For this corporate finance discussion, we are going to be looking to the future. In...

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Accounting

For this corporate finance discussion, we are going to be looking to the future. In this discussion, please post your thoughts on where Nikes company's finances are heading in the years to come.
please create tables showcasing your estimates as to how Nikes financial ratios will appear in the next 3-5 years on liquidity, solvency, profitability, and for investing with some discussion as to why you believe things will improve, remain stable, or decline over that period.
Here is an example:
DraftKings 202420252026
Liquidity (Current Ratio)1.361.632.01
Solvency (Debt-to-Equity)1.621.842.03
Profitability (Net Profit Margin)-21.32%-7.21%1.84%
From looking at DraftKings' numbers from 2021-2023, for those three years, they have gone up and down in these three categories. For the liquidity of the company, I think it will continue to dip this year in 2024 and slightly go up in 2025. But by 2026 I expect them to be able to be over that 2.00 mark to show that they are paying off their debts and liabilities easier since the company is growing more and more each year. For DraftKings' solvency, I think it will continue to go up by large increments. It does not mean the company is in an enormous amount of debt but since they are growing and expanding, debt is going to be a little more than equity for a few years. Finally, for the profitability of DraftKings, I think by 2026 they will be able to get out of the negative for profitability and be able to have some gain in the quarter for 2026. For 2024 and 2025 they will still be working up to being past negative profitability and hit a good stride in 2026 and grow more from there. DraftKings is still expanding a great deal and with more and more states passing sports betting laws to allow people to do it, means a positive for DraftKings.

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