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Look at evaluating Nike's liquidity ratios and comparing them to the industry average. Lenders, creditors and...

Look at evaluating Nike's liquidity ratios and comparing them to the industry average. Lenders, creditors and suppliers find liquidity ratios quite useful in deciding whether or not to grant credit.

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Liquidity ratios are useful in telling whether the company has enough current assets to meet the current liability.

current, quick and cash ratio are 3 major liquidity measurement ratio. These can be calculated by looking at the balance sheet of the company. Higher ratio than the industry is good for the lenders as it indicates the better liquidity management.

These ratios are calculated in the below excel sheet and it is found that Nike has better liquidity ratio than the industry average so they can be easily lent as compared to the peers.

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