This document analyzes the financial performance of Nike Inc. over 2013-2014. It includes a company description noting Nike was founded in 1964 and is now a global brand in sports apparel and equipment. The document then provides detailed financial analysis including ratio calculations for profitability, liquidity, debt management, cash flow and market performance. Key ratios show Nike's gross margin and returns on assets and equity increased slightly from 2013 to 2014, indicating improved profitability.
Nike's current mission is to inspire athletes worldwide. The document discusses Nike's history and success from its founding in 1964 as Blue Ribbon Sports to becoming the world's largest athletic shoe and apparel brand. It summarizes Nike's target markets, products, founders, diversification strategies, and use of technology in clothing.
Nike was founded in 1962 and is a major multinational corporation that designs and markets athletic footwear, apparel, and equipment. It has grown significantly over the years through strategic acquisitions and partnerships. Nike faces intense competition from companies like Adidas but maintains competitive advantages through innovative product design and large economies of scale. Going forward, Nike aims to continue growing its global brand and market share while also improving its social and environmental sustainability.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against developing mental illness and improve symptoms for those who already suffer from conditions like anxiety and depression.
The document provides a financial ratio analysis of Nike, Inc. (NKE) conducted by two students. It includes:
1) A brief background history of Nike and recent developments.
2) Analyses of Nike's profitability ratios from 2012-2013 which show improving returns and margins.
3) Analyses of Nike's financial stability ratios from 2012-2013 which show increasing working capital and debt coverage but also higher total debt levels.
4) A conclusion that Nike's shares may not be worth investing in due to an expensive price-to-earnings ratio above what conservative investors typically pay.
Nike's primary target market is active teens and young adults who enjoy high-quality sporting goods. Nike positions itself as the premier brand through sponsoring famous athletes and running prominent advertising campaigns. It dominates the $278 billion global sports apparel market with a 33% market share, distributing its premium-priced footwear and apparel worldwide through various retail channels.
Innovative Marketing & Communications at BurberryAlexandra Ashton
Burberry is a leading British luxury brand known for its iconic trench coats, trademark check pattern, and knight logo. The brand aims to appeal to a younger, fashion-forward audience while maintaining its heritage in luxury outerwear. Burberry uses innovative digital marketing strategies and celebrity endorsements to engage customers globally and reinforce its image of exclusive, prestigious British design. The company focuses on penetrating current luxury markets while also diversifying into new product categories and geographies.
The document provides a history of the Converse brand and Chuck Taylor All Star shoe. It discusses how the brand was founded in 1908 and introduced the All Star basketball shoe in 1917. Chuck Taylor became a salesman for Converse in 1921 and promoted the brand. Over 800 million pairs of Chucks have been sold. Converse produces various shoe lines and has expanded into clothing and accessories. It was purchased by Nike in 2003 who has adopted both fashion and performance strategies to grow the brand globally.
Disney- A Brand Management PerspectiveRohan Telang
The document discusses the brand Disney. It provides a brief history of Disney from its founding in 1923 through key milestones like Steamboat Willie in 1928 and opening of Disneyland in 1955. Disney's business segments are outlined including media networks, parks and resorts, studio entertainment, consumer products and interactive media. The mission, value proposition and positioning statements focus on providing magical, fun experiences for children and families. Key aspects of Disney's consistent, enduring and distinctive brand personality are also summarized.
Nike's current mission is to inspire athletes worldwide. The document discusses Nike's history and success from its founding in 1964 as Blue Ribbon Sports to becoming the world's largest athletic shoe and apparel brand. It summarizes Nike's target markets, products, founders, diversification strategies, and use of technology in clothing.
Nike was founded in 1962 and is a major multinational corporation that designs and markets athletic footwear, apparel, and equipment. It has grown significantly over the years through strategic acquisitions and partnerships. Nike faces intense competition from companies like Adidas but maintains competitive advantages through innovative product design and large economies of scale. Going forward, Nike aims to continue growing its global brand and market share while also improving its social and environmental sustainability.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against developing mental illness and improve symptoms for those who already suffer from conditions like anxiety and depression.
The document provides a financial ratio analysis of Nike, Inc. (NKE) conducted by two students. It includes:
1) A brief background history of Nike and recent developments.
2) Analyses of Nike's profitability ratios from 2012-2013 which show improving returns and margins.
3) Analyses of Nike's financial stability ratios from 2012-2013 which show increasing working capital and debt coverage but also higher total debt levels.
4) A conclusion that Nike's shares may not be worth investing in due to an expensive price-to-earnings ratio above what conservative investors typically pay.
Nike's primary target market is active teens and young adults who enjoy high-quality sporting goods. Nike positions itself as the premier brand through sponsoring famous athletes and running prominent advertising campaigns. It dominates the $278 billion global sports apparel market with a 33% market share, distributing its premium-priced footwear and apparel worldwide through various retail channels.
Innovative Marketing & Communications at BurberryAlexandra Ashton
Burberry is a leading British luxury brand known for its iconic trench coats, trademark check pattern, and knight logo. The brand aims to appeal to a younger, fashion-forward audience while maintaining its heritage in luxury outerwear. Burberry uses innovative digital marketing strategies and celebrity endorsements to engage customers globally and reinforce its image of exclusive, prestigious British design. The company focuses on penetrating current luxury markets while also diversifying into new product categories and geographies.
The document provides a history of the Converse brand and Chuck Taylor All Star shoe. It discusses how the brand was founded in 1908 and introduced the All Star basketball shoe in 1917. Chuck Taylor became a salesman for Converse in 1921 and promoted the brand. Over 800 million pairs of Chucks have been sold. Converse produces various shoe lines and has expanded into clothing and accessories. It was purchased by Nike in 2003 who has adopted both fashion and performance strategies to grow the brand globally.
Disney- A Brand Management PerspectiveRohan Telang
The document discusses the brand Disney. It provides a brief history of Disney from its founding in 1923 through key milestones like Steamboat Willie in 1928 and opening of Disneyland in 1955. Disney's business segments are outlined including media networks, parks and resorts, studio entertainment, consumer products and interactive media. The mission, value proposition and positioning statements focus on providing magical, fun experiences for children and families. Key aspects of Disney's consistent, enduring and distinctive brand personality are also summarized.
This document provides a brand audit of Under Armour, analyzing the brand's positioning, market share, elements, marketing support programs, competitors, and recommendations. Some key points:
- Under Armour positions itself as providing performance athletic apparel that regulates temperature and improves performance. Its market share has grown to 14% of the US market, surpassing Adidas as the #2 brand.
- Brand elements like the name, URL, logo and spokespeople effectively meet Keller's criteria of being memorable, meaningful, likable, transferable, adaptable and protectable.
- Marketing programs focus on the temperature regulating apparel lines and securing sponsorships. Competitors Adidas and Nike also utilize celebrity
This document provides an overview of the history and operations of Nike, Inc. It discusses how Nike originated as Blue Ribbon Sports, which was founded in 1964 by Phil Knight and Bill Bowerman to import Japanese-made running shoes. The company grew significantly over the decades as it shifted manufacturing overseas and developed innovative shoe designs. By the 1980s, Nike had attained 50% of the US athletic shoe market and went public. The document also briefly outlines Nike's portfolio of brands, organizational structure, products, and external factors influencing the company.
I made this PowerPoint presentation for my Consumer Behavior class in 2006. It was the for a project in which we examined Under Armour's integrated marketing communications, and made recommendations at the end.
Nike is the world's largest athletic footwear and apparel company based in Oregon. It commands about 10% of the global athletic apparel market and 35% share of the footwear market. Nike uses an integrated marketing communications approach including advertising, digital marketing, celebrity endorsements, sponsorships, customer service and promotions. Key aspects of Nike's promotion strategy are heavy investments in social media platforms like Facebook, Twitter and Instagram and using star athletes and celebrities to promote its brand and products.
This document summarizes information about the Disney brand. It discusses Disney's business segments, revenues, management changes, and brand positioning. Disney's brand mantra focuses on fun, family entertainment. The brand promises joy and memories. It is well-known globally and associated with fun, magic and quality. Disney competes through innovation, customer focus, and experience across its parks, movies, TV and more. Recent management has emphasized creativity, collaboration and franchises. The document performs a SWOT and competitive analysis of Disney.
Walt Disney and Roy Disney founded The Walt Disney Company in 1923, introducing Mickey Mouse. In 1937, Snow White and the Seven Dwarfs was released as the first full-length animated feature film. Walt Disney died in 1966. The company struggled after both brothers passed away but had a comeback with The Little Mermaid in 1971. Disney now consists of business segments like studios, parks and resorts, consumer products, and media networks. Disney focuses on mass appeal by keeping prices accessible and promotes holistically across various media and retail stores. The company adapts to changes and builds customer lifetime value by keeping people happy and returning repeatedly.
This Hermes window display uses projectors and monitors to create the illusion of scarves blowing in the wind. Created by Japanese designer Tokujin Yoshioka, the futuristic display animates scarves on screens to look like they are being tossed about by a breeze. The eye-catching window utilizes technology to produce a striking visual effect.
Nike is the largest seller of athletic footwear and apparel in the world. In 2003, Nike had revenues of $10.7 billion and employed 26,000 people worldwide. Nike owns several other brands including Cole Haan, Converse, and Hurley. While Nike has strong brand recognition and marketing, it also faces challenges from competitors and issues with labor practices in some factories. The document analyzes Nike's financial performance and ratios, as well as performing external analyses of the industry, opportunities, threats, and competitors. It considers various strategic options for Nike and decides the primary strategy should be focusing on growing sales to women and kids through new products and marketing campaigns.
The document analyzes the key success factors of Nike's growth, including its history starting in the 1950s as Blue Ribbon Sports, products for men and women like the Air Force 1 and Air Max shoes, and factors influencing its success such as strong brand awareness, manufacturing efficiency, product innovation, endorsement deals, and marketing campaigns featuring slogans like "Just Do It". It also examines Nike's board of directors, external analysis using Porter's Five Forces model, internal analysis, SWOT analysis, and current strategies and goals.
Lululemon is a brand known for high-quality yoga and athletic apparel. It differentiates itself from competitors by focusing on women as consumers and emphasizing community and wellness in its stores and marketing. Lululemon uses innovative fabrics and designs its products to be both stylish and high-performing. The brand communicates through minimal traditional advertising and focuses on interactive marketing like in-store classes and events. Word-of-mouth from ambassadors and customers is an important part of Lululemon's marketing strategy. The brand has been very successful financially and in building a loyal customer base around its focus on health, fitness and lifestyle.
Nike is a leading athletic footwear and apparel company. It has a comprehensive strategic management case study that provides financial statements and competitor information from 2009. The case examines Nike's strategies and recommends a three-year strategic plan. Nike's vision is to inspire and innovate for every athlete, while its mission is to be the leading sports brand worldwide. External factors like younger consumers spending more on athletic gear and threats like increased competition are analyzed. Internally, Nike's strengths include dominant market share and popular brands, but weaknesses include declining profits and overseas manufacturing.
Luxury brands have always been a fascinating sector and luxury brand marketing one of the most complicated disciplines.
Packaged as the 8 P’s of luxury brand marketing, this article attempts to bring together the elements and interplay between the principles that are employed in the luxury brand marketing mix.
Phil Knight fundó Nike en 1964 como Blue Ribbon Sports para comercializar zapatillas deportivas japonesas en Estados Unidos. En la década de 1970, Nike comenzó a diseñar sus propias zapatillas y ropa deportiva, y contrató al entrenador Bill Bowerman para que diseñara sus zapatillas. En la década de 1980, Nike se hizo famosa por patrocinar a estrellas deportivas como Michael Jordan y por su eslogan "Just Do It".
Uniqlo has become the most successful fashion apparel company in Japan through pursuing global expansion while maintaining a distinct Japanese identity. It focuses on affordable, high-quality casual wear for women aged 25-35. Uniqlo aims to be the world's number one apparel retailer by 2020, and has over 2,700 stores in 17 countries, producing the majority of items in China, Bangladesh, and Turkey. It positions itself as a provider of everyday unique Japanese fashion at reasonable prices, and endorses this image through collaborations and in-store experiences.
Nike is the market leader in the US footwear market, holding a 16.2% market share in 2013. It successfully segments customers and products, allowing it to price discriminate. Nike also outsources manufacturing to lower costs while maintaining quality. Through innovation, celebrity endorsements, and responsive strategies, Nike is able to charge premium prices and follow a price leadership approach over competitors like Adidas.
Strategic Management: Walt Disney Case StudyCallie Unruh
The document is an organizational case study of The Walt Disney Company. It provides an overview of Disney's mission, internal assessment including finances and organizational structure, external assessment of competitors and market position, SWOT analysis, and strategies. The key points are:
- Disney's mission is to be a leading producer and provider of entertainment and information globally.
- Internally it has a diversified structure with business units in media networks, studio entertainment, parks and resorts, and consumer products.
- Externally it competes with other large media companies and assesses opportunities in technology changes, new markets, and threats like economic shifts.
- Strategies discussed include pursuing growth through diversification, increasing market
This document discusses luxury branding and luxury goods. It defines luxury as non-essential products and services associated with affluence. Luxury brands are those whose products are primarily luxury goods or whose names are associated with luxury. The top 5 luxury brands in the world are Gucci, Chanel, Calvin Klein, Louis Vuitton, and Christian Dior. Luxury goods include clothing, accessories, automobiles, watches, shoes, hotels, jewelry, wine and other items. New trends in luxury include the growth of online luxury sales, with the top 10 luxury brands capturing almost 90% of the online market, and branded brand collaborations between respected brands in different industries.
The document outlines Disney's brand strategy, including their vision, mission, values, audience, personality, and positioning statement. It also includes brand maps comparing Disney to competitors in media networks and amusement parks. There is a gap between Disney's desired identity as family-focused entertainment and their conceived identity, with some seeing them as less innovative and more commercially driven.
Nike is the largest seller of athletic footwear and apparel in the world. It designs, develops, and sells products under its own brand along with Jordan, Hurley, and Converse. In 2015, Nike had revenues of $33 billion and net income of $3.5 billion. While Nike faces challenges from increased competition and changing consumer spending habits, its strong brand recognition and endorsement deals with star athletes provide opportunities for continued growth.
This document summarizes Nike's condensed balance sheet information over a 5 year period from 2007 to 2011. It shows that over this period Nike's total assets increased from $10.7 billion in 2007 to $15 billion in 2011, with increases in cash, receivables, inventory and other asset categories. Nike's total equity also increased over this period from $7 billion to $9.8 billion, reflecting growth in retained earnings and additional paid-in capital.
This document provides a brand audit of Under Armour, analyzing the brand's positioning, market share, elements, marketing support programs, competitors, and recommendations. Some key points:
- Under Armour positions itself as providing performance athletic apparel that regulates temperature and improves performance. Its market share has grown to 14% of the US market, surpassing Adidas as the #2 brand.
- Brand elements like the name, URL, logo and spokespeople effectively meet Keller's criteria of being memorable, meaningful, likable, transferable, adaptable and protectable.
- Marketing programs focus on the temperature regulating apparel lines and securing sponsorships. Competitors Adidas and Nike also utilize celebrity
This document provides an overview of the history and operations of Nike, Inc. It discusses how Nike originated as Blue Ribbon Sports, which was founded in 1964 by Phil Knight and Bill Bowerman to import Japanese-made running shoes. The company grew significantly over the decades as it shifted manufacturing overseas and developed innovative shoe designs. By the 1980s, Nike had attained 50% of the US athletic shoe market and went public. The document also briefly outlines Nike's portfolio of brands, organizational structure, products, and external factors influencing the company.
I made this PowerPoint presentation for my Consumer Behavior class in 2006. It was the for a project in which we examined Under Armour's integrated marketing communications, and made recommendations at the end.
Nike is the world's largest athletic footwear and apparel company based in Oregon. It commands about 10% of the global athletic apparel market and 35% share of the footwear market. Nike uses an integrated marketing communications approach including advertising, digital marketing, celebrity endorsements, sponsorships, customer service and promotions. Key aspects of Nike's promotion strategy are heavy investments in social media platforms like Facebook, Twitter and Instagram and using star athletes and celebrities to promote its brand and products.
This document summarizes information about the Disney brand. It discusses Disney's business segments, revenues, management changes, and brand positioning. Disney's brand mantra focuses on fun, family entertainment. The brand promises joy and memories. It is well-known globally and associated with fun, magic and quality. Disney competes through innovation, customer focus, and experience across its parks, movies, TV and more. Recent management has emphasized creativity, collaboration and franchises. The document performs a SWOT and competitive analysis of Disney.
Walt Disney and Roy Disney founded The Walt Disney Company in 1923, introducing Mickey Mouse. In 1937, Snow White and the Seven Dwarfs was released as the first full-length animated feature film. Walt Disney died in 1966. The company struggled after both brothers passed away but had a comeback with The Little Mermaid in 1971. Disney now consists of business segments like studios, parks and resorts, consumer products, and media networks. Disney focuses on mass appeal by keeping prices accessible and promotes holistically across various media and retail stores. The company adapts to changes and builds customer lifetime value by keeping people happy and returning repeatedly.
This Hermes window display uses projectors and monitors to create the illusion of scarves blowing in the wind. Created by Japanese designer Tokujin Yoshioka, the futuristic display animates scarves on screens to look like they are being tossed about by a breeze. The eye-catching window utilizes technology to produce a striking visual effect.
Nike is the largest seller of athletic footwear and apparel in the world. In 2003, Nike had revenues of $10.7 billion and employed 26,000 people worldwide. Nike owns several other brands including Cole Haan, Converse, and Hurley. While Nike has strong brand recognition and marketing, it also faces challenges from competitors and issues with labor practices in some factories. The document analyzes Nike's financial performance and ratios, as well as performing external analyses of the industry, opportunities, threats, and competitors. It considers various strategic options for Nike and decides the primary strategy should be focusing on growing sales to women and kids through new products and marketing campaigns.
The document analyzes the key success factors of Nike's growth, including its history starting in the 1950s as Blue Ribbon Sports, products for men and women like the Air Force 1 and Air Max shoes, and factors influencing its success such as strong brand awareness, manufacturing efficiency, product innovation, endorsement deals, and marketing campaigns featuring slogans like "Just Do It". It also examines Nike's board of directors, external analysis using Porter's Five Forces model, internal analysis, SWOT analysis, and current strategies and goals.
Lululemon is a brand known for high-quality yoga and athletic apparel. It differentiates itself from competitors by focusing on women as consumers and emphasizing community and wellness in its stores and marketing. Lululemon uses innovative fabrics and designs its products to be both stylish and high-performing. The brand communicates through minimal traditional advertising and focuses on interactive marketing like in-store classes and events. Word-of-mouth from ambassadors and customers is an important part of Lululemon's marketing strategy. The brand has been very successful financially and in building a loyal customer base around its focus on health, fitness and lifestyle.
Nike is a leading athletic footwear and apparel company. It has a comprehensive strategic management case study that provides financial statements and competitor information from 2009. The case examines Nike's strategies and recommends a three-year strategic plan. Nike's vision is to inspire and innovate for every athlete, while its mission is to be the leading sports brand worldwide. External factors like younger consumers spending more on athletic gear and threats like increased competition are analyzed. Internally, Nike's strengths include dominant market share and popular brands, but weaknesses include declining profits and overseas manufacturing.
Luxury brands have always been a fascinating sector and luxury brand marketing one of the most complicated disciplines.
Packaged as the 8 P’s of luxury brand marketing, this article attempts to bring together the elements and interplay between the principles that are employed in the luxury brand marketing mix.
Phil Knight fundó Nike en 1964 como Blue Ribbon Sports para comercializar zapatillas deportivas japonesas en Estados Unidos. En la década de 1970, Nike comenzó a diseñar sus propias zapatillas y ropa deportiva, y contrató al entrenador Bill Bowerman para que diseñara sus zapatillas. En la década de 1980, Nike se hizo famosa por patrocinar a estrellas deportivas como Michael Jordan y por su eslogan "Just Do It".
Uniqlo has become the most successful fashion apparel company in Japan through pursuing global expansion while maintaining a distinct Japanese identity. It focuses on affordable, high-quality casual wear for women aged 25-35. Uniqlo aims to be the world's number one apparel retailer by 2020, and has over 2,700 stores in 17 countries, producing the majority of items in China, Bangladesh, and Turkey. It positions itself as a provider of everyday unique Japanese fashion at reasonable prices, and endorses this image through collaborations and in-store experiences.
Nike is the market leader in the US footwear market, holding a 16.2% market share in 2013. It successfully segments customers and products, allowing it to price discriminate. Nike also outsources manufacturing to lower costs while maintaining quality. Through innovation, celebrity endorsements, and responsive strategies, Nike is able to charge premium prices and follow a price leadership approach over competitors like Adidas.
Strategic Management: Walt Disney Case StudyCallie Unruh
The document is an organizational case study of The Walt Disney Company. It provides an overview of Disney's mission, internal assessment including finances and organizational structure, external assessment of competitors and market position, SWOT analysis, and strategies. The key points are:
- Disney's mission is to be a leading producer and provider of entertainment and information globally.
- Internally it has a diversified structure with business units in media networks, studio entertainment, parks and resorts, and consumer products.
- Externally it competes with other large media companies and assesses opportunities in technology changes, new markets, and threats like economic shifts.
- Strategies discussed include pursuing growth through diversification, increasing market
This document discusses luxury branding and luxury goods. It defines luxury as non-essential products and services associated with affluence. Luxury brands are those whose products are primarily luxury goods or whose names are associated with luxury. The top 5 luxury brands in the world are Gucci, Chanel, Calvin Klein, Louis Vuitton, and Christian Dior. Luxury goods include clothing, accessories, automobiles, watches, shoes, hotels, jewelry, wine and other items. New trends in luxury include the growth of online luxury sales, with the top 10 luxury brands capturing almost 90% of the online market, and branded brand collaborations between respected brands in different industries.
The document outlines Disney's brand strategy, including their vision, mission, values, audience, personality, and positioning statement. It also includes brand maps comparing Disney to competitors in media networks and amusement parks. There is a gap between Disney's desired identity as family-focused entertainment and their conceived identity, with some seeing them as less innovative and more commercially driven.
Nike is the largest seller of athletic footwear and apparel in the world. It designs, develops, and sells products under its own brand along with Jordan, Hurley, and Converse. In 2015, Nike had revenues of $33 billion and net income of $3.5 billion. While Nike faces challenges from increased competition and changing consumer spending habits, its strong brand recognition and endorsement deals with star athletes provide opportunities for continued growth.
This document summarizes Nike's condensed balance sheet information over a 5 year period from 2007 to 2011. It shows that over this period Nike's total assets increased from $10.7 billion in 2007 to $15 billion in 2011, with increases in cash, receivables, inventory and other asset categories. Nike's total equity also increased over this period from $7 billion to $9.8 billion, reflecting growth in retained earnings and additional paid-in capital.
Nike is the world's largest sports apparel company. It has strong brand recognition and focuses on producing high-quality athletic products. While Nike faces competition from companies like Adidas, it maintains a leading position through marketing, innovation, and expanding into new markets globally. The analysis identifies opportunities for Nike to further penetrate growing markets and develop new product lines, while also addressing threats from competitors and shifting consumer preferences.
The document analyzes the financial performance of Dollarama Inc. (TSE: DOL) through various financial metrics and ratios for fiscal years 2009-2011. It finds that total sales and net income increased substantially over this period as the company expanded its store network and operations across Canada. Dollarama aims to continue growing by investing in employees, warehouses, distribution centers, and capitalizing on holiday sales seasons. The analysis provides insights into Dollarama's financial stability, profitability, and opportunities for further expansion.
Nike Stock Pitch: Analysis and ValuationAyan Sengupta
Nike's revenue in fiscal year 2017 was distributed as follows: 57% from footwear, 27% from apparel, 6.5% from equipment, 2% from global brand divisions, and 6.5% from Converse. Geographically, Nike's sales were distributed as: 47% from North America, 19% from Western Europe, 6% from Central & Eastern Europe, 10% from Greater China, 3% from Japan, and 15% from emerging markets. Nike has strengths in its brand reputation and global presence but relies heavily on the footwear market. It faces opportunities in emerging markets but also threats from competition and negative public perceptions.
FINAL DRAFT Starbucks Financial Analysis Term PaperMatthew Urdan
This document provides a financial analysis of Starbucks Coffee Company. It summarizes Starbucks' business operations, competitive position in the coffee industry, macroeconomic factors impacting the global coffee market, and a SWOT analysis. A financial analysis of Starbucks finds that the company has strong liquidity, effective asset management, and low debt levels compared to competitors. Overall, the analysis indicates that Starbucks has demonstrated solid financial performance and is well-positioned for continued growth.
This document provides an analysis of Nike Inc. to determine if the company is a good investment for NorthPoint Group's large-cap fund. It includes a company overview of Nike's strengths, weaknesses, opportunities, and threats. It also analyzes the current macroeconomic environment, Nike's main competitors (Adidas and Under Armour), the sporting goods industry, and provides a financial analysis of Nike including ratios, discounted cash flow, credit risk, and relative valuation. Based on the total analysis, the author recommends NorthPoint purchase shares of Nike as they are currently undervalued and poised for growth.
Financial Ratio Analysis Tutorial Exercise 1 AnswersPang Shuen
The document analyzes various financial stability and profitability ratios for a business between 2013 and 2014. It finds that the business' return on equity, net profit margin, selling expense ratio, general expense ratio, and interest coverage ratio all improved between 2013 and 2014, indicating better profitability and expense control. However, the working capital ratio and debtor turnover ratio decreased, suggesting worsening liquidity and slower collection of debts. Overall, the ratios show the business improved profitability but liquidity became slightly weaker during this period.
Putting digital historical geography into perspective(s)Sophie Visser
Digital historical geography might be expected to comprise a similar set of approaches and methods as in digital cartography, digital humanities - which includes digital history and may include digital heritage - and digital (historical) landscape. Apparently, though, it emerged as such only rather recently. In practice, it may use the results of these other disciplines or may apply the same kind of methods to make and communicate its own information results. This situation leads to several questions. Firstly, where does digital historical geography actually stand in this arena of digital disciplines? What then is specific for digital historical geography? Secondly, what does ’digital’ mean? Does only computerized information count in that respect, and more specifically GISses? Thirdly, is it foremost about data, inputs and/or outputs or also about the process of historical geography? For instance, digital humanities also includes the research process, while digital heritage or digital landscape focus on outputs and data. Fourthly, do purpose and audience make any difference? This presentation explores these questions briefly with the use of some examples.
Nike is the largest seller of athletic footwear and apparel in the world. It has seen consistent sales growth over the past four years and an increase in gross margin. However, gross margin growth is not expected to continue. Its main competitors are Adidas, who recently acquired Reebok, and the effects on Nike are still unknown. Analysts recommend Nike as an outperform with a price target between $95-110. While risks exist, investment is recommended to tap into foreign market growth opportunities like China.
Toyota faced acceleration issues caused by floor mats trapping pedals and pedals binding under hard acceleration, resulting in crashes and deaths. This led Toyota to recall over 5 million vehicles and implement short term solutions like cutting pedal edges. Toyota proposed long term solutions like having a single supplier for each pedal model to better control quality, designing custom floor mats for different vehicle types, and implementing an electronic throttle override system.
Nike is a major publicly traded sportswear and equipment company. It was founded in 1962 as Blue Ribbon Sports and changed its name to Nike in 1978. Key facts:
- Headquarters in Oregon, USA
- Over 35,000 employees worldwide
- Products include athletic shoes, apparel, equipment for sports like running, football, basketball etc.
- Has experienced strong revenue and earnings growth since adopting a long-term strategy in 2001
- Faces challenges from macroeconomic conditions and competitive industry
This document analyzes the cost of capital for Nike Inc. It discusses Nike's revenues plateauing in the late 1990s and market share declining from 1997 to 2000. The methodology section notes that the weighted average cost of capital method was used based on the latest balance sheet, with debt at 27.0% and equity at 73.0%. Nike's cost of debt was calculated at 4.3% and after-tax cost of debt was 2.7%. The capital asset pricing model was utilized to estimate Nike's cost of equity at 10.5%, factoring in the risk-free rate, risk premium and beta, resulting in an overall cost of capital of 8.4% for Nike.
According to the financial analysis and valuation of Nike, the analyst recommends holding Nike stock. The intrinsic share value is estimated to be $59.92 based on the full pro forma valuation approach, which is higher than the current market price of $50.84. Nike plans to expand in both developed and developing markets, which should drive future revenue growth. Various valuation methods estimate Nike's share price could increase by up to 17.86% over the next period. However, there are also risks to consider like currency fluctuations and increased competition.
This document provides information on conducting a SWOT analysis, including what it is, when to use it, the key elements, and how to create and use one. A SWOT analysis involves identifying an organization's strengths and weaknesses (internal factors) as well as opportunities and threats (external factors) to guide strategic planning and decision making. It should be developed by designating leaders or facilitators and recorders to brainstorm and discuss these four areas and document the results. The completed SWOT analysis can then be used to identify issues to address, set goals, and create an action plan.
This document provides an overview and analysis of Nike, including its mission statement, product line, history with Michael Jordan, situation analysis using SWOT and Porter's Five Forces, and recommendations for entering new markets. Key points include Nike's mission to inspire all athletes, its iconic partnership with Michael Jordan that helped launch the Air Jordan brand, and a suggestion to enter the markets of Pakistan and Afghanistan due to their large populations that are interested in sports. A detailed analysis of Nike's competitors, suppliers, public perceptions, and the political, economic, social, technological and environmental factors impacting its industry is also presented.
Este documento resume la historia y estrategia de marketing de Nike. Explica cómo Nike se ha convertido en una de las marcas más reconocibles del mundo a través de asociarse con atletas famosos, crear una cultura de estilo de vida alrededor del deporte y expandirse agresivamente a nuevos mercados. Sin embargo, también ha recibido críticas por externalizar la producción a fábricas en el extranjero donde se denuncian malas condiciones laborales.
This document provides an analysis of Nike, Inc. for 2009. It includes sections on Nike's history, vision and mission statements, external and internal assessments, financial statements and ratios for 2009, and strategic recommendations. Key points analyzed include Nike's strong brand name, marketing campaigns, research and development capabilities, portfolio diversity and financial position as strengths, and high product pricing, revenue dependence on footwear, and manufacturing issues as weaknesses. Opportunities discussed are expanding into new markets and recycled materials, while threats include high competition and negative public perceptions. Overall recommendations are made to further promote a fashion image, expand into new markets and customer groups, and strengthen alliances regarding social responsibility.
How have Nike used innovation in both their products and their use of endorse...William Risso-Gill
This document discusses how Nike gained dominance in the NBA shoe market through innovation in products and endorsements. It explains that Nike developed high-top basketball shoes with better ankle support in the 1980s in response to the high ankle injury rates in the NBA at the time. This innovation helped Nike capture market share from Converse. The document also describes how Nike's endorsement of Michael Jordan and creation of the iconic Air Jordan shoe line in the 1980s was hugely successful and helped Nike gain over 90% of the NBA shoe market. While other brands like Adidas have tried to compete, Nike's patent protections of shoe designs and stronger endorsement deals have allowed it to maintain its large market share.
This document provides an equity analysis and valuation report for Nike. It includes an overview of Nike, analysis of the footwear and apparel industries, competitor comparisons for Nike, financial analyses including ratios and regressions, forecasts of sales and financial statements, valuation of Nike using DCF and other models, and appendices with supporting calculations and data. Key findings are that Nike significantly outperforms industry averages on margins and profitability, has lower risk than the market, and is expected to have continued strong growth and performance based on financial analyses and forecasts, supporting a fair value estimate of $130.37 per share for Nike stock.
This document provides an analysis of financial ratios for Nike from 2013 to 2014. It includes profitability ratios like return on equity and net profit margin, stability ratios like working capital ratio and total debt ratio, and price/earnings ratios. The analysis found that Nike's return on equity and gross profit margin increased from 2013 to 2014, while its working capital decreased and total debt increased. The document recommends against investing in Nike due to its high price/earnings ratio requiring a long time for investors to recoup their investment. It includes appendices with Nike's income statements, balance sheets, cash flow statements, and current share price.
This document provides an analysis of financial ratios for Nike from 2013 to 2014. It includes profitability ratios like return on equity and net profit margin, stability ratios like working capital ratio and total debt ratio, and price/earnings ratios. Based on the analysis, the document recommends against investing in Nike due to a high price/earnings ratio and issues with controlling expenses. While net profits increased, it would take a long time for investors to earn back their initial investment.
The document provides a financial ratio analysis of Nike, Inc. (NKE) conducted by two students. It includes:
1) A brief background history of Nike and recent developments.
2) Analyses of Nike's profitability ratios from 2012-2013 which show improving returns and margins.
3) Analyses of Nike's financial stability ratios from 2012-2013 which show increasing working capital and debt coverage but also higher total debt levels.
4) A conclusion that Nike's shares may not be worth investing in due to an expensive price-to-earnings ratio above what conservative investors typically pay.
Nike 2007 Financial Statement Comparision with Statementdahalpuskar
NIKE is one of the world's largest athletic shoe and apparel companies. It was founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and began importing Japanese running shoes. By the 1970s, Nike had grown significantly in sales and changed its name. Today Nike captures over 20% of the US athletic shoe market and has expanded into various other sports equipment, apparel, and accessories. It sells products through retailers, owned stores, licensees, and its website. Nike has several subsidiaries and announced a quarterly dividend in 2008 while also putting its hockey equipment business Bauer up for sale.
This document provides a valuation of Nike, Inc. using two methods: discounted cash flow (DCF) and market multiples. The DCF analysis estimates Nike's weighted average cost of capital at 6.98% and forecasts free cash flow over three years using growth rates of 10%, 6%, and 9%. It then calculates a terminal value using a perpetual growth rate of 4%. The DCF provides a target price of $145.77, indicating a "buy" signal. However, valuation using market multiples such as EV/EBITDA provides a "sell" signal. Although market multiples are commonly used, DCF is considered the most reliable method for intrinsic valuation. Therefore, the analysis recommends a "buy" for
This document analyzes the financial performance of Nike from 2013-2014 using various ratios. It finds that Nike's return on equity and gross profit margin increased from 2013-2014, while its net profit margin, selling expense ratio, and working capital ratio decreased over this period. Overall, the analysis concludes that while Nike remains a stable and profitable company, it does not recommend purchasing shares due to the long payback period of over 30 years.
This document analyzes the financial performance of Nike from 2013-2014 using various ratios. It finds that Nike's return on equity and gross profit margin increased from 2013-2014, while its net profit margin, selling expense ratio, and working capital ratio decreased over this period. Overall, the analysis concludes that while Nike remains a stable and profitable company, its expenses are rising and it takes a long time for investors' money to be recouped, so purchasing shares is not recommended. The document also includes sections on Nike's history, products, and references.
This document analyzes the financial performance of Nike from 2013-2014. It includes an analysis of profitability ratios like return on equity and net profit margin, stability ratios like working capital ratio and debt ratios, and a price-earnings ratio. While some ratios like gross profit margin and return on equity increased from 2013-2014, other ratios declined like ability to control expenses. Overall, Nike remained financially stable but the document recommends not purchasing shares due to the long payback period.
Nike conducted a financial ratio analysis of its performance from 2013 to 2014. Several ratios showed improvement, such as return on equity and gross profit margin, but others declined like net profit margin and ability to control expenses. While current liabilities can still be paid and debt remains under limits, inventory turnover slowed and debts took longer to collect. The company remained profitable but its stock would take over 30 years to see a return on investment. Overall, Nike showed revenue growth potential but its shares were not recommended for purchase.
Nike's Q2 FY 2009 earnings call transcript summarizes the company's financial results and outlook. Key highlights include:
- Nike reported revenue growth of 6% to $4.6 billion for Q2, with earnings per share up 13% to $0.80.
- The Nike brand grew revenues 6% on a currency neutral basis, while other continuing brands grew 3%.
- Nike saw strong growth in key categories like running and basketball, and gains in market share globally.
- While managing inventory carefully, Nike is focused on innovation, connecting with consumers, and leveraging its brand strength to navigate current economic challenges.
- Nike leaders expressed confidence in the company's strategy
This transcript summarizes Nike's fiscal 2009 second quarter earnings call on December 17, 2008:
1) Nike reported record second quarter revenue for the Nike brand of $4 billion, up 6% in constant currency, with growth in major categories like running, basketball, and sportswear.
2) While the economic environment presents challenges, Nike is confident in its strength and competitive advantages in connecting with consumers and creating innovative products.
3) Nike will focus on managing costs carefully while continuing to invest in demand creation and brand strength to drive profitable growth over the long term.
I recommend an underweight rating for Nike with a target price of $85. While Nike has a strong brand and innovative products that have driven growth, the stock is overvalued based on discounted cash flow and relative valuation models. Nike faces risks from increased competition and relies on continued innovation and expansion in direct-to-consumer and emerging markets to justify its premium valuation.
BackgroundNike, originally called Blue Ribbon Sports (BRS), was.docxikirkton
Background:
Nike, originally called Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964 and then in 1971 it was officially called Nike, Greek name of the Goddess of victory. Nike is a USA multinational company that specialize in designing, developing and manufacturing of footwear, apparel, equipment and accessories. The company Headquarter is in Washington County, Oregon, in the Portland metropolitan area (Sage, 2008). Nike is present everywhere in the world thanks to its advanced supply chain and its broad line of products that it markets under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. Nike also sponsors high profile athletes like golf super star Tiger Woods under Nike golf and Also soccer Super star Cristiano Ronaldo and so many other Brilliant Athletes.
Nike has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia. Also, Nike employees more than 62,600 full-time employees as of the last fiscal year (Mergent, 2015). Nike is considered the major sports equipment supplier in the world, with more than $30 billion in revenues made in the fiscal year of 2015. In addition, Nike has a Market capitalization of $79 billion, net income of $3 billion with dividends of 1.12 and dividend yield of 0.96 (Mergent, 2015).
Nike’s CEO Mark Parker aged 59 years was leading the company in other ways way before he took the position of the CEO. He was a competitive runner at the Penn State University, when he joined Nike as the first footwear designer back in 1979 and was the center of innovation since then. For 30 years in the company he took the position of Vice President of global footwear and co-president of the Nike brand. He also was the leader in many industry breakthroughs in product design. Parker was also the leader in Nike’s global growth which included the acquisition of Converse and Hurley International LLC (Nike, 2015).
Financial Statements:
Standardized Annual Income Statement
Report Date
05/31/2015
Currency
USD
Scale
Thousands
Total Revenue
30601000
Direct Costs
16534000
Gross Profit
14067000
Selling General & Admin
9892000
Other Operating Expense
-58000
Total Indirect Operating Costs
9834000
Operating Income
4233000
Interest Income
-28000
Other Non-Operating Income
0
Total Non-Operating Income
-28000
Earnings Before Tax
4205000
Taxation
932000
Earnings After Tax
3273000
Discontinued Operations
-
Extraordinary Items
0
Accounting Changes
0
Net Income
3273000
(Mergent, 2015)
Nike Total revenues in 2015 were $30.6 billion, while direct costs were $16.5 billion leading to a gross profit of $14.1 billion. After deducting total operating cost, operat ...
Title PageComplete your Title page on this tab.Please include the TakishaPeck109
Title PageComplete your Title page on this tab.Please include the names of your team members, the course, the date, your instructor's name, and the title for the project.
ProfilesComplete one paragraph, profiling each company's business, including information such as brief histories, where each company is located, number of employees, the products each company sells, and so forth. Please reference any websites that you used for the profiles on the Bibliography tab.NIKE, Inc. designs, develops, markets, and sells athletic apparel, footwear, equipment, and accessories. NIKE's headquarters are in Beaverton, Oregon. They were founded in 1964 as Blue Ribbon Sports, Inc. but, in 1971, they changed their name to NIKE, Inc. According to Yahoo! Finance, NIKE has 76,700 full-time employees. NIKE is known for their celebrity endorsements including basketball icon, Michael Jordan. NIKE had 2014 net product sales of $27.8 billion. Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories. Under Armour was founded in 1996 and is headquartered in Baltimore, Maryland. According to Yahoo! Finance, Under Armour has 7,000 full-time employees. Under Armour was founded by Kevin Plank, a former University of Maryland college football player. Under Armour had net product sales of $3.1 billion for 2014.
RatiosUse this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab, and also include your commentary.The 2014 financial statements used to calculate these ratios are available in the Investor Relations sections of the Nikeand Under Armour websites.NIKEUnder ArmourInterpretation and comparison between the two companies' ratios (reading Chapter 13 will help you prepare the commentary)5/31/1412/31/14The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember that each ratio below requires a comparison.Earnings per Share of Common Stock (basic - common)As given in the income statement$ 3.05$0.98Current RatioCurrent assets$13,696=2.72$1,549,399=3.67Current liabilities$5,027$421,627Gross Profit RateGross profit$12,446=44.8%$1,512,206=49.0%Net sales$27,799$3,084,370Profit MarginNet income$2,693=9.7%$208,042=6.7%Net sales$27,799$3,084,370Inventory TurnoverCost of goods sold$15,353=4.1$1,572,1643.1Average inventory$3,716$502,860Days in Inventory365 days365=88365=117Inventory turnover4.1days3.1daysAccounts Receivable TurnoverNet credit sales$27,799=8.5$3,084,370=12.6Average net accounts receivable$3,276$244,894Average Collection Period365 days365=43365=29Accounts receivable turnover8.5days12.6daysAsset turnover Net sales$27,799=1.54$3,084,370=1.68Average total assets$18,070$1,836,412Return on Assets (ROA)Net income$2,693=14.9%$208,042=11.3%Average total assets$18,070$1,836,412Debt to assets ratioTotal Liabilities$7,770=41 ...
Lawn Tennis Balls Manufacturing Business | Start Your Own Lawn Tennis Balls B...Ajjay Kumar Gupta
Starting the production of lawn tennis balls is an exciting adventure that culminates in a tangible good. To ensure that the product is manufactured in a safe, effective, and cost-effective way, careful planning, research, and the appropriate resources are needed. We'll be looking at the processes involved in starting the production of lawn tennis balls from conception to completion in this blog post. We'll examine some of the crucial factors that must be taken into account before beginning production and talk about how to make sure the project is successful.
𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬
NIIR PROJECT CONSULTANCY SERVICES, DELHI
An ISO 9001:2015 Company
ENTREPRENEUR INDIA
106-E, Kamla Nagar, Opp. Mall ST,
New Delhi-110007, India.
Email: npcs.ei@gmail.com
info@entrepreneurindia.co
Tel: +91-11-23843955, 23845654, 23845886
Mobile: +91-9097075054, 8800733955
Website: https://www.entrepreneurindia.co
https://www.niir.org
This document analyzes the security of an investment in Under Armour. It provides financial highlights and ratios for 2013-2016 and projections through 2020. Key points include high debt/equity ratios that pose financial risk, increasing assets but decreasing asset turnover, and recommendations to hold the stock with a price target of $30.63 based on discounted cash flow valuation. Risks discussed are related to finances, markets, and operations.
Our team conducted research and analysis to calculate the intrinsic enterprise value of Nike, Inc. This was done using a variety of methods, including: dividend discount model, discounted cash flow model, industry comparables, and basic economic research.
The document is the transcript from Nike's fiscal year 2009 first quarter earnings call.
The key points are:
- Nike's revenue was up 17% to $5.4 billion for the quarter, with 28 consecutive quarters of year-over-year growth. Gross margins were also up.
- Global futures orders were up 10% for the 31st consecutive quarter of increases.
- Earnings per share were down due to one-time tax benefits the previous year, but results were otherwise in line with expectations.
- Nike saw strong growth across its brands, with the Nike brand up 18% and affiliates like Converse and Hurley up 32% and 38% respectively.
The document is the transcript from Nike's fiscal year 2009 first quarter earnings call.
The key points are:
- Nike's revenue was up 17% to $5.4 billion for the quarter, with 28 consecutive quarters of year-over-year growth. Gross margins were also up.
- Global futures orders were up 10% for the 31st consecutive quarter of increases.
- Earnings per share were down due to one-time tax benefits the previous year, but results were otherwise in line with expectations.
- Nike saw strong growth across its brands, with the Nike brand up 18% and affiliates like Converse and Hurley up 32% and 38% respectively.
2. Nike Inc.
2
Table of Contents
Company Description……………………………………………….………………………………………………………………..3
Financial Statement Ratios…………………………..……….……………………………………………………………………4
Ratio Analysis……………………………………………………………………………………………………………………….…...9
Trend Analysis………………………………………………………………………………………………………………………….13
Income Statement Analysis………..…………………………………………..……………………………………………….16
Balance Sheet Analysis…………………………………………………………………………………………………………….18
Statement of Cash Flows………………………………………………………………………………………………………….21
Statement of Stockholder’s Equity………………………………………………..…………………………………………22
Profitability………………………………………………………………………………………………………………………………23
Other Issues……………………………………………………………………….……………………………………………………26
Formal Recommendation………………………………………………...…………………………………………………....27
3. Nike Inc.
3
Description of Nike
Blue Ribbon Sports was founded on January 25, 1964 by Bill Bowerman and
Phil Knight, and officially became NIKE, Inc., on May 30, 1971. Originally, Mr.
Bowerman and Knight were selling running shoes from a Japanese manufacturer out
of the back of a van at track meets. To see how far they have come today as a
company is a prime example of what quality products, effective marketing, and a
successful finance plan can do. Today, Nike offers products in eight categories,
including golf, action sports, sportswear, women’s training, men’s training, football,
basketball, and running. They also offer different products sold by companies they
decided to purchase, such as Jordan, Converse, Chuck Taylor, One star, Star Chevron,
and Hurley. In addition, the company sells sports accessories and apparel, and markets
apparel with licensed professional and college teams and team logos. In 2012, Nike
struck a deal with the NFL agreeing to become the sole provider of apparel for all 32
of the league’s teams. This contract was for five years, and was valued at 1.1 billion
US dollars. Football is the most watched sport in the United States right now, and
when people turn their televisions on to watch a game, they notice the Nike swoosh on
every jersey. Nike sells its products to sporting goods stores, footwear stores, athletic
specialty stores, department stores, Nike-owned retail stores, and also internet
websites. Nike is headquartered in Beaverton, Oregon, which is about 55 minutes
away from McMinnville. We decided to report on Nike because it is a brand both
Drew and I wear daily. The quality of their products, their success along the way, and
the fact that they are a local company helped us decide to analyze the financial side of
Nike as a company.
Nike has also been very successful being able to advertise their products. For
me personally, Nike was always seen as the “Cool” brand to support, because we
always see our favorite athletes and teams supporting them. There is a scene in the
movie Friday Night Lights, arguably one of the best football movies ever made,
supporting Nike. The movie is based around high school football in the state of Texas.
One morning before practice, the star running back named James “Boobie” Miles
walks up to his backup, who he notices wearing Adidas cleats. Boobie tells him that
the reason the backup doesn’t have a girlfriend is because he is wearing the wrong
cleats. He says “Everybody knows the shoe is Nike. It’s all about them black Nike
cleats.” There is a scene later in the movie where the running back is seen coloring his
white Adidas shoes black with a sharpie marker. This shows the dominance Nike has
in the sports world and how effective they have been in marketing to the younger
generations
8. Nike Inc.
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Ratio Analysis
Profitability Ratios
Gross Margin Percentage represents the percent of total sales revenue that the company
retains after incurring the direct costs associated with producing the goods and services sold by a
DividendYieldRatio
DividendsPerShare/MarketPrice Per Share
DividendsPerShare $0.93 $0.93
Market Price PerShare $76.91 $60.70
DividendsYieldRatio 1.20% 1.53%
Book Value Per Share
Total Stockholder'sEquity/Numberof CommonSharesOutstanding
Total Stockholder'sEquity 10,824,000,000 11,156,000,000
# of CommonSharesOutstanding 692,000,000 716,000,000
BookValue PerShare $ 15.64 $ 15.58
9. Nike Inc.
9
company. Over the year, Nike’s Gross Margin Percentage rose slightly. In 2013, they had a
percentage of 43.59, and then in 2014 a percentage of 44.77. While the gain of 1.18 in
percentage is relatively small, it shows that Nike is improving in their profitability over this past
year.
Return on Total Assets is a ratio that measures a company’s earnings before interest and
taxes against its total net assets. This ratio is considered an indicator of how effectively a
company is using its assets to generate earnings before contractual obligations must be paid.
Nike had a slight increase of 0.45% on their return on total assets to put them at 14.68% in 2014.
This means that in 2014 Nike earns a return on 14.68% of the total assets employed.
Return on Equity measures a corporation’s profitability by revealing how much profit a
company generates with the money shareholders have invested. It is a good way to get a better
idea of the historic growth of the company. Nike improved their return on equity by 2.3% over
this past year. This is another indication of an improvement in the profitability of Nike over the
past year.
Net Profit Margin is the percentage of revenue remaining after all operating expenses,
interest, taxes and preferred stock dividends have been deducted from a company’s total revenue.
It is a great way of determining the effectiveness of a company’s ability of converting sales into
profits. Nike had a percentage of 9.82 in 2013 and a percentage of 9.68 in 2014, which is a slight
decline of 0.14%. This decline in percentage is nothing to worry about however. Being in the
mid-to-upper nine percentage points puts Nike in a good spot compared to their competition and
other large businesses.
Liquidity Ratios
Working Capital is the difference between current assets and current liabilities. Current
assets are the most liquid of your assets, meaning they are cash or can be quickly converted to
cash. Current liabilities are any obligations due within one year. It is also a good way for
investors to get an idea of the company’s underlying operational efficiency. Nike’s working
capital fell from 9.7 billion in 2013 to 8.669 billion in 2014. Having a high working capital isn’t
always necessarily a good thing. It can indicate that the company has too much inventory or they
are not investing their excess cash. Nike has nothing to worry about with the decline to 8.669
billion.
Current Ratio shows the proportion of current assets to current liabilities. It is used as an
indicator of a company’s liquidity. It also gives an idea of a company’s ability to pay back short-
term and long-term obligations. Unfortunately, Nike’s current ratio fell from 3.47 to 2.72 in
2014. It is nothing to panic about however. They are still well above 1.0, meaning that their
assets are greater than their liabilities.
Acid-Test Ratio measures the ability of a company to use its near cash or quick assets to
extinguish or retire its current liabilities immediately. Nike’s acid-test ratio fell from 2.98 to 2.29
in 2014. They are well above 1.0, which is generally the number that companies don’t want to
10. Nike Inc.
10
fall below. Their acid-test ratio is also similar to their current ratio, meaning that Nike is not a
company that is highly dependent on inventory to be successful.
Accounts Receivable Turnover is a measure of a company’s effectiveness in extending
credit and in collecting debts on that credit. It is used to measure how many times the company
turns their receivables into cash in a year. In 2014, Nike had an accounts receivable turnover of
7.78, meaning that they turned their receivables into cash roughly 8 times throughout the year.
This is a slight decline from 2013, where their turnover was at 8.12
Average Collection Period measures the number of days that it takes a company to collect
their accounts receivable. Nike went from 44.94 days in 2013 to 47.32 days in 2014, which
means that it is taking them a few extra days to gather all of their receivables.
Inventory Turnover is a measure of the number of times inventory is sold or used in a
time period such as a year. Nike’s inventory turnover was almost unchanged over the year. It
went from 4.15 in 2013 to 4.13 in 2014. Being at four could relate to the number of seasons in a
year. Nike has clothing apparel for spring, summer, winter, and fall, and need to have their stores
updated as the year goes on. It wouldn’t make sense for them to have their new rain jackets out
on display in the middle of summer, which provides the need for inventory turnover.
Average Sale Period measures the average number of days that it takes a company to sell
inventory. Nike’s average sales period is pretty similar over the two years. It went from 87.77 in
2013 to 88.33 in 2014, showing little change at all. This is to be expected because of the fact that
Nike’s inventory turnover is also similar at around four.
Operating Cycle measures the elapsed time from when inventory is received from
suppliers to when cash is received from customers. A company’s goal is to reduce the operating
cycle because it puts cash receipts in the company’s possession sooner. Nike went from 132.86
days in 2013 to 135.65 days in 2014. This is unfortunate because it means that they are receiving
cash at a slower rate now than they were in 2013.
Total Asset Turnover is a ratio that compares total sales to average total sales. It measures
how efficiently a company’s assets are being used to generate sales. Nike’s total asset turnover
increased slightly from 1.43 to 1.53 in 2014. Generally, it is a company’s goal to increase their
total asset turnover. This means that in 2014 Nike was slightly more efficient in turning their
assets into sales.
Debt ManagementRatios
Times Interest Earned is a metric used to measure a company’s ability to meet its debt
obligations. Due to the increase in interest expense, Nike’s Times Interest Earned fell from
11. Nike Inc.
11
142.26 in 2013 to 93.26 in 2014. While the decrease is a little frightening, being at 93.26 is still
high enough where Nike shouldn’t have to panic.
Debt to Equity Ratio indicates the relative proportion of shareholder’s equity and debt
used to finance a company’s assets. Nike’s debt to equity ratio increased from 1.57 to 1.66 in the
year 2014. This slight increase shows that Nike is increasing their financial leverage. The debt to
equity numbers of Nike means for every dollar from a shareholder the creditor will provide $1.57
in 2013 and $1.66 in 2014.
Equity Multiplier is a measurement of a company’s financial leverage. Companies
finance the purchase of assets either through equity or debt, so a high equity multiplier indicates
that a larger portion of asset financing is being done through debt. Nike’s equity multiplier rose
from 1.57 in 2013 to 1.66 in 2014. This slight increase is a sign that shows that Nike is
increasing its financial leverage.
CashFlow Adequacy
Cash Flow Yield is an overall return evaluation ratio of stock, which standardizes the free
cash flow per share a company is expected to earn against its market price per share. It is an
indication of how much of the assets are turned into cash. Nike’s cash flow yield slightly
decreased from 1.21 in 2013 to 1.11 in 2014.
Cash Flow to Sales compares a company’s operating cash flow to its net sales or
revenues, which gives investors an idea of the company’s ability to turn sales into cash. Nike had
a slight decrease of 0.0112 in their Cash Flow to Sales. In 2013, they had 0.1195 and in 2014
they had 0.1083 as their cash flow to sales.
Cash Flow to Assets measures how well a company is able to generate cash from its
current operations. Nike’s cash flow to assets was decreased slightly over the year. In 2013 they
had 0.172 and in 2004 they had 0.166. This was a small decreases of 0.006.
Free Cash Flow represents the cash that a company is able to generate after laying out the
money required to maintain or expand its asset base. It is important because it allows a company
to pursue opportunities that enhance shareholder value. Nike’s free cash flow decreased by
354,000,000 in 2014. It fell from 1,688,000,000 in 2013 to 1,334,000,000 in 2014. This was
caused by an increase in dividends and capital expenditures by Nike in 2014.
MarketPerformance
Earnings per Share The portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability. Nike’s
earnings per share improved from $2.71 in 2013 to $2.97 in 2014. This means that Nike has
made $2.97 for every common share outstanding in 2014. This increase helps improve Nike’s
market performance.
12. Nike Inc.
12
Price Earnings Ratio expresses the relationship between a stock's market price per share
and it’s earning per share. Having a high price-earnings ratio means that investors are willing to
pay a premium for the company’s stock-presumably because the company is expected to have
higher than average future earnings growth. Nike’s price earnings ratio improved by 3.17 and is
now up to 25.55 in 2014. This means that the stock is selling for 25.55 times the earnings per
share. This is another example of Nike’s market performance improving in 2014.
Dividend Payout Ratio quantifies the percentage of current earnings being paid out in
dividends. Nike’s dividend payout ratio decreased by 2.99% in 2014 and fell to 31.31%. There is
no such thing as a “right” dividend payout ratio, although the ratio tends to be similar for
companies within the same industry. Companies with ample growth opportunities at high rates of
return tend to have low payout ratios, whereas companies with limited reinvestment
opportunities tend to have higher payout ratios.
Dividend Yield Ratio measures the rate of return in the form of cash dividends only that
would be earned by an investor who buys common stock at the current market price. Nike’s
dividend yield ratio fell from 1.53% in 2013 to 1.20% in 2014. Having a low dividend yield ratio
is neither a good or bad thing, it just measures the rate of return earned by investors who bought
common stock at current market price.
Book Value per Share measures the amount that would be distributed to holders of each
share of common stock if all assets were sold at their balance sheet carrying amounts and if all
creditors were paid off. Nike’s book value per share pretty much stayed the same in 2014, with a
slight increase of $0.06 to put them at $15.64 book value per share.
Trend Analysis
14. Nike Inc.
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Column1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales 100% 112% 122% 133% 152% 151% 150% 164% 190% 207% 226%
Cost of Sales 100% 109% 120% 131% 146% 151% 146% 156% 188% 204% 219%
Gross Profits 100% 116% 125% 136% 160% 158% 162% 175% 193% 210% 236%
Operating
Expenses 100% 114% 121% 136% 161% 166% 171% 172% 191% 211% 236%
NetIncome 100% 128% 147% 158% 199% 157% 202% 225% 235% 263% 284%
R & D Expenses N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
A trend analysis is a side-by-side comparison of two or more years of a
company’s financial statements. For our graph we analyzed five accounts over a
ten year period. The accounts we analyzed are as follows; sales, costof sales, gross
profit, operating expenses, and net income. Graph one looks at the data as
numbers, while graph two looks at the data as percentages.
Graph one gives us the data in numerical form. In general, over the ten-year
period the company has experienced solid growth. One account that stands out is
the net income. It increases steadily every year except 2009, (1,487) but Nike
responded well in 2010 increasing their net income to (1,907.) Another account
that catches attention is gross profit. In 2004 the account was at 5,252, by 2014 it
had increased by 7,194 million dollars to 12,446. That is a huge amount of growth
even over a ten-year period.
Graph Two shows us the data in percentage form. When observing the chart
there appears to be only one outlier, the net income account shows a severe spike
in 2009, net income decreased by 42%. One contributing factor to this may have
100%
125%
150%
175%
200%
225%
250%
275%
300%
2004
2005
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2009
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2012
2013
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Sales
Cost of Sales
Gross Profits
Operating
Expenses
Net Income
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been the increase in operating expense, by five percent. Graph two does a better
job than graph one at showing how the changes affect specific accounts.
Income Statements
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Nike Inc.
Comparative Income Statement
Horizontal Analysis(All numbersin millions) Increase(Decrease)
2014 2013 Amount Percentage
Revenues 27,790 25,330 $ 2,460 9.70%
Cost of sales 14,820 14,279 $ 541 3.70%
Gross profit 12,446 11,034 $ 1,412 12.79%
Demandcreationexpense 3,031 2,745 $ 286 10.41%
Operatingoverheadexpense 5,735 5,035 $ 700 13.90%
Total sellingandadministrative expense 8,766 7,780 $ 986 12.67%
Interestexpense (income) $ 33 $ (3) $ 33 110.00%
Otherexpense (income) $ 103 $ (15) $ 118 786.66%
Income before income taxes 3,544 3,272 $ 272 7.20%
Income tax expense 851 808 $ 43 5.30%
NET INCOME FROMCONTINUEDOPERATIONS 2,690 2,464 $ 227 9.21%
NET INCOME (LOSS) FROMDISCONTINUED
OPERATIONS 0 (21) $ 21 100.00%
NET INCOME $ 2,690 $ 2,454 $ 236 9.60%
Nike Inc.
Common Size Income Statement
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Vertical Analysis(All numbers in millions) Common Size Percentage
2014 2013 2014 2013
Revenues 27,790 $ 25,313 100.00% 100.00%
Cost of sales 14,820 14,279 53.32% 56.40%
Gross profit 12,446 11,034 44.78% 43.59%
Demandcreation expense 3,031 2,745 10.90% 10.84%
Operatingoverheadexpense 5,735 5,035 20.63% 19.89%
Total sellingandadministrative expense 8,766 7,780 31.54% 30.73%
Interestexpense (income) $ (33) $ (3) (0.10%) (0.01%)
Otherexpense (income) $ (103) $ (15) (0.04%) (0.06%)
Income before income taxes 3,544 3,272 12.75% 12.93%
Income tax expense 851 808 0.03% 3.19%
NET INCOME FROMCONTINUEDOPERATIONS 2,690 2,464 9.68% 9.73%
NET INCOME (LOSS) FROMDISCONTINUED
OPERATIONS 0 (21) 0.00% 0.08%
NET INCOME $ 2,690 $ 2,485 9.68% 9.82%
Income Statement Analysis
Looking at the horizontal analysis of the income statement, we see that
revenue increased by 9.7% over the fiscal year. To get this increased revenue, Nike
ramped up production and increased spending across the board. We noticed that
every expense account increased during this time period. Nike increased revenue
more than they increased spending, which resulted in an increase in net income.
The common size or vertical comparative income statement shows how
much of Nike’s revenue was lost in expenses from 2013 to 2014. One accountthat
stands out is costof sales. Over the fiscal year, it decreased by roughly 3%. This
would imply that Nike somewhere along the production line became more
efficient, or were able to cut their costs. Nike spent 3,031,000,000, or 10.9%, of its
generated revenue on demand creation. This is clearly an area of emphasis for
Nike. I just saw a commercial for Nike that was quite elaborate and exceeded one
minute long in length. This must have been very expensive to produce, but clearly
they see the benefit of doing it.
Balance Sheet
Nike Inc. Comparative Balance Sheet
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Horizontal analysis is the process ofanalyzing financial data by computing
the dollar change in year and percentage change within a financial statement.
While it is nice to see the amount in which the given account changes the
percentage change puts the data into a better perspective for how the change
affected the account.
Our Horizontal analysis shows from the years 2013-2014 showed Nike’s
total assets increased from 17,584,000,000 to 18,549,000,000, an increase of 5.4%.
This increase is a sign of a healthy company that is willing to expand their
business. One change that sticks out on the liability side is the increase in income
taxes payable from 98,000,000 to 432,000,000. That is a gigantic increase of
340%. This increase must relate to the increase in total assets. My best guess is
Nike bumped itself up into a higher tax bracket which helped cause this jump in
taxes payable.
When observing our vertical analysis, one change really stands out is the
decrease in cash and cashequivalents. They go from 3,337,000,000 in 2013 to
2,220,000,000 in 2014. What really makes this interesting is that the total assets
actually increase. It appears Nike invested some cash back into itself by purchasing
more inventory, and also investing in property, plant, and equipment. Nike made
these investments with the intention to increase revenue.
Statement of Cash Flows
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In both 2013 and 2014, Nike’s main sourceof cash came from their
operating activities. This was due to purchases of short term investments and
repurchases of common stock. 2014 didn’t have much change from 2013, as both
years had cash provided by operating activities a little over 3 billion. However, that
is a huge jump from 2012, where cash provided by operating activities only
provided them with roughly 1.8 billion. Short term investments also made a large
increase. As of now, they are close to 3 billion, where back in 2012 they were a
little less than 1.5 billion. It has almost doubled in these two years. This increase in
cash provided by operating activities means that Nike has been producing more
revenue leading to cash. With this new money, they are able to pay off expenses
and debtthat they owe. This helps improve their debt-to-equity ratio which allows
them to improve financially as a company. They have also improved their total
asset turnover which has provided them with options on how they can improve as a
company. Ways they have been taking advantage of this increase in cash provided
by operating activities is by producing new products and expanding their stores. By
doing this, they are staying up to date on the latest trends and fashions, which
keeps them as an appealing option for customers. This increase in cash also helps
them turn over their inventory as much as they can to create sales. As of now, they
are turning over their inventory approximately four times a year. This puts them in
a good position because it allows them to make their changes around the four
seasons:summer, fall, winter, and spring. Different times of the year require them
to have different items in stockin order to maximize their sales. By renovating
their current stores, expanding the amount of stores they have, and improving their
inventory, Nike is using their increase in cash to improve their company. Due to
the increases since 2012, Nike is in good shape moving forward financially.
Statement of Stockholder’s Equity
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Nike’s bookvalue per share increased by 0.06 in 2014 to put them at $15.64.
This means that $15.64 is the amount that would be distributed to holders of each
share of common stockif all assets were sold at their balance sheet carrying
amounts and if all creditors were paid off.
Nike’s stockholder’s equity fell from 11,156,000,000 in 2013 to
10,824,000,000 in 2014. As a result of this, Nike’s debt-to-equity ratio increased
by 0.09 to 1.66 in 2014. The debt to equity numbers of Nike means for every dollar
from a shareholder the creditor will provide $1.57 in 2013 and $1.66 in 2014 and
that they are improving their financial leverage. In 2013, Nike spent $1,647,000 on
repurchases of common stockand $2,628,000 in 2014. In 2013, Nike repurchased
37 million class b common stockat a costof $2,628,000. In 2014, Nike
repurchased 29 million class b common stockat a costof 2,534,000. Nike’s
stockholder’s equity has remained pretty close over the past two years, meaning
that their transactions haven’t been hurting the company.
Nike does not currently show any treasuring stockon their balance sheet.
However, if they were to have it, it would be in case they need to make extra cash
should it be needed.
Profitability
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Nike’s four major lines of business include footwear, apparel, equipment,
and other. Due to their many resources, they are able to sell their products all over
the world. Their main geographic areas that the company operates in include North
America, Western Europe, Central and Eastern Europe, Greater China, Japan, and
emerging markets.
Footwear
As you can see from the chart, footwear is Nike’s most profitable line of
business, bringing in 57.8% of the profit. In 2013, the footwear department made
$14,635,000 which was 57% of the total revenue for Nike that year. The results
were the same in 2014, with Nike bringing in 15,210,000, which was
approximately 58% of their total revenue. Nike has made it an emphasis to sponsor
some of the top athletes in the world. They are currently in year two of a five year
deal with the NFL that gives Nike the rights to create the jerseys and cleats that the
teams use. As a result of this, many younger athletes want to wear Nike cleats,
because they see their favorite football player wearing them too. Japan and Europe
are the two places where Nike struggles most with their footwear sales. Part of this
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is due to their competition being based out of these areas. Adidas is based out of
Germany and Mizuno is based out of Japan, which puts Nike at a disadvantage in
these areas. However, Nike still does fairly well in these areas, which is why they
continue to put stores and operate in these geographical areas of the world.
Apparel
Apparel is Nike’s second most profitable line of business, bringing in
approximately 31% of their revenue. Nike is the top ranked apparel company in the
world. In 2013, Nike brought in $7,491,000 in apparel revenue and $8,120,000 in
2014. This improvement can also be partly due to their sponsorship with the NFL.
Nike gets to create all fan gear for NFL teams, meaning that they get part of the
profit when people order a sweatshirt of their favorite football team. Nike’s top
two geographical locations for their apparel products are North America and
Western Europe, bringing in over 50% of all apparel revenue. Reasons for their
success being much greater in these areas compared to other areas of the world
could be due to their competition. Socceris a very popular sportglobally, and
Adidas is one of the biggest international brands for soccerproducts. With Adidas
sponsoring many international soccerclubs, it allows their products to be
purchased in more areas throughout the world. Nike still does well globally, but
their dominance in North America could be due to the fact that they are based out
of the United States and have the sponsorship rights to the most popular sporthere,
which is football.
Equipment
Nike’s most successfularea of equipment revenue is once again North
America. In terms of revenue, equipment is the fastest rising percentage wise of the
four major lines of business. Since 2012, equipment sales have increased over
40%. This could be due to their new sponsorships in college and professional
sports and also improved equipment. Nike produces more money than any of their
competition, meaning that they have extra to spend on making advancements to
improve their product. Another part of this could be their marketing strategies. By
sponsoring professional and collegiate athletics, it is leading to their equipment
being purchased at a higher rate. People see their favorite athlete using a certain
Nike productwhich leads them to want to choosethat rather than a similar item
from another brand. Equipment only brings in a little more than 5% of Nike’s total
revenue, but it is improving at a steep pace.
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In terms of revenue, Nike is dominating their competition. They are the top
footwear and apparel brand in the world, which are also the two most profitable
lines of business. Founded in the United States, their most successfulgeographical
area is North America. They sponsormany professional and collegiate teams here,
which leads to their products being purchased more than any other brand here.
Globally, they still do very well, competing against brands from different areas of
the world. It is expected for footwear to bring in more revenue than apparel
because they have less competition to deal with. With apparel, there are trends and
fashions that can change throughout the world. There are many more options out
there for people who are trying to dress in different styles to compete with.
However, footwear sales are straighter to the point. Nike is on top of both footwear
and apparel products, meaning that their plan of attack has been working and still
is.
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Other Issues
In the letter to the shareholders, current Nike CEO Mark Parker states “Our
brands have never been stronger, and we’ve never had greater competitive
separation in the marketplace.” In the fiscal year 2014, revenues grew 10% to
reach 27.8 billion, Gross margin increased 120 points, despite a rising cost
environment, and the earnings per share grew 11%. These increases should give
shareholders comfort in knowing that the company is never satisfied with where
they are at and are always committed to growing and improving their business.
Nike possesses the ability to withstand an economic downturn. During the
recession of 2008, net income dropped by42%. However, by the next year, they
were able to gain back all the lost income plus 3%. It is amazing that they were
able to recover so quickly. Most companies wouldn’t survive losing 42% of their
net income, let alone stay in business. From 2009 to 2014, Nike’s revenue
increased by 9 billion dollars. The CPA firm reviewed the financial statements of
Nike and its subsidiaries were completed in accordancewith generally accepted
accounting principles, or GAAP. One of the ideas presented in the letter that I was
not aware of was the fact that Nike provided high performance jackets at the winter
Olympic Games in Sochi. These are the top athletes in the world using Nike
products, which looks great for their brand. Another was that they developed three
new innovative soccerboots that were given to players to wear in the 2014 World
Cup played in Brazil. This is a great marketing scheme because if you put the
boots onthe best players in the world in the most high profile tournament you are
going to create some serious demand. One theme I took away from this letter is
how involved Nike is internationally. They are becoming more and more popular
in European and Asian markets. Overall, I would say that I would agree with the
letter. They are on top of the sports apparel market, and plan to continue growing
to remain on top.
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Formal Recommendation
After doing such a detailed analysis on Nike, we have become much more
familiar with the inner workings of the financial side of the company. We were both
knowledgeable about their products because we are both Nike supporters, but learning
about their finances has allowed us to recommend Nike as a company to invest in,
work for, and sell to as a supplier.
Based on the steady growth that Nike has experienced, we would recommend
investing in this company. During the economic downturn of 2008, Nike’s net income
dropped a whopping 42%. The following year, they were able to gain all of the lost
income back plus 3%. This should give potential investors comfort in knowing the
company has shown it can make it through tough times. This example gives us
confidence to recommend investment in this stock. While we do believe Nike holds its
value, having a common stock price of $131 isn’t something we would bet to strike
rich on, but we would expect the stock to grow consistently over time because that is
what history has proven to us.
Nike is the hottest name is sports apparel and has been for some time now.
They attract some of the best young minds in the business. They are able to do this by
being innovative and offering great benefits to their employees, making them a very
attractable job. These benefits include accident, health, and life insurance, discounts
on purchase of stock, and if you wish to continue your schooling while at Nike they
have a tuition assistance program. The tuition assistance program would be very
enticing for me because I would be able to continue my schooling while working for
the best sports apparel company in the world. Another cool benefit the employees
have access to is the Nike Employee Store. Having been there a couple of times
myself I can tell you it is the real deal, nearly 40% off everything in the store. This is
another example of how Nike takes care of its employees. We would recommend
working for Nike because we see it as a great company to have on your résumé.
With Nike being as large and popular as it is it would be very enticing to want
to be a supplier for them. This could have positive benefits for your company having
exposure next to the Nike name. According to the results of our acid-test ratio it is
safe to say you have a good chance of receiving payment consistently. One thing I
would caution against with a big company like Nike is letting them be too much of
your business. If they were to walk away you would lose the majority of your sales,
crippling your company. I would feel comfortable giving them 20% of my total sales
because if that number is closer to 50% it would be extremely difficult to pick those
sales back up.