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turnover equity multiplier Affect of a : (a1a0) b0 c0 ( % % ) = % Affect of b : a1 ( b1b0 ) c0 % ( ) = % Affect of c : a1 b1 ( c1c0 ) % ( ) = % Ratio Assets management Profitability Longterm solvency Market value Market value Earnings per Share= Earnings per Share Adidas Nike 2022 2022 2022 Adidas’ earning per share had increased in 2022 and is higher than Nike’s. Net ine – preference dividends WeightedAverage ordinary shares outstanding PriceEarnings Ratio Adidas Nike 2022 2022 2022 times times times Adidas’ PE ratio had increased in 2022 and is higher than Nike’s too. So investors were more confident for future than those for Nike. PriceEarnings Ratio= 2022 2022 Market value Ratio Assets management Profitability Longterm solvency Market value Longterm solvency Debt to Total Assets Ratio= 2022 2022 Debt to Total Assets Ratio Adidas Nike 2022 2022 2022 % % % Although Adidas’ debt to total assets ratio had declined in 2022, it was still higher than Nike. Times Interest Earned Adidas 2022 2022 times times There just Adidas’ times interest earned. It had decreased in 2022. Times Interest Earned= 2022 2022 Longterm solvency Risks analysis If he keeps the high debt, his profit will be lower than before. And maybe the investor will choose another pany. Adidas will meet the dilemma of development Higher interest earned means lower risks. So Adidas does well in this way. Strategy analysis Using conservative market expansion policy Aim at highend market (高端市 場(chǎng) ) Change the Single sales channels Summary ?Adidas is a potential and profitable pany. ? Improve the chainvalue , lower the cost ,Strengthen the products addvalue . ?Enhance market share . ?Its debt paying ability is poor. Optimize the capital and expenditure structure.