Another strength of Nike is that it is a global brand and its logo i.e. Nike's mission is complex. Nike's sales and earnings outpaced Wall Street estimates FY 06. The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel (Ferguson, 1996a, p. 1671). The overwhelming majority of the Finally, I offer a brief analysis of Nike's Important Financial ratios. Nike earned more money in 1995 than in 1994 using the figures in the income statement; this was due to its high sales, an increase of 25.63% compared with 1994 sales. And read the PDF documents on your computer and mobile device. Nike's shares traded at over $72 per share, and its market capitalization was valued at over US$114.5 billion in October 2018. As evident from the analysis of Nike's financial performance, the company's annual net income is in decline due to the increased costs of labour, production, development, and other internal processes. Download for your device. stockholders' equity $10,688 $9,870 $ %. Nike's headquarters are in Beaverton, Oregon; however, virtually all of its production takes place outside of the United States. Here we discuss the introduction and practical example of liquidity ratio analysis, trend analysis, rate of return analysis along with a detailed explanation and downloadable excel template. Nike has the annual revenue of $36.4 billion in financial year 2018 with a market capitalization of $120.3 billion and 11000 stores worldwide. NIKE,INC Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions): $3,241 4,838 Accounts receivable at May 31, 2016 Inventories at May 31, 2016 Total assets at May 31, 2016 Stockholders' equity at May 31, 2016 21,379 12,258 1. Abstract. See NIKE, Inc. (NKE) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. The company. The Nike VRIO Analysis shows that the financial resources of Nike are highly valuable as these help in investing into external opportunities that arise. Company Name: Nike, Inc. Industry (SIC) 3021 - Rubber and Plastics Footwear: Latest report: 11/30/2021 (filed 1/06/2022) Revenue: $46,306 million (ranked #1 out of 24 companies in the industry) . Listed below is a copy of Nike's company philosophy. For the fiscal year 2018, Nike reported earnings of US$1.933 billion, with an annual revenue of US$36.397 billion, an increase of 6.0% over the previous fiscal cycle. We have worked on this research that could help us to evaluate Nike corporation quickly and going through its annual reports that help the investors to evaluate the company easily and in this research its shows what is Nike organization and the financial ratios that I used to analyze the company by using its annual reports such as income statement and balance sheet. The overwhelming majority of the company's products are produced in low-wage, developing economies. The net result for the period of deducting operating expenses from operating revenues. Ben Johnson Bethany College Abstract This paper is about the Financial Analysis of Nike Inc., to determine its financial strengths and weaknesses in the stock market. International presence - Nike has expanded internationally fast. Nike Current Ratio: Nike's current ratio ranged from 2.1 to 2.93 over the last five years. You can go about it in a similar way as is done for a finance and accounting case study. The financial performance of Nike has evaluated using methods of Horizontal analysis, vertical analysis tends analysis and Find the latest analyst research for Nike, Inc. Common Stock (NKE) at Nasdaq.com. For solving any Phil Knight CEO at Nike--1983 case, Financial Analysis is of extreme importance. This is unfavorable to Nike as it will attract few investors in financing them. You can also go through our other suggested articles to learn more -. Get Access Check Writing Quality Job posted 4 hours ago - Nike is hiring now for a Full-Time Enterprise Performance Management Director - Financial Planning & Analysis Business Product Owner in Beaverton, OR. Experience in working with office (MS Excel & powerpoint). Financial Planning & Analysis Business Product Owner job in Beaverton at Nike. The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel. On the attached Excel workbook, a look at Under Armour and Nike can be found. These also help Nike in combating external threats. This research develops a critical financial analysis of Nike, Inc. Nike and Puma are the two most identical competitors in the international market, as being similar in product lines and business model (MarketLine 2015). The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel. It operates mainly in the Americas . Financial ratios and metrics for Nike, Inc. (NKE). This compared to the industry average of 25.69. combined, will be roughly the size of NIKE. Under Armour And Nike: Financial Analysis. The quick ratio of 1.43 is above the industry average of 1.17. Income statement item. Nike Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The sensitivity analysis revealed that Nike was undervalued at a discount rates below 11.17%, when we calculated the WACC our solution was 9.87%. Ten years of annual and quarterly financial ratios and margins for analysis of NIKE (NKE). Other products include apparel and accessories. Excluding the revenue from Converse, Nike's revenue was . For the diluted shares, it is at 0.957and the value of the shares is low. Nike Inc. operating income as a percentage of revenues increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021 Long-term liabilities 1,079 973 %. Get similar jobs sent to your email . Previous Close. The first look at these two companies is in . That financial statement includes balance sheet, income statement and cash flow statement. Indicate its 3 major categories and their total dollars amounts for the current year. . Adidas in 2018 had a ratio of 51.62. 107.46. The market competitors have a high value of shares than Nike. Economic Analysis 6 f Nike has done very well economically. Five-Year Trend Table of Financial Ratios As Provided by Mergent Online Ratio 2004 2003 2002 2001 2000 Industry Avg Return on Equity (%) 19.78 18.55 17.41 16.88 18.47 13.70 Return on Assets (%) 11.98 11.02 10.37 10.13 9.89 7.90 Its gross profit for the same period was $14,607 million. The logo of Nike is instantly recognized by people anywhere in the world. Aggregate accruals deriving measures of the accrual component of Nike Inc. earnings. BEAVERTON, Ore., June 25, 2020 - NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2020 fourth quarter and full year ended May 31, 2020. The Tax Act offset it revenue growth as Nike net income of $1.9 billion as a result of 54% decrease as compared to previous FY 2017. Vertical Integration Example. Apply today at CareerBuilder! Determine the . The quick ratio measures a company's ability to meet its . Income before income taxes. 9 Technical Analysis In the last Year Support level 76 dollars per share Resistance level approximately 92 dollars a share Last 5 years Support level at 39 dollars a share 10 Technical Analysis Continued In line with its 200 day moving average Has tended to less volatility over the last 2-3 years 11 Complete the vertical analysis of the balance sheet data for Nike for 2007. Nike was, is, and will always be a company . Minimum of 3 years' experience in financial planning, analysis and reporting. It is expected of them to continue to do well this year since the Olympics is taking place once again. Create Job Alert. However, like many brands, it has both strengths and weaknesses, and faces obstacles it must rise above in order to maintain its success. (Round all of the percentages to 1 decimal place, e.g. Find the latest Financials data for Nike, Inc. Common Stock (NKE) at Nasdaq.com. According to the VRIO Analysis of Nike, its local food products are a valuable resource as these are highly differentiated. Nike is a global company engaged in the design, development, marketing and distribution of athletic footwear and equipment. Fourth quarter reported revenues were $12.3 billion, up 96 percent compared to prior year and increasing 21 percent compared to the fourth quarter of 2019. 06/24/2021 BEAVERTON, Ore.-- (BUSINESS WIRE)-- NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021. Ten years of annual and quarterly financial statements and annual report data for NIKE (NKE). higher the current ratio, the more capable the company is of paying its obligations. Includes annual, quarterly and trailing numbers with full history and charts. It is also considered a market leader, owing to the highest market share in the global sportswear industry. This information is designed to assist a potential investor. Nike Swot Analysis: Strengths. 12.5.) Once again it is clear from the above calculation provided in this financial analysis assignment that Nike Inc. cash flow remains positive even after deducting all expenses which mean the company continues to save funds after its operations and business. For the full year, the company reported sales was USD 46,710 million compared to USD 44,538 million. Figure 3: Financial performance 2014 in comparison - Adidas, Nike and Puma (EUR in mill) illustration not visible in this excerpt. 106.19. Data Source: United States Securities and Exchange Commission. It has a workforce of 38,000 people on average. Financial Statement Analysis: NIKE Analysis Student's Name Institution Abstract The paper looks at Nike Inc has a formidable company to invest in. According to the most recent Nike financial report, the company produced $4.0 billion in revenue in 2021. Nike took a big hit in their net income in 2018 which caused their ratio to go down severely. Free Cash Flow = (27,799 - 15,353 - 5,735 - 0 - 5,865) = 846. Current liabilities $2,584 $2,612 $ %. Description. Nike Total Assets are projected to increase significantly based on the last few years of reporting. Add Fundamental Description Nike Financial Statement Analysis Prepare an eight-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on the financial statements of your chosen company: Provide a background of the firm, industry, economy, and outlook for the future. Announces First Quarter Fiscal 2023 Earnings and Conference Call Income statements, balance sheets, cash flow statements and key ratios. The gross profit for 1995 was also higher than 1994 with a margin of 39.82% compared with the 1994 margin of 39.27%. This research developed a critical financial analysis of Nike, Inc. The following is a five-year trend table for Nike, Inc. In the below document, a more in depth financial performance can be found. Fourth quarter reported revenues were $6.3 billion, declining from prior year as the majority of NIKE-owned and partner stores in North America, EMEA and APLA were closed due to The financial analysis Nike show that the company did very well and most of the statement represents that company has a strong position in liquidity and profitability however the ratio analysis. Its net income also rose by 13% and diluted Earnings P er Share by 16% to $2.51. Which financial statement measures the financial position f a company? NIKE, INC. : Forcasts, revenue, earnings, analysts expectations, ratios for NIKE, INC. Stock | NKE | US6541061031 (2020) Annual reports View the Nike annual report 2021 below. Additionally, in 2021, the company's digital sales climbed by 59 %, with a gross margin of 45.6 % (Harvey, 2020). Trend analysis works best with five years of ratios. Financial analysis and reporting help to answer a host of vital questions on all aspects of your company's financial activities, giving both internal and external stakeholders an accurate, comprehensive snapshot of the strategic as well as operational metrics they need to make decisions and take informed action. It is having more than 73000 employees. Nike, Inc. (NKE) financial analysis and rating Comparison analysis based on SEC data. Nike's revenues in 2007 reached $16,325.9 million, the cost of sales reached $9,165.4 million, leading to a net income of $1,491.5 million in 2007. Nike has a Price to Book (MRQ) ratio of 3.97, while the industry Nike competes in has a ratio of 3.96. The deeper analysis conducts ratio analysis comparing with Nike's biggest market competitor Adidas. Financial reporting quality relates to the accuracy with which Nike Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows. Example of Confirmation Bias. In reviewing each of Nike's financial ratios, I first start with defining the financial ratio. Operating income. Such a huge market capitalisation has led Nike to have P/E ratio of 25.56 which is lower than the industry (textile - footwear. Its revenues saw 6% growth over 2016 rising to $34.4 billion in 2017. . Use Adobe Acrobat Reader and Liquid Mode for best reading experience. Created by Bill Bowerman and Phil Knight, Nike has become one of the world's largest athletic apparel suppliers and today markets it product under its own brand name which includes Nike Pro, Nike Golf, Nike Skateboarding and the infamous Nike Air Jordan. Fiscal year is June - May. The past year's Total Assets were at 40.32 Billion. A Financial Ratio Quarterly Trend Analysis of Nike, Inc. Stock Symbol: NKE Listed on the New York Stock Exchange In Partial Fulfillment of the Requirements of the Course: FIN 6406 Report Completed By: 1. These two companies will be looked at in order to determine which would be a better company to invest in. NIKE, Inc. 5. The past year's Long Term Debt to Equity was at 0.58. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. There was also an increase in the gross profit margin. Volume (Avg) 7.76M (5.62M) . This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. Download this and previous annual reports by simply selecting the year. Ability to work collaboratively within a large organization. This won't look great to creditors and is not a good look for potential investors. Nike is one of the world's most recognizable brands, known for its quality products and powerful air of affluence and social status. Nike has a PE ratio of common shares at 0.02218; this is a low value for the company as it is below. 5) For building strategies and . This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. Masters degree in Economics, Finance or business or equal through experience. The third step of solving the Phil Knight CEO at Nike--1983 Case Study is Phil Knight CEO at Nike--1983 Financial Analysis. If the increase in value of shares is a benchmark of performance for managers, Nike's performance is unimpressive. SWOT Analysis of Nike Conclusion 2021: As a whole, Nike is a leading premium footwear and apparel brand with a global presence in more than 170 countries. The financial information for Nike is discussed below. In 2018 Nike had a times-interest-earned ratio of 23.10. Financial position: Nike has a strong financial base. At the end of 2012 the company had an estimated net worth of $15.9 Billion had over Read More Total liabilities &. Nike's sales reached $15 billion and its earnings per share were up 18%.Over the past 5 years, Nike's earnings per share on compounded rate were up 20%, gross margins averaged 42% and in the past year, Nike delivered 44% margins in a period of rising costs. Analysis Options Ownership Company History Related Open. Source: own table, data drawn from Thomson One Banker (2015) Market transitions to direct distribution in AGD and strong growth in the United States pushed revenue for Converse to $1.8 billion. Any estimate below the prescribed discount rate means the stock is undervalued, therefore, it is undervalued and this implies that Nike is a buy stock. financial analysiscash and equivalentscash and equivalents represent cash and shortterm, highly liquid investments with maturities of three months or less at date of purchase.inventory valuationinventories are stated at lower of cost or market and valued on a firstin, firstout ("fifo") or moving average cost basis.property, plant and equipment Nike Leads the Industry of. Nike Functional Analysis Nike Functional Analysis Introduction Nike's supply chain provides a clear view of the extent of the global nature of the company. The income statement of Nike in recent 5 years are selected and analyzed, of which the horizontal analysis is based on the last two years, while the trend analysis is based on the data of the last five years. The current ratio, while not a major strength, shows that Nike is inline with the industry concerning ease of converting assets to cash to cover short-term obligations. The second ratio is calculated as net income divided by the total assets, and it tells how much is earned in total assets of net income (Almani and Nobanee, 2020). For the year ending March 31, 2020, Nike's total Debt is worth $17.696 billion, consisting of $8.284 billion short-term debt accounting to 46.85% and $9.406 billion of long term debts amounting to 53.15%. WE ARE ABOUT DREAMS. Nike SWOT Analysis (2021) Apr 5, 2021 by Brandon Gaille. In the fiscal year 2017, Nike achieved record growth in revenues and earnings per share despite continuing foreign currency headwinds. The paper conducts an extensive business analysis of the company in order to ascertain its current placement within the stock markets. Nike's revenues for the year ended May 31 were $30,601, a $2802 million increase from the previous year. Print 1. The headquarters of the company is in Beaverton, Oregon. Add Fundamental Nike reported a 70 percent 12 increase in earnings per share (EPS) from the prior year to $0.90. Nike's strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. Nike. Net sales for the fiscal year . According to Yahoo Finance ( 2016), Nike has a market capitalisation of $85.14 billion whereas its competitors such as Adidas (32.63) puma ( 3.68) ralph lauren (8.01) JC Penny ( 2.62). Experience with TM1 Cognos & SAP (or similar systems) is a plus. Fixed Costs Example. The purpose of this paper is to provide investors with comprehensive information on Nike, its financial health and activities, its strength and weaknesses, and whether Nike creates value to its shareholders. Despite this, Nike has faced several threats, mainly related to a significant drop . measures a company's ability to pay short-term obligations. The ratio analysis concentrates on . Table 1: Solvency and profitability ratios. NIKE, INC. The current year Calculated Tax Rate is expected to grow to 9.33, whereas Accounts Payable Turnover is forecasted to decline to 14.61. 0.00%. An essay or paper on Financial Analysis of Nike. The third ratio is calculated as. The overwhelming majority of the company's products are produced in low-wage, developing economies. Nike's financial statement was analysed and studied thoroughly to understand Nike`s financial performance. This research developed a critical financial analysis of Nike, Inc. The Swoosh. TTM Millions Export The current year Current Assets is expected to grow to about 30.4 B, whereas Accounts Payable is forecasted to decline to about 2.7 B. The data presented includes gross figures as well as ratio analysis data. NKE Financial Summary NIKE, Inc. reported earnings results for the full year ended May 31, 2022. They continuously grown throughout the years with huge bursts with the new innovative trends that they released, or otherwise on a steady pace. Next, I supply the financial formula for calculating the specific ratio. 6. Our company's current ratio is 2.26, just slightly below the industry average of 2.28. The footwear industry averaged about 14.25%, while Nike's growth in stock was 10.48%. Analyze the short term liquidity of the . Buy NKE Overview Financials Statistics Forecast Dividends Profile Chart Income Balance Sheet Cash Flow Ratios Annual Quarterly Trailing Income Statement ( Annual) Financials in millions USD. Balance-Sheet-Based Accruals Ratio. Financial Ratio Analysis. Total stockholders' equity 7,025 6,285 %. Since the brand is currently looking to expand the scale of production, it is likely to face an even more significant decrease in net income.