FIN-350 Financial Analysis Outline

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Grand Canyon University *

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Finance

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Jan 9, 2024

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Financial Analysis Project Financial Analysis Project Andrew Schneekloth Grand Canyon University: FIN-350 Prof. Rodriguez October 15, 2023 1
Financial Analysis Project Financial Analysis Project The purpose of this paper is to analyze an annual Securities and Exchange Commission (SEC) report for Nike, Inc and evaluate their strengths, efficiency, and effectiveness. Nike, Inc is a multinational corporation which is known worldwide for their shoes, apparel, and sports equipment. Their mission, “is to bring inspiration and innovation to every athlete in the world, which includes the belief that if you have a body, you are an athlete. We aim to do this by creating groundbreaking sport innovations, making our products more sustainably, building a creative and diverse global team and making a positive impact in communities where we live and work” (10-k Forum). Nike, like any other company, faces challenges and has to figure out different types of strategies to keep the company growing in an upward trajectory. A challenge that Nike faces would be the competition and dealing with marketing the company on social media where negative publicity can be amplified. One of Nike’s main strategies is to “keep achieving long-term revenue growth by creating innovative must have products” (10-k forum). Nike has been doing this by increasing their speed and swiftness to advertise and build connections with their customers. In 2020, they announced a new digital phase of the consumer direct offense strategy called consumer direct acceleration. This new strategy should align with more product creation, focus more on the wants and needs of the consumer, and will use more in-depth analytic practices to gather more information in order to move forward in the digital transition of the company. Nike believes this approach will accelerate growth and make the company more efficient as a whole. Overall, Nike has proven year and year again why they are one of the top companies in the world using different strategies to increase connections with consumers as well as growth of their overall business. 2
Financial Analysis Project Stock Price Trends Include a visual representation of the stock price trends. Discuss recent trends in the company’s stock price . (2) The graph below shows the trajectory of Nike, Inc in a 5-year span of time starting in 2016 at an investment of $100 and ending in 2021 with the total investment at $260 a increase of $160 over the 5 years. In 2019, was when the investment started increasing at a fast rate while at the same time S&P 500 APPAREL started to decrease. Nike is a part of DOW JONES US FOOTWEAR INDEX because Nike is a part of DOW JONES the price and return of their stock has a substantial effect on the index. Evaluation of Efficiency and Effectiveness (3) Provide an introduction for this section. Liquidity Liquidity is the ability of a firm, “to meet short-term obligations as they come due” (Melicher, R.W., et al. 2019). One measure of liquidity is the current ratio. The current ratio is calculated by dividing the firm’s current assets by their current liabilities. Include a sentence for 3
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