Question

Conduct a financial review of Nike's company.

This review must include an analysis of key financial ratios over the past 3-5 years to examine any important trends.

You must also compare the company’s financial performance to its competitors and the overall sector/industry in which it competes.

write as much as you can

Answer 1

ABSTRACT: Nike's financial statement was analyzed and studied thoroughly to understand Nike's financial performance. That financial statement includes balance sheet income statement and cash flow statement. The latest company annual report data was compared with the data from last five years from 2010 to 2015 to gain an understanding of company's performance, which was shown in the trends analysis. According to the analysis data recommendations have been given to ensure the company's revenue and reduce liabilities. All the recommendations and suggestions were made according to key ratios which will directly influence company's performance. FINANCIAL PERFORMANCE: An important aspect of financial performance evaluation is benchmarking benchmarking compares an organizations current performance against its own previous performance and its competitors and also evaluation results are important for the investors, managers, creditors, and auditors and financial analysis Financial performance of a company can be analyzed by the trends over a period of time to understand the trends which its is necessary to analyzed series of financial statement over a specific period of time. The income statement shows whether organization is selling their product and services less or more then cost of operations. The balance sheet is the snapshot of the company's financial position which shows values of assets purchased and liabilities owe to others at the end of financial year TREND ANALYSIS: The trend analysis is analyzing series of account data over the period of time, base lining 100 as a selected year. That is analyzing similar figure in series of company account for understanding decrease or increase of organizational financial status TREND ANALYSIS OF REVENUES : REVENUES. 2010. 2011 2012 2013 2014. 2015 DOLLAR IN MILLION. 19014. 20862. 24128. 25313. 27799. 30601 2010=100 100. 109.7 126.8. 133.1. 146.2. 161 The trends shown in the table 2 increased in years 2011,2012,2013 2014 2015 by 9.7,26.8.33.1,46.2 and 6 while net income increased in year by year such as 11.8,16.5,29.6,41.2,71.6.the net income percentage of the company has increased rather than revenue which might be affected due to government tax policy, inflation rate company policy, and world economy. RATIO ANALYSIS : The key steps of financial ratio analysis are as follows 1. 2. 3. Identify users and their information needs Select and calculate appropriate ratio Interpret and evaluation the results. KEY RATIOS: In this study several key ratios to understand position of Nike's productivity are discussed such as measures of liquidity.profitability investment and overall performance. These ratios could influence the financial well being of the company PARTICULARS 2014. 2015. PERCENTAGE OF CHANGE Net profit margin 0.09% 0.10%. 11.1 Debt to equity ratio. 0.71 0.70. Current ratio. 2.5:1. -7.4 Working capital turnover 2.7:1 3.2. 19 $3.35. Quick ratio. 3.8 1.8 $3.79. 18.75 5.26 3.8 Earnings per share Assets turnover