Financial Analysis: Nike Vs. Adidas

4709 WordsMay 1, 201119 Pages
Alex. U/GSU EMBA Financial Reporting Comparative Financial Analysis Nike Inc. vs. Adidas AG Submitted to: Dr. Ismail Gomaa By: Ghada Mahmoud Saafan 1/1/2010 CONTENTS Contents ........................................................................................................................................................................2 Methodology: ................................................................................................................................................................3 Nike Inc. .........................................................................................................................................................................3 Income Statement-Common Sized:…show more content…
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

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