Nike 2007 Financial Statement Comparision with Statement

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Compares Nike's 2207 Financial Statement with Industry Average with Graphs and Ratios...

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Nike 2007 Financial Statement Comparision with Statement

  1. 1. NIKE
  2. 2. History of NIKE Inc. <ul><li>Its name is derived from a winged Greek goddess. </li></ul><ul><li>“ Swoosh” logo designed by Caroline Davidson. </li></ul><ul><li>Is now one of the world’s top shoemaker that captures more than 20% of US athletic market. </li></ul><ul><li>Original name of Nike given by Phil was “Blue Ribbon Sports”. </li></ul><ul><li>With an agreement and handshake in 1964, they began importing Japanese brand Onitsuka Tiger running shoes. </li></ul><ul><li>By late 70’s, Nike had moved from $10million to $270million in sales. </li></ul><ul><li>In 1996, revenue increased to $6.74billion. Sales reached $12billion in 2000. </li></ul>
  3. 3. Footwear <ul><li>Running </li></ul><ul><li>Basketball </li></ul><ul><li>Soccer </li></ul><ul><li>Sport-inspired urban shoes </li></ul><ul><li>Children’s Shoes </li></ul>
  4. 4. Also Sells <ul><li>Apparels and Accessories </li></ul><ul><li>Athletic Bags </li></ul><ul><li>Offers Apparels for Licensed Sports Team </li></ul>
  5. 5. Sale of Performance Equip. under Nike Brand <ul><li>Bags </li></ul><ul><li>Socks </li></ul><ul><li>Sport Balls </li></ul><ul><li>Eyewear </li></ul><ul><li>Timepieces </li></ul><ul><li>Electronic Devices </li></ul><ul><li>Bats </li></ul><ul><li>Gloves </li></ul><ul><li>Protective Equipments </li></ul>
  6. 6. Provides Licenses to Produce and Sell <ul><li>Swimwear </li></ul><ul><li>Cycling Apparel </li></ul><ul><li>Children’s Clothing </li></ul><ul><li>School Supplies </li></ul><ul><li>Electronic Devices </li></ul><ul><li>Eyewear </li></ul><ul><li>Golf Accessories </li></ul><ul><li>Belts </li></ul>
  7. 7. <ul><li>The company sells its products to retail accounts, through its owned retail stores, and through a mix of independent distributors and licensees, as well as through Internet Web site, nikestore.com </li></ul>Sales Technique
  8. 8. Subsidiaries <ul><li>NIKE inc. has major four subsidiaries which are: </li></ul><ul><ul><li>Converse </li></ul></ul><ul><ul><li>Cole Haan Holdings </li></ul></ul><ul><ul><li>Nike Bauer Hockey </li></ul></ul><ul><ul><li>Hurley International </li></ul></ul>
  9. 9. Major announcements <ul><li>February 15, 2008 (Financial Wire) NIKE, Inc.'s (NYSE: NKE) board has declared a quarterly cash dividend of twenty three cents per share on the company's outstanding class A and class B common stock, payable April 1 shareholders of record at the close of business March 10. </li></ul><ul><li>NIKE and Phoenix Suns guard Steve Nash are releasing a new basketball shoe made with manufacturing scraps, called the Nike Trash Talk shoe. </li></ul><ul><li>Feb. 5 (Bloomberg) -- Nike Inc. put its Bauer hockey equipment unit up for sale, having failed to promote the brand. </li></ul>
  10. 10. Comparative Balance Sheet Acoount Heads 2007 2006 Increase/Decrease % Change Current Assets 8077 7359 718 9.76% Total Non current Assets 2612 2511 101 4.02% Total Assets 10689 9870 819 8.30% Current Liabilities 2584 2623 -39 -1.49% Total Non-current Liabilities 1079 961 118 12.28% Total Liabilities 3663 3584 79 2.20% Total Equity 7025 6285 740 11.77%
  11. 12. Comparative Income Statement Accounts 2007 2006 Increase/Decrease % Change Revenue 16326 14954 1372 9.17% COGS 9165 8368 797 9.52% Gross Profit 7161 6586 575 8.73% SG&A Expense 4759 4187 572 13.66% Depreciationa & Amortization 270 291 -21 -7.22% Operating Income 2132 2108 24 1.14% Nonoperating Income 68 32 36 112.50% Income Before Taxes 2200 2140 60 2.80% Income Taxes 708 750 -42 -5.60% Net Income After Taxes 1492 1390 102 7.34%
  12. 14. Financial Strength <ul><li>Current ratio </li></ul><ul><li>Quick Ratio </li></ul><ul><li>Total Debt to Equity Ratio </li></ul>
  13. 16. Overall Financial Strength <ul><li>Analysis of these ratios shows that they are in overall good standing concerning financial strength. </li></ul><ul><li>The company has a relatively low risk of not meeting their short term obligations. </li></ul>Current Ratio (2.32:1) Good Quick Ratio (3.11:1) Good Debt to Equity Ratio (0.08) Good
  14. 17. Efficiency <ul><li>Receivable Turnover </li></ul><ul><li>Inventory Turnover </li></ul><ul><li>Asset Turnover </li></ul>
  15. 19. Overall Efficiency <ul><li>Analysis of these ratios shows that they are in overall good standing concerning the efficiency. </li></ul>Receivable Turnover (6.93:1) Good Inventory Turnover (4.30:1) Good Asset Turnover (1.63) Good
  16. 20. Valuation Ratios <ul><li>Price to Earnings Ratio </li></ul><ul><li>Price to Sales Ratio </li></ul><ul><li>Price to Cash Flow Ratio </li></ul><ul><li>Price to Free Cash Flow Ratio </li></ul>
  17. 24. Dividends Ratio Analysis <ul><li>The higher dividend payout ratio compared to industrial average indicates that the company’s dividend payment ratio is well supported by its earnings. </li></ul><ul><li>However, the dividend yield ratio and dividend growth ratio is well below the industrial average. </li></ul>
  18. 25. 2007 2006 2005 2004 2003 2002 Dividends per Share - Common Stock Primary Issue    0.71    0.59    0.47    0.37    0.27    0.24 
  19. 26. Views <ul><li>In our view, Nike will increase its sales growth rate and its profit percent. The company might as well start new products. </li></ul><ul><li>The company is increasing its sales as well as revenue. So, it is profitable for company to expand its business as much as possible. </li></ul>
  20. 27. Citations <ul><li>Annual Report 2006,2007. </li></ul><ul><li>http://www.finance.google.com/finance </li></ul><ul><li>http://www.hoovers.com </li></ul><ul><li>http://www.nikebiz.com </li></ul><ul><li>http://investing.businessweek.com/ </li></ul><ul><li>http://shoes.about.com </li></ul>

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