 RNOA

 NOPAT

 NOA

 Times interest earned

2021 2022 2023

RNOA 9.442 10.71 11.086
NOPAT 58.136 66.082 68.043
NOA 4.029 7.861 6.621
Time interest
-24.42 -31.44 1.035
earned
 =>Compare each years of RNOA ,NOA,NOPAT,Time interested

 RNOA evaluates operating income a company derives relative to the operating assets
it holds. An increasing RNOA means that a company is deriving more and more profit
out of its operating assets.

+ In 2022, the increase of (1.258) units compared to 2021 is equivalent to an increase

of 13.43 (%) . RNOA of NIKE in 2022 is higher than in 2021 means that Nike is
deriving more and more profit out of its operating assets.

+ In 2023, the Increase of (0.35) units compared to 2022 is equivalent to an increase

of 3.51(%) .An increasing RNOA means that a company is deriving more and more
profit out of its operating assets .

 NOA is a financial metric that measures the operating assets of a company minus its
operating liabilities.
+ In 2022, the increase of (3.832) units compared to 2021 is equivalent to an increase
of 95.11(%).The NOA for the years 2021-2022 that the information provided
indicates that the company's operating assets have been decreasing over time and
shows that this is not the right time to invest.
+ In 2023, the decrease of (1.24) units compared to 2022 is equivalent to an decrease
of 15.77(%) .The NOA for the years 2022-2023 that the information provided
indicate that the company's operating assets have been increasing over time. This
suggests that the company has been generating more revenue or profits over the years,
which is a great sign for investors.
 NOPAT or Net Operating Profit after Tax is a profitability measure in which a
company’s profit is calculated excluding the effect of leverage by assuming that the
company does not have any debt in its capital and, in turn, ignores the interest
payments and the tax advantage which companies get by issuing debt in their capital.
 + In 2022, the increase of (7.946) units compared to 2021 is equivalent to an increase
of 13.67 (%) . NOPAT of NIKE in 2022 is higher than in 2021 means is a
profitability measure in which a company’s profit is calculated excluding the effect of
leverage by assuming that the company does not have any debt in its capital .
+ In 2023, the Increase of (1.961) units compared to 2022 is equivalent to an increase
of 4(%) .An increasing NOPAT means a company is making more and more profit
than after taxes.
 Times interest earned

The interest rate earned times ( -24.42, -31.44, 1.035 ) shows that at the time of 2021,
2022, 2023, Nike Company's profit before tax and interest is higher (-24.42, - 31.44,
1,035) times compared to the Company's interest expense. From there, it shows that
the Company is operating and using loan capital ineffectively (2021-2022) and has
not well controlled interest costs, thereby creating little profit from production and
business activities. But by 2023 tend to increase and control interest costs well,
creating positive growth.

=> Total debt to equity in the three years 2021, 2022, 2023 is greater than 1, meaning
the company has more debt than capital, creating high risk.