Identifying Long Term Trends

In this industry, the financial factors such as valuations in capital, stock market, exchangerates of different currencies, bank interest rates etc affect the functioning of the industry.Financial decisions cannot be taken if the above mentioned factors are ignored and theindustry has to be well versed with the above mentioned factors.

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.

In this project, I have chosen to provide a microeconomic-based analysis on NIKE Inc. The study will include the analytic overview of the general market of Nike brand, as well as the information about the goods, service, and areas of operation. Throughout the research of this paper, I will discuss the cost of production, as well as the supply and demand in relation to microeconomics. Moreover, we will look at how supply and demand of this market regulates the equilibrium of quantity and price, as well as the economical efficiencies where the surplus for consumer and producer is maximized. Information will be explored to understand why businesses and people make decisions and how those actions we can be used for strategy. To conclude this research paper, I will take a deeper look and make recommendations for the future profitability, future growth and sustainability of NIKE Inc. (Hubbard & Obrien, 2015).

Economic factors – which include interest rates, economic growth, exchange rates, inflation and taxation changes (Nieman, G; 1998). The change the economy can have a major impact on the behaviour of the business. For example: inflation may cause a higher wage demand from employees (Herrigton, Kew & Kew; 2009).

For instants, organisation structures of generating revenue might change if government impose new tax policy (Kotler, 2005). Economic involves overall economic performance in the country. Economic factors can heavily impact on company and sometimes may cause long-term effect. For instants, if rise in an inflation rate would affect the way company to put prices on their products and services. This also can effect on consumer purchasing power and spending patterns as well as change in demand and supply (What is PESTLE Analysis?

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

S &A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous income statements and balance sheets from 1995 to 2001. Perhaps, we can take new assumptions. Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue and the common stock of Nike Inc should be added to the North

Macroeconomic forces include global market conditions outlining current overall conditions from a macroeconomic perspective. This force asks the question if the economy is in a boom or a bust phase. Capital markets describe current capital market conditions as they relate to the organizations capital needs. Commodities and other resources highlight current prices and price trends for resources required for the organizations business model. Economic infrastructure describes the economic infrastructure of the market in which the business

The fleeting trend deception is conferred by contentions that interest to the developing fame of a thought as an explanation behind tolerating it as genuine. They take the negligible actuality that a thought suddenly pulling in followers as a purpose behind us to participate with the pattern and progress toward becoming disciples of the thought ourselves.

clear assessment of the financial health of the company: NIKE International. Just knowing that this company chose a symbol that references the winged goddess of victory seems to have been a premonition for the designer of the ‘swoosh’ as well as the founder, Phil Knight, of NIKE. (Hinker,)

Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from

Kimi Ford is a portfolio manager at NorthPoint Group, a mutual-fund management firm. She is evaluating Nike, Inc. (“Nike”) to potentially buy shares of their stock for the fund she manages, the NorthPoint Large-Cap Fund. This fund mostly invests in Fortune 500 companies, with an emphasis on value investing. This Fund has performed well over the last 18 months despite the decline in the stock market.

In order to properly discuss Nike’s issues, it is important to first look at the apparel industry and the economy as a whole to determine how Nike compares to it. The apparel industry, more specifically the athletic apparel market, is a very dynamic industry to be in. Because of

A comprehensive analysis, using market data and market research, allows us to assess all areas affecting Nike’s strategic direction:

Three important macroeconomic factors impacting the operations of Nike include the employment levels, the income per capita and the consumer price index.