Nike's Financial Analysis

4313 Words Jul 13th, 2012 18 Pages
Nike’s Financial Analysis
Antonio Sanguinetti
Dr. Muleka Kikwebati
Strayer University
Financial Management
March 10, 2012

Table of Contents

Abstract 3 History 4 Scope of international operations. 5 Capital structure. 5 Ratios. 6 Dividends 7 Recent stock performance. 8-9
SWOT Analysis 10-12
Final Thoughts 13-14
References 15
Appendixes 16

Abstract
The purpose of this paper is to provide investors with comprehensive information on Nike, its financial health and activities, its strength and weaknesses, and whether Nike creates value to its shareholders. This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. Examine how Nike's
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Nike must therefore respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing. Failure to respond in a timely and adequate manner could have a material adverse effect on our sales and profitability. This is a continuing risk.
The Nike brand operations are based on internal geographic organization. Each of the Nike Brand geography operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel, and equipment. Effective June 1, 2009, Nike began operating under a new organizational structure for the Nike brand, which consists of the following six geographies: North America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. In fiscal 2011, non-U.S. sales (including non-U.S. sales of our Other Businesses) accounted for 57% of total revenues, compared to 58% in fiscal 2010 and 2009 [ (Nike , Inc., 2011) ].
2011 Revenue by Geographic Segment
North America-35%
Western Europe-20%
Central and Eastern Europe-6%
Greater China-9%
Japan-5%
Emerging Markets-11% In fiscal 2011, sales in the United States including U.S. sales of our Other Businesses accounted for