform both horizontal and vertical analyses on the income statement and balance sheet. However, it is also vital to be able reflect on these analyses and to interpret what the various calculations tell us about a particular company and its financial health. This paper will give you an opportunity to analyze the ratios and the horizontal/vertical analyses in terms of the company's overall financial health. Evaluate Nike Co. in terms of the ratio analysis, horizontal analysis and vertical analysis. In 500-700 words address the following: What do the ratios calculated over the two-year period tell us about the company's (a) liquidity (b) profitability and (c) solvency? Evaluate the company's financial health based on each category of ratios. Based on the changes reflected in the horizontal and vertical analyses of the income statement and balance sheet, discuss any changes that would be significant and what these changes might indicate for the company.