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NIKE
A FINANCIAL EVALUATION
BY PAWAN JANGID & PIYUSH KUMAR
Company Profile
• Nike began as blue ribbon sports in 1967
• Primarily designs, develops markets and sells athletic footwear,
apparel, equipment and services.
• The company was founded by Bill Bowerman and Phil Knight
Largest seller of athletic sportswear in the world.
Online sales presence via Nike.com and Converse.com
US STORES INT’l STORES
339 592
Key Financial
Ratios
A Look Into How Nike’s Uses Capital
MVA (2015) EVA (2015)
71.3B 2.28B
Return on Invested Capital
2013 2014 2015
17.6% 19.1% 21.3%
Using information from 2015 financial reports.
Projections
INCOME STATEMENT*
Revenues 33,279
Cost of Sales 17,981
Total Selling and Admin Expense 10,758
EBIT 4,540
Interest Expense (net) 30
Taxes 1,001
Net Income 3,509
Capital Structure & Costs
Capital Structure
2013 2014 2015
Debt 11.1% 11.3% 9%
Equity 88.9% 88.7% 91%
Capital Structure & Costs
Capital Structure
Weighted Average Cost of Capital Calculation
WACC 6.5%
Risk-free rate 1.47%
Default Premium 0.78%
Cost of Equity 6.9%
JUST DO I
T
THANK
YOU

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nike pawan.pptx

  • 1. NIKE A FINANCIAL EVALUATION BY PAWAN JANGID & PIYUSH KUMAR
  • 2. Company Profile • Nike began as blue ribbon sports in 1967 • Primarily designs, develops markets and sells athletic footwear, apparel, equipment and services. • The company was founded by Bill Bowerman and Phil Knight
  • 3. Largest seller of athletic sportswear in the world. Online sales presence via Nike.com and Converse.com US STORES INT’l STORES 339 592
  • 4. Key Financial Ratios A Look Into How Nike’s Uses Capital MVA (2015) EVA (2015) 71.3B 2.28B Return on Invested Capital 2013 2014 2015 17.6% 19.1% 21.3% Using information from 2015 financial reports.
  • 5. Projections INCOME STATEMENT* Revenues 33,279 Cost of Sales 17,981 Total Selling and Admin Expense 10,758 EBIT 4,540 Interest Expense (net) 30 Taxes 1,001 Net Income 3,509
  • 6. Capital Structure & Costs Capital Structure 2013 2014 2015 Debt 11.1% 11.3% 9% Equity 88.9% 88.7% 91%
  • 7. Capital Structure & Costs Capital Structure Weighted Average Cost of Capital Calculation WACC 6.5% Risk-free rate 1.47% Default Premium 0.78% Cost of Equity 6.9%