Running head: FINANCIAL STATEMENT ANALYSIS: NIKE INC. Financial Statement Analysis: Nike Inc. Name Course Date 1 FINANCIAL STATEMENT ANALYSIS: NIKE INC. 2 Financial Statement Analysis: Nike Inc. Introduction The present paper summarizes the main results derived from the analysis of the financial statements of Nike Inc. I have selected this company considering how it is a well-known company not only in the United States but worldwide. Together with Adidas, the company leads the footwear and sports apparel industries. ( Molthan- 2014). Analysis of the net income statement Net income The net income reported by the company as per the latest annual report was of $1.93 billion (Nike, 2018). Such a net income represents a decrease of 54.4% compared to the net income reported by the company in 2017 ($4.24 billion). The observed reduction of the company's net income is the result of the substantial increase in both the cost of goods sold and the selling, general and administrative expenses. In this sense, even while the net revenue raised by the company had increased by 5.96% in the past year, the cost of goods sold and the selling, general, and administrative expenses had increased by 7.36% and 8.97%, respectively. As indicated above, the company’s net income has decreased by 54.4% in the past year as a result of the increase of both the cost of goods sold and the selling, general, and administrative expenses. Such a substantial decrease in the net income may potentially have ...
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