Nike Financial Analysis Investing in a company has certainly changed over the years. Financial information is literally at one's fingertips via the internet. In today's fast paced corporate environment companies are under tremendous scrutiny to maintain their edge. The company I am evaluating is NIKE. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. This information is designed to assist a potential investor. Nike's mission is complex. Listed below is a copy of Nike's company philosophy. Company Philosophy: WE ARE ABOUT DREAMS. Nike was, is, and will always be a company driven by certain key philosophies. What are they? First and foremost, we are a company dedicated to innovation and the passion to create great product. From Bowerman's Waffle Trainer to the Tour Accuracy golf ball, we make every effort to take consumers where they want to go before they realize they want to go there. WE ARE ABOUT THE CONSUMER. The consumer rules the roost. They make the important decisions. I answer to them, as we all do. The opinions of Wall Street analysts and media pundits are really just derivatives of our relationship with our consumers. When the young at heart seek out our products, when they respond to our messages and believe in what we stand for, when our relationship with consumers is healthy, that's when we grow. Even so, gaining true understanding of our consumers, and thereby being able to deliver meaningful innovation to them, is a huge challenge. It's not the demographics that change; it's the deliverables. Ours is a constantly moving target. Technology continues to increase the pace and volume of options in all of our lives. ... ... middle of paper ... ...59 This ratio must appear on the face of a company's income statement. Nike (EPS) is up from 1.35 in 2008. This is another sign of a strong company, although it is not uncommon for a company to have a down year. These ratios show the following: · Nike has a very good ability to pay current liabilities. This was evident in the current ratio and the acid test. · Nike has an excellent ability to pay short term and long-term debt. This was proven in the debt ratio and times-interest-earned ratio. Nike is a solid company in 2009, from a profitability stand point. This was apparent in the Rates of return on sales, assets, and common stockholder equity. I would recommend Nike to a potential investor because of the reasons listed above, in this analysis. I would also recommend a thorough analysis of the Industry by researching at least tow of Nike's closest competitors.
The Company that I will conduct a financial research report is Footlocker Incorporated. I choose Footlocker Inc., because I am an assistant manager with the company, and have experience dealing with Footlocker’s stock, 401k retirement plan’s and choose the company to conduct financial research on because it would give me a broader insight on how the company that I am employed by conducts certain types of business structure, as well as how the company operates on a larger scale, how the company is traded and how the structure of Footlocker is organized. Since the inception of the company in technical terms Footlocker Inc., was originally established in 1879 as the Great 5 cent store in Utica, New York by Frank Woolworth. ("Funding universe-footlocker,
Currently, Nike is the world’s leading innovator in athlete footwear, apparel, equipment and accessories. The company has had many successes since its’ beginning such as being named the No. 1 Most Innovative Company in Fast Company magazine’s annual ranking of the world’s top 50 innovators in February 2013, being awarded top honours by the Corporate Register Reporting Awards (CRRA) for Innovation in Reporting and Best Overall Report in April 2013 and also having Nike VP of Sustainable Business & Innovation, Hannah Jones, honoured as one of the three recipients of the 2013 C.K. Prahalad Awards, a prestigious award giving to companies, individuals and...
Nike’s biggest competitor is Adidas. However, when comparing both firms’ current ratio, which measures a companies capability to pay their debt with current resources over the next 12 months, Nike’s
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
The name Nike is derived from the Greek goddess of victory which is exactly what Nike has over its competitors. Nike has been around for 53 years starting in 1964 and is the leading revenue sports goods company in the world with 34.35 billion US dollars in revenue in 2017. It is not only the biggest sports brand but also one of the three largest apparel companies in the world along with Christian Dior and Zara. It is such a prominent brand that almost everyone has used a Nike product in their lifetime. CEO Mark Parker wrote, “like athletes all over the globe, Nike’s future holds nothing but limitless potential”. Everyone is confident in Nike and their ability to continue creating and producing high quality products that everyone can enjoy.
There are a few positive variables showing the future wellbeing of the organization. One proportion that shows the positive monetary wellbeing is the speedy proportion. The fast proportion, otherwise called the basic analysis proportion, is a liquidity estimation that measures the organization's capacity to pay off here and now commitments without depending discounted of inventories (Brigham, Daves, Ehrhardt, 2013). Under Armor's snappy proportion for as long as three years was 1.29 for 2013, 2.05 for 2014, and 1.16 for 2015. For examination, Nike's present proportion for 2015 was 1.47 and Adidas current proportion for 2014 was 0.92. The accompanying diagram shows the yearly snappy proportion and the contender
The creators of Nike Phil Knight and Bill Bowerman began in 1964, they used be name Blue Ribbon Sports. Little be known an athlete and track coach at University of Oregon would be on their way to create one of the most well known athletic brands today. At first, they began as an athletic Japanese shoe supplier and then eventually became what we know now as Nike. To this day they are the main supplier of athletic clothing, shoes, accessories today! Nike is one of the top sponsors for athletes, to name a few Michael Jordan, LeBron James, and Kobe Bryant are all phenomenal basketball players. Although Nike continues to revolutionize athletic wear and staying as number one on the leader board, such achievement wasn’t always there
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Financial statements are a vital factor of any business organization; they show where a company’s money came from, where it went, and where it is now, according to Securities and Exchange Commission website (2008). In addition, four main financial statements consist of the balance sheet, income statement, cash flow statement, and statement of shareholders’ equity. These four financial statements will be evaluated from Nike Inc. and more in depth information will be included from information on the previous paper which will be link to the working capital strategies. Furthermore, a detail working capital recommendation to senior management will be included and the impact of Nike Inc. revenue increase of their working capital.
...This is a major part of Nike's corporate culture, which then trickles down to Nike's management styles. Nike lets manager's keep lines of communication open and lets them determine their own decision making. The company also offers their employees something called LifeTrek. This is a benefit and compensation program that gives their employees a sense caring and trust. THE FUTURE With the increase in competition and limit of growth the U.S. athletic shoe industry, Nike is still slated to be a major leader in the market. The advertising and innovative marketing in the industry should still leave it extremely competitive. The only problem that Nike worries about are customers becoming less brand-loyal and buying cheaper athletic shoe brands. Nike is trying to make the point that it is worth spending more money on better quality made shoe, than buying a cheap shoe that will only last a little while. One major area that brings unlimited opportunities to Nike is the international market. In the United Sates, there are 4 people for every pair of Nikes, France has 11, Japan has 50, and China has 11,821. These figures show that the greatest growth for Nike is overseas.
Our primary product focus is athletic footwear designed for specific-sport and/or leisure use(s). We also sell athletic apparel carrying the same trademarks and brand names as many of our footwear lines. Among our newer product offerings, we sell a line of performance equipment under the Nike brand name that includes sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. In addition, we utilize the following wholly-owned subsidiaries to sell additional sports-related merchandise and raw materials: Cole Haan Holdings Inc., Nike Team Sports, Inc., Nike IHM, Inc., and Bauer Nike Hockey Inc. Our most popular product categories include the following:
Kimi Ford, a portfolio manager at Northpoint Group, a mutual fund management firm is looking into investing in the stocks of Nike Inc. for the company that she’s in charge of. Her decisional criteria should be based on Nike’s financial reports and statements of 2001. There were several problems in Nike because of which the stock prices of the company were declining and also a third party gave their opinion based on if the investment is really worth it.
Nike Inc. is a very successful publicly traded sportswear and equipment company based in the United States. Nike is a multi-national and Fortune 500 company. It has reached achievements in their innovation in products that Nike has become one of the most recognized companies today and companies dream to have what Nike has created. The main headquarters for the company is in the Portland area near Beaverton, Oregon. Nike leads the world in supplying athletic apparel and shoes. Nike shows how devoted they are in the satisfaction of their customer’s needs that it shines upon their mission statement and encompasses their vision. Nike ensures to go far and
A portfolio manager, Kimi working for a large cap fund company called NorthPoint Group, had a difficult decision to make while looking at Nike Inc. financials: whether Kimi should buy Nike shares or not for the fund Group she was working for. Kimi needed to consider all aspects of Nike Inc. financial position. On July 28,2011 Nike Inc. held a analyst’s meeting to disclose their fiscal year 2001 as well as to revitalize the company who wasn’t performing well. Thus, the meeting showed that Nike Inc. experienced some difficulties during the past years. First, Nike Inc. revenues have reached a plateau since 1997 of $9 billion and its net income has decreased from $800 million to $520 million. Also, it showed that Nike Inc. market share for their US athletic shoes had decreased from 48% in 1997 to 42% in 2000, their supply chain systems wasn’t efficient enough and a strong dollar has drove the company’s profitability/revenue down.
Historically, Nike engineered and manufactured the sports shoes for athletes to compete and train in. The company's marketing strategies was aimed to sport shoes segment of market that in short period made products so attractive and desirable that they became a must have accessory to the large number of American people. The Nike popularity rapidly grew around the world. The people who would not take part in sport activities on regular basis choose to wear NIKE as company grew in to being part of...