Financial Analysis of Nike

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Business Finance

Description

Prepare and present a comprehensive analysis of a publicly traded company.My group chose Nike, so we need to analyze it financial standing.The objective of this analysis should be to make a recommendation whether or not to invest in the company. You may issue a buy or a sell recommendation.

Provide a Debt Analysis of Nike. Provide numbers to back up your theory and create power point slides to present the idea of where Nike stands financially.

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Explanation & Answer

Attached.

Financial report
Nike company

Revenue





Increased 13% compared to the last quarter (Nayak, 2017).
Previous revenue was up to $ 8.6 billion

The current revenue is at $9.8 billion
Diluted earnings per share for the fourth quarter rose to 15%

Stock report
• Authorization of new for year, $15 billion program to repurchase shares of
NIKE class B common stock (Childs & Jin, 2018).

• An anticipation of over $ 12 bullion is also predicted in the year 2019.
• The new stock program commences in the next financial year

Income statement review











Based on the 13% increase to 9.6 billion, the amount can be equated to 8% currency neutral basis.
Converse revenues were $512 million, down by 14 percent on a currency neutral basis.
Gross margin increased to 44.7%
Selling and administrative expense increase to 17% and $3.1 billion (Li, Wong, Leung, Yip & Tian, 2015).
Demand creation was $983 million.
Operating overhead expense increased 14% to $2.1 billion
Effective tax rate was at 6.4 % compared to the last year 13.7 %
Net income increased to $1.1 billion.

Diluted earnings Increased to 15% to $0.69.
Diluted earnings per share fell to 2% decline.

Balance sheet review and share purchases
Inventories for Nike were $ 5.3 billion up 4 percent from last years same time.
Cash and equivalent, short term investments were $5.2 billion. $934 billion
lower than the previous year (Mason & Ardissono, 2017).
Nike has repurchased during the last year a total of $23.1 billion.
The company plans to repurchase $15 billion...


Anonymous
Awesome! Perfect study aid.

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