Key comparative figures ($ millions) for both NIKEand Reebokfollow:
|
Key Figures
|
NIKE
|
Reebok
|
|
Cash and equivalents
|
$ 108.6
|
$ 209.8
|
|
Accounts receivable
|
1,674.4
|
561.7
|
|
Inventories
|
1,396.6
|
563.7
|
|
Retained earnings
|
3,043.4
|
1,145.3
|
|
Costs of sales.
|
6,065.5
|
2,294.0
|
|
Income taxes
|
$ 253.4
|
$ 12.5
|
|
Revenues (Nike)
|
9,553.1
|
-
|
|
Net sales (Reebok)
|
-
|
3,643.6
|
|
Total assets
|
5,397.4
|
1,756.1
|
Required:
a. Compute common-size percents for both companies using the data provided.
b. Which company incurs a higher percent of their revenues (net sales) in income taxes?
c. Which company retains a higher portion of cumulative net income in the company?
d. Which company has a higher gross margin ratio on sales?
e. Which company holds a higher percent of its total assets as inventory?