Financial Analysis: Nike

3969 WordsJan 8, 201316 Pages
| Term Project 1 | Nike Inc. | | Author | | | Table of Contents NIKE Inc. 3 Analyzing Nike’s 10-K 4 Outside information about company and the industry: 8 Analyzing Financial Strength of Nike 12 Broad Audit Plan: 14 Appendix 18 Reference: 18 NIKE Inc. Nike is an American multinational organization which has worldwide presence and their principal business is design, development and worldwide marketing and selling of high quality of footwear, apparel, equipment, accessories and services. It is the largest provider of athletic shoes and sports equipments worldwide. It is headquartered in Washington County, Oregon in the USA. It was founded way back in 1964 as Blue Ribbon Sports by Phil Knight and Bill…show more content…
Nike’s independent suppliers and contractors buy these raw materials to manufacture footwear, apparel and other equipments in bulk. Most raw materials are purchased by suppliers and contractors from the country of manufacturing and hence Nike has limited control over it. This is a difficulty Nike faces managing its suppliers and contractors. d. Nike is the leading company within its industry ahead from Adidas, Reebok, Puma and few others of its competitors. Sales: Total revenues for the year stood at US$ 24128 million with North America Region contributing highest at US$ 8839 million followed by Western Europe and emerging markets such as countries like Brazil, India and other Asian countries and central China contributing almost US$ 2539 million at third place. Footwear category was the highest contributor to overall sales at US$ 13426 million followed by apparel at US$ 6336 million and equipment business at US$ 1202 million. Assets: Total assets rose by 3% during 2011-12 and stood at US$ 15465 million. Main contributors to total assets were Inventories of US$ 3350 million and accounts receivables at US$ 3280 million. Cash and Fixed assets followed these two in assets category and were the third
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