Ratio Analysis Report

5137 Words21 Pages
FINANCIAL RATIOS AND ANALYSIS OF;

* NIKE INC

* PUMA

* ADIDAS

Contents

* Executive Summary | * Nike INC | * Puma | * Adidas | * Financial Ratios | * DOL & DFL | * Analysis of Financial Ratios | * Conclusion |

EXECUTIVE SUMMARY

This report highlights the comprehensive financial analysis of the three well known sports
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Nike 's sales and earnings outpaced Wall Street estimates FY 06. Nike 's sales reached $15 billion and its earnings per share were up 18%. Over the past 5 years, Nike 's earnings per share on compounded rate were up 20%, gross margins averaged 42% and in the past year, Nike delivered 44% margins in a period of rising costs. The current managers are maximizing shareholder 's wealth but in the footwear industry, Nike 's performance still falls. The footwear industry averaged about 14.25%, while Nike 's growth in stock was 10.48%. If the increase in value of shares is a benchmark of performance for managers, Nike 's performance is unimpressive. The brand itself is considered the biggest strength of Nike. Nike earns more revenues from its international operations than its domestic market. Nike earned about $6.5 billion FY 2005 from its international operations, compared to $5.1 billion from its domestic market. International operations appear to be a key driver of Nike 's growth. The picture below illustrates Nikes price trend for the last five years.

PUMA
Puma AG Rudolf Dassler Sport, formally branded as Puma, is a major German national company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler,
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