Nike Financial Statement Analysis

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Nike Financial Statement Analysis INTRODUCTION In this research, I will analyse the financial statement of this company and some others part of this firm which help us to better understand how it works. I will explain what is its strengths and weaknesses and also who is its direct concurrences. In addition, I will describe the firm and its management. I will explain where this company come from and how this brand became so famous across the world in a short period of time. Firstly, Nike is an American company specialized in sportswear such as shoes or clothes, but also in all sports equipments. Bill Bowerman and Phil Knight were the founders of the company. Bill was an athletic coach in a famous university called “Oregon” while Phil was a student in accounting and was a foot runner during his spare time, in the 1970s. During a trip to Japan, they found a great athletic shoe with a new design and really cheap. They decided to import their item in the USA. At this moment, in 1966, this brand was known as Blue Ribbon Sports. The two founders spread their brand by making advertising everywhere which was difficult because Adidas, at this time, was the market leader. In 1967, Jeff Johnson merged with Bill and Phil. Jeff Johnson was already present in the sports market and knew many people in the world of sport. They opened the first shop in California, that was a great success and already the brand was wide spread. In 1972,they decide to change the name of the brand by Nike which is from the Greek goddess of victory, who is able to move really fast. Furthermore, Carolyn Davidson, a student in design at the university of Portland, made the simple logo of Nike, which is really eas... ... middle of paper ... ...or the first six months of 2008, about $ 194.4 million were provided by some investing activities. This number is smaller than the previous year, 2007, which was $ 389.9 million at the same period of time during the year. The main reason for this decreasing is due to the lower net maturities of short term investments. During the beginning of 2008, Nike has purchased about $ 4.8 million of shares common stock for $ 292.8 million. Until now, they purchased about $ 30 million share for $ 1. 426.9 million. Nike company made a status during the year 2006, which says they can purchase till $ 3 billion of shares per year. But this number can vary, it depends on the debts and benefice they made during the previous year. Finally, in 2007, Nike purchased more than 20% of the outstanding shares of UMBRO in Britain, which represent about $ 111.9 million.
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