Nike's Benefits Of Nike

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Nike is one of the world’s largest footwear & athletic apparel manufacturer and supplier. Nike markets athletic wear, footwear, accessories and sports equipment for all types of sports and training. Nike started out named Blue Ribbon Sports Inc. and changed its name in 1971 to Nike. The famous company is headquartered in Beaverton, Oregon. Nike sells its products in all Nike belongs to the ‘apparel footwear and accessories’ industry, and is one of the leading company when it comes to profitability. In 2015, Nike’s global revenue was around 30.6 billion dollars. Nike focuses on invention of products for athletes to solve problems leading into the next generation. A few of Nike’s largest competitors are Under-armor, Adidas, and Reebok. This essay uses key financial ratios to measure Nike’s strength or weakness as a company, and ultimately decide if Nike is worth investing in. Our first important financial ratio is the current ratio. The current ratio measures a firms’ potential or ability to pay off it’s short term debts (or liabilities) with specifically it’s current assets. Short term liabilities are due within a year, which makes the current ratio extremely important. The ratio is both a liquidity ratio and an efficiency ratio. A company favors a higher current ratio because it shows the company can pay current debt payments with little hassle. If a company has a current ratio of 3, it means the company has 3x the current assets than current liabilities. But If a company

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