Nike Company

2172 Words9 Pages
Nike was founded in 1964 as Blue Ribbon Sports by University of Oregon track athlete Philip Knight and his coach Bill Bowerman, and officially became Nike, Inc. in 1978. The company takes its name from Nike, the Greek goddess of victory, and adopted the well-known logo, called the “Swoosh”, first used by Nike in 1971. Nike produces a wide range of sports equipments. Their first products were track running shoes, for a wide range of sports including track & field, tennis, baseball, Association football, lacrosse, basketball etc. Nike sells an assortment of products, including shoes and apparel for sports activities for men, women and children. Nike has contracted with more than 700 shops around the world and has offices located in 45…show more content…
But it doesn’t mean that it is better for a company to have a very high current ratio. The very high current ration may indicate that the company is holding more current assets than it need and its excess resources might be directed in more profitable investment opportunities. Let’s look at the Nike’s short-term debt-paying ability Current Assets Current Liabilities Current Ratio (In millions) 2004: 5,528.6 2,030.5 2.7:1 2005: 6,351.1 1,999.2 3.2:1 2006: 7,359 2,623.3 2.8:1 2007: 8,076.5 2,584 3.1:1 2008: 8,839.3 3,321.5 2.7:1 2009: 9,734 3,277 2.9:1 During the six year period quality of NIKE appears to be reasonable liquid. The company maintained a good ability to pay off their short-term debts during this period of time. We can notice that during 2005 and 2007 company maintained highest current ratio, which means that during these years the company had considerable current assets relative to current
Get Access