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. NIKE, INC. The Nike VRIO Analysis shows that the financial resources of Nike are highly valuable as these help in investing into external opportunities that arise. The logo of Nike is instantly recognized by people anywhere in the world. 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. Nike has a PE ratio of common shares at 0.02218; this is a low value for the company as it is below. 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. This is unfavorable to Nike as it will attract few investors in financing them. The past year's Total Assets were at 40.32 Billion. Nike Current Ratio: Nike's current ratio ranged from 2.1 to 2.93 over the last five years. You can also go through our other suggested articles to learn more -. 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. Source: own table, data drawn from Thomson One Banker (2015) It is also considered a market leader, owing to the highest market share in the global sportswear industry. 107.46. 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. Financial Planning & Analysis Business Product Owner job in Beaverton at Nike. measures a company's ability to pay short-term obligations. 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%. This information is designed to assist a potential investor. Analysis Options Ownership Company History Related Open. Nike Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. This compared to the industry average of 25.69. 106.19. View the Nike annual report 2021 below. 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. However, like many brands, it has both strengths and weaknesses, and faces obstacles it must rise above in order to maintain its success. Next, I supply the financial formula for calculating the specific ratio. The overwhelming majority of the company's products are produced in low-wage, developing economies. If the increase in value of shares is a benchmark of performance for managers, Nike's performance is unimpressive. Financial ratios and metrics for Nike, Inc. (NKE). Get similar jobs sent to your email . NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021 Nike's headquarters are in Beaverton, Oregon; however, virtually all of its production takes place outside of the United States. Financial Statement Analysis: NIKE Analysis Student's Name Institution Abstract The paper looks at Nike Inc has a formidable company to invest in. The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel. Operating income. (2020) Annual reports Income before income taxes. Total stockholders' equity 7,025 6,285 %. Nike is one of the world's most recognizable brands, known for its quality products and powerful air of affluence and social status. Finally, I offer a brief analysis of Nike's Important Financial ratios. Total liabilities &. WE ARE ABOUT DREAMS. Add Fundamental And read the PDF documents on your computer and mobile device. Nike Swot Analysis: Strengths. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. Determine the . Market transitions to direct distribution in AGD and strong growth in the United States pushed revenue for Converse to $1.8 billion. The paper conducts an extensive business analysis of the company in order to ascertain its current placement within the stock markets. Complete the vertical analysis of the balance sheet data for Nike for 2007. See NIKE, Inc. (NKE) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. The quick ratio of 1.43 is above the industry average of 1.17. This research develops a critical financial analysis of Nike, Inc. Create Job Alert. Description. The quick ratio measures a company's ability to meet its . NIKE, INC. : Forcasts, revenue, earnings, analysts expectations, ratios for NIKE, INC. Stock | NKE | US6541061031 An essay or paper on Financial Analysis of Nike. Nike. Another strength of Nike is that it is a global brand and its logo i.e. Ten years of annual and quarterly financial statements and annual report data for NIKE (NKE). 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) . Nike is a global company engaged in the design, development, marketing and distribution of athletic footwear and equipment. Download this and previous annual reports by simply selecting the year. The current year Calculated Tax Rate is expected to grow to 9.33, whereas Accounts Payable Turnover is forecasted to decline to 14.61. Fixed Costs Example. On the attached Excel workbook, a look at Under Armour and Nike can be found. This research developed a critical financial analysis of Nike, Inc. Experience in working with office (MS Excel & powerpoint). 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. 5. In the fiscal year 2017, Nike achieved record growth in revenues and earnings per share despite continuing foreign currency headwinds. 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%. The ratio analysis concentrates on . 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. NKE Financial Summary NIKE, Inc. reported earnings results for the full year ended May 31, 2022. For solving any Phil Knight CEO at Nike--1983 case, Financial Analysis is of extreme importance. The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel (Ferguson, 1996a, p. 1671). Find the latest analyst research for Nike, Inc. Common Stock (NKE) at Nasdaq.com. 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. 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 (Round all of the percentages to 1 decimal place, e.g. Nike and Puma are the two most identical competitors in the international market, as being similar in product lines and business model (MarketLine 2015). Example of Confirmation Bias. Listed below is a copy of Nike's company philosophy. 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. In 2018 Nike had a times-interest-earned ratio of 23.10. Nike Inc. operating income as a percentage of revenues increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. 0.00%. Nike was, is, and will always be a company . They continuously grown throughout the years with huge bursts with the new innovative trends that they released, or otherwise on a steady pace. Despite this, Nike has faced several threats, mainly related to a significant drop . Experience with TM1 Cognos & SAP (or similar systems) is a plus. The company, headquartered in Beaverton, Oregon, designs and markets globally footwear, apparel, and accessories for athletic and leisure apparel. Excluding the revenue from Converse, Nike's revenue was . 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. Nike's shares traded at over $72 per share, and its market capitalization was valued at over US$114.5 billion in October 2018. Income statements, balance sheets, cash flow statements and key ratios. Apply today at CareerBuilder! The footwear industry averaged about 14.25%, while Nike's growth in stock was 10.48%. Our company's current ratio is 2.26, just slightly below the industry average of 2.28. 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. 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. For the diluted shares, it is at 0.957and the value of the shares is low. It is expected of them to continue to do well this year since the Olympics is taking place once again. 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. The third ratio is calculated as. Additionally, in 2021, the company's digital sales climbed by 59 %, with a gross margin of 45.6 % (Harvey, 2020). Balance-Sheet-Based Accruals Ratio. There was also an increase in the gross profit margin. Adidas in 2018 had a ratio of 51.62. 5) For building strategies and . 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. You can go about it in a similar way as is done for a finance and accounting case study. The first look at these two companies is in . Nike Leads the Industry of. Data Source: United States Securities and Exchange Commission. Previous Close. For the full year, the company reported sales was USD 46,710 million compared to USD 44,538 million. Which financial statement measures the financial position f a company? The company. The market competitors have a high value of shares than Nike. Long-term liabilities 1,079 973 %. 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). 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. Nike's revenues for the year ended May 31 were $30,601, a $2802 million increase from the previous year. combined, will be roughly the size of NIKE. The net result for the period of deducting operating expenses from operating revenues. 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. 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. Use Adobe Acrobat Reader and Liquid Mode for best reading experience. This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. Fiscal year is June - May. 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. Under Armour And Nike: Financial Analysis. Includes annual, quarterly and trailing numbers with full history and charts. Print 1. 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. The financial performance of Nike has evaluated using methods of Horizontal analysis, vertical analysis tends analysis and 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 Add Fundamental Table 1: Solvency and profitability ratios. The overwhelming majority of the company's products are produced in low-wage, developing economies. 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. Minimum of 3 years' experience in financial planning, analysis and reporting. Current liabilities $2,584 $2,612 $ %. Analyze the short term liquidity of the . 6. Nike's mission is complex. Nike's financial statement was analysed and studied thoroughly to understand Nike`s financial performance. higher the current ratio, the more capable the company is of paying its obligations. Volume (Avg) 7.76M (5.62M) . Financial position: Nike has a strong financial base. These also help Nike in combating external threats. Its revenues saw 6% growth over 2016 rising to $34.4 billion in 2017. 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. 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. 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. According to the VRIO Analysis of Nike, its local food products are a valuable resource as these are highly differentiated. Vertical Integration Example. Net sales for the fiscal year . 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. NIKE, Inc. Nike took a big hit in their net income in 2018 which caused their ratio to go down severely. Trend analysis works best with five years of ratios. This won't look great to creditors and is not a good look for potential investors. In reviewing each of Nike's financial ratios, I first start with defining the financial ratio. 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). 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. That financial statement includes balance sheet, income statement and cash flow statement. International presence - Nike has expanded internationally fast. Its gross profit for the same period was $14,607 million. Its net income also rose by 13% and diluted Earnings P er Share by 16% to $2.51. 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 has the annual revenue of $36.4 billion in financial year 2018 with a market capitalization of $120.3 billion and 11000 stores worldwide. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. Such a huge market capitalisation has led Nike to have P/E ratio of 25.56 which is lower than the industry (textile - footwear. Find the latest Financials data for Nike, Inc. Common Stock (NKE) at Nasdaq.com. Economic Analysis 6 f Nike has done very well economically. 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. Nike has a Price to Book (MRQ) ratio of 3.97, while the industry Nike competes in has a ratio of 3.96. Income statement item. Nike Total Assets are projected to increase significantly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.58. It is having more than 73000 employees. Aggregate accruals deriving measures of the accrual component of Nike Inc. earnings. In the below document, a more in depth financial performance can be found. The overwhelming majority of the The deeper analysis conducts ratio analysis comparing with Nike's biggest market competitor Adidas. Nike SWOT Analysis (2021) Apr 5, 2021 by Brandon Gaille. The Swoosh. Announces First Quarter Fiscal 2023 Earnings and Conference Call At the end of 2012 the company had an estimated net worth of $15.9 Billion had over Read More stockholders' equity $10,688 $9,870 $ %. Figure 3: Financial performance 2014 in comparison - Adidas, Nike and Puma (EUR in mill) illustration not visible in this excerpt. The gross profit for 1995 was also higher than 1994 with a margin of 39.82% compared with the 1994 margin of 39.27%. It has a workforce of 38,000 people on average. Get Access Check Writing Quality Download for your device. Nike's sales and earnings outpaced Wall Street estimates FY 06. The third step of solving the Phil Knight CEO at Nike--1983 Case Study is Phil Knight CEO at Nike--1983 Financial Analysis. The following is a five-year trend table for Nike, Inc. According to the most recent Nike financial report, the company produced $4.0 billion in revenue in 2021. Free Cash Flow = (27,799 - 15,353 - 5,735 - 0 - 5,865) = 846. 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. 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. Nike reported a 70 percent 12 increase in earnings per share (EPS) from the prior year to $0.90. 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 Ten years of annual and quarterly financial ratios and margins for analysis of NIKE (NKE). These two companies will be looked at in order to determine which would be a better company to invest in. This research developed a critical financial analysis of Nike, Inc. 12.5.) It operates mainly in the Americas . The financial information for Nike is discussed below. Abstract. Nike, Inc. (NKE) financial analysis and rating Comparison analysis based on SEC data. . The data presented includes gross figures as well as ratio analysis data. . The headquarters of the company is in Beaverton, Oregon. 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. Ability to work collaboratively within a large organization. Indicate its 3 major categories and their total dollars amounts for the current year. Financial Ratio Analysis. Other products include apparel and accessories. TTM Millions Export Masters degree in Economics, Finance or business or equal through experience. 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.