A Financial Ratio Quarterly Trend Analysis of Nike, Inc.

NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf

Ever since the 80’s the brand Nike has practically owned the sports merchandise and clothing market. For as long as I can remember Nike has always made my favorite shoes and clothing. This has continued throughout my life up until today, I have easily accounted for over two thousand dollars worth of sales going to the company. Thinking about this made me really question whether my money is going to the right place. According to Nike.com , there overall goal is to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for there shareholders (http://www.nikebiz.com/company_overview/). If there promise

This report is part of Introduction to Business subject (MGT1101). The topic is Nike Inc. This report was written to give the reader an insight into Nike Inc. This report was written to show the reader different aspects of the company, how it was established, what it has to offer and some general knowledge of the company that may be interesting and useful. In this report we will take you through Nike’s journey in becoming such a successful and well known brand and how it maintains its standards and keep the company alive also the struggle of competing with other heavy weight companies in the same industry.

Nike is a company that has thoroughly embedded itself into the psyche of people around the world. It's a company that started with humble origins from selling footwear in the basement to becoming the behemoth in the athletic industry. Bill Bowerman, University of Oregon track & field coach, and Phil Knight, middle-distance runner under Bowerman co-founded Nike. Nike was first established as Blue Ribbon Sports in 1964 as a partnership and the name Nike was officially adopted on May 30, 1978. The infamous Nike Logo - Swoosh, was created for a fee of $35 by Carolyn Davidson, a graphics design student. In 1980, Nike becomes a publicly traded company with the completion of its Initial Public Offering of 2,377,000 shares

Everyday, billions of people look down at their feet and squeeze them into a pair of shoes. For probably most of those people in America, when they look down at their feet, they see a shoe with a swoosh on it. This swoosh belongs to no other than one of the most popular sneaker companies, Nike. I decided to look further into this popular shoe company's success. It turns out Nike isn't even one of the oldest shoe companies, but it is less than 60 years old. Nike had to figure out how to become better than just an ordinary sneaker company.

In 1962, Blue Ribbons Sports was established by Bill Bowerman & Philip Knight, became Nike, Inc. on May 30,1972. Nike, Inc. established the Nike swoosh logo and the “Just Do It” trademark. Nike. Inc., is one of the largest publicly traded sportswear, athletic shoes & apparel company with revenues of $19 billion in 2010 (3). NIKE, Inc. headquartered is located in Beaverton, Oregon. NIKE, Inc. sells merchandises through distributors, licensees, and subsidiaries in 120 countries globally. NIKE, Inc. has experienced generous amount of financial and marketing success since the 1960s (Wokutch, 2008). This why I chose Nike Inc., (NYSE: NKE) because of the substantial growth throughout the years.

The price of Nike’s common stock has gone down in the past five years. It was at its highest point in 1997 and next highest in 1999.

Nike’s stock market worksheet shows us in general that their financials are in a rising trend. First, their stock value today is 58.43 (positive). In addition, the analysts recommendations are that 14 recommend to buy shares, 5 recommend to hold shares, and 0 recommendations to sell them. Thus, our group’s recommendation is to invest in Nike as a result of the terms above.

For this financial statement analysis project, I have chosen to compare Nike and Under Armour. There are several ratios that can give an overall idea of how a company has performed in comparison to another company with in the same industry, but before I jump into all of the math I would like to give a little bit of history on these two rival companies.

The Nike journey began in 1964 by Stanford student Phil Knight, following a semester long project to devise a small business plan. Knight was interested in quality running shoes that would give athletes a competitive edge. The Nike company, originally named “Blue Ribbon Sports,” operated as a distributor for Japanese shoemaker, Onitsuka Tiger. Eventually, Knight and his track coach, Bill Bowerman, developed their own line of footwear they would call Nike. Nike was the name of a winged Greek goddess of victory. The Nike “Swoosh” trademark and logo was a graphic design created in 1971 by Caroline Davidson. The first Nike footwear was released in 1972. The company not only produces quality athletic shoes, but also produces a variety of

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

However during the last reported years the company kept a stable reserve of cash and increased its short term investments especially in the last year from 5.16 to 8.78 of total assets. While Nike had decreased gross receivable over the years and from 23.1 in FY 08 to 22.6 in FY 09 of total assets, it considerably increased its provisions for doubtful accounts. This might be a precautionary measure on part of the company in the face of the financial crisis the occurred in the last reported year, which eventually resulted in decreasing the company’s net receivables from 22.4 to 21.7 of total assets in FY 09. Nike’s inventory has been slightly fluctuating over the reported years. The clear decrease in the company’s inventory in FY 09 cannot be explained by more sales as sales grew by only 2% as seen from the income statement. Therefore, the less inventory in the last year might be caused by the Company’s slowing down of its manufacturing process for fear of not being to sell its finished goods due to the

As one of the leading companies in the athletic shoe industry, Debel has experienced success in many areas. Debel has thus far successfully differentiated themselves from other competitors. Many players in the industry seemingly began with a strategy of differentiation but suffered from tunnel vision and focused mainly on the quality of shoes being produced. To combat other differentiation focused companies in the market place, Debel has invested in not only producing high quality shoes, but also a wide range of model for consumers to choose from (488), two celebrity endorsements (Oprah Letterman and LaBron Game), and traditional marketing and retailer support. The financial outcomes of Debel’s decisions will be discussed in the following text.

Similarities & Differences: Within the financial statement of Nike, Inc. there are tremendous similarities due to the consistency as well efficiency of the conduction of business. However, with these similarities is a fair deal of differences due to economic stability as well as the adoption product ideas and innovative methods that aid Nike to continue for the better of the company: by reaching new levels of sustainability as they enhance product performance, by developing, more meaningful connections with consumers, and by presenting their products in compelling experiences at retail. The annual reports of 2010 to 2014 clearly distinguish the letter to shareholders in the same placement but the content with each year are not similar by any means; within 2010, they created six new strategic geographies to focus their effort where passion and culture of sport are strongest. Nike pushed forward an aggressive retail agenda in store and online. Revenue at $19 billion the previous year went down 1 percent under EPS and future orders. Their income from other operation contributed more than $2.5 billion in revenue and generated $2.8 billion in free cash flow from operations and had $5 billion in cash and short-term investments on their balance sheet. Revenue from direct to consumer increased 12% to near $2.5 billion. Gross margins came in at 46.3 percent for the year. That was the year of the World cup, whereby they showed tremendous acceleration they generated in the back of

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”