Analysis of Nike Corporation

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Analysis of Nike Corporation Financial Analysis Description of Company History Nike Corporation has become one of the most competitive sports and fitness companies worldwide. Two runners, Bill Bowerman and Phil Knight, from a small town in Oregon embarked upon the business with a handshake agreement. The enterprise began in January of 1964 with the introduction of Blue Ribbon Sports. In 1966 the handshake between Bowerman and Knight was made official with a formal written partnership. While the company was still young there were others who were imperative participants in the growth of the corporation. Jeff Johnson became Blue Ribbon Sports’ first full time employee in 1965. Johnson sold shoes out of the back of his van at high school track meets. Johnson also opened the first retail store in California and is credited with providing Nike with its name. In 1971 the swoosh trademark was created for a minimal fee of only thirty five dollars by a graphic design student named Carolyn Davidson. By 1972, new athletic footwear was introduced by Blue Ribbon Sports and called Nike. The Blue Ribbon Sports Company had business relations with Onitsuka Tiger for nearly ten years and in 1972 the two hit a bump in the road. Due to a dispute over distribution there was an eventual sever in business dealings between the two companies. That same year the Nike line of footwear made its debut in February at a Chicago sporting goods show. At the 1972 Olympic trials Nike “moon shoes” were introduced featuring the new waffle sole. Along with these new shoes, t-shirts wer... ... middle of paper ... ... It has a relatively high price to earnings ratio at 19.89, which means it has the possibility of strong growth with little risk. With the continued growth of the company worldwide and the number of international athletes signing with Nike the revenue expectations are only going to grow. I recommend buying shares of Nike, because of its expected growth and low risk, and for those who already have the stock it’s a safe hold for the future. Bibliography Brigham, Eugene F., and Joel F. Houston. Fundamentals of Financial Management. 11th ed. Willard, OH: R.R. Donnelley, 2007. 116 & 122. "Company Overview." Thomson One Business School Edition. 8 May 2007 . “Nike, Inc.” Nikebiz. 6 May 2007. "Yahoo Finance." Yahoo. 8 May 2007 .

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