Capital Structure

The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.

            By the year 2000, Nike had sold $12 billion dollars of merchandise.  The stocks have steadily rose until the 2000’s when sales began to sky rocket and stocks have soared ever since ("Nike History and Timeline.”).

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

Using these figures, we can now find the market value of Nike Inc., and the company’s capital structure.

Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and

Nike was introduced in 1971, as a small organization which has grown into a multi-billion organization, as one of the top sellers of sports apparel as well as having endorsements.

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.

Every year thousands of stocks are brought and sold. This buying and selling of stocks stimulates the economy while maintaining a healthy relationship between buyers and sellers. Nike is a corporation that operates in the Textile Apparel Footwear and Accessories industry. Nike offers common stock and the purchasing price of the stock was $123.46. Nike has promoted its products through commercials that show famous athletes wearing the brand.

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.

I believe this makes Nike a better investment because it leaves Nike with more revenue remaining after all operating expenses, interest, taxes, and dividends are taken out. Also in the same fiscal years Nikes return of equity was exceptional with a percentage of 27.82% compared to Under Amours return of

Whether you’re on the field, in a classroom or walking down the street you will always find the famous Nike Swoosh practically everywhere you go. Forbes ranks Nike as the 18th most valuable company in the world being worth roughly $26.3 billion dollars. Nike was initially founded back in 1964 by Bill Bowerman and Phil Knight but under a different name, Blue Ribbon Sports. Phil Knight was a track athlete at the University of Oregon and Bill Bowerman was his coach. Blue Ribbon Sports was converted into Nike on May 30, 1971 and was named after the Greek goddess of Victory, Nike. The company is the largest sports equipment and apparel manufacturer in the world due to its high quality and attractive merchandise.

Nike, Inc. is an American multinational corporation which is headquartered in the Portland metropolitan area Oregon, Unites States. Nike designs and manufactures its products and is also involved in marketing and sales of its products like sports equipment, apparel, footwear and accessories. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipments, with excess revenue of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, Nike has worldwide employed more than 45,000 people. In 2014, Nike was valued at $19 billion and it was the valuable brand in its category.

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

Nowadays, Nike business is maturity. These styles, different prices and multipurpose products have attracted thousands of runners. Nike is a very famous sport brand; everybody in the world may know Nike. Nike business is in all around the world which include Asia, America and Europe. Nike has its own potential and loyalty customer. The total assets of Nike have been increase every year.

NIKE, Inc. (Nike) is a publicly traded American multinational company in the sportswear and apparel industry. In 2016 Nike Brand sales covered 47% of total revenue in the U.S. market and 53% of the market internationally. These figures show they are clear market leaders over their main competitors Adidas, Under Armour and Puma. For the fiscal year 2016; total revenues were a record high $32.4b and net income was $3.76b, up 6% and 15% respectively from 2015, showing a very strong financial performance. As of May 31st 2016, Nike consists of 70,700 globally based employees and operates through 1045 retail stores spread across 51 countries, with the headquarters located in the US state of Oregon. (Nike Annual Report, 2016)