Ratio Analysis Report

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.

Financially Nike has seen a massive growth from its humble beginnings of selling products from the trunk of a car to having revenue of $24.148 billion and a income of $ 3.040 billion in 2012 (United States Securities and Exchange Commission, 2011) Nike has been extremely effective at expanding beyond its domestic market of the United States to become a global brand that boasts 44,000 employees worldwide.

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.

This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.

This is a comparative analytical paper that will analyze selected financial ratios for Nike Inc. and Armour Inc. The paper will also discuss the implications of the ratios on the overall business performances for each entity. Financial ratios, in this case, will act as performance metrics for different business operations. The ratios indicate the actual financial and performance health of any business at a particular time.

Puma is a German multinational company founded in 1948. It sells a range of sportswear products from footwear, apparels to accessories. The products are distributed in more than 120 countries and the company uses outsourced manufacturing facilities in more than 40 countries (Santjer & Neuber. 2014).

Similarities & Differences: Within the financial statement of Nike, Inc. there are tremendous similarities due to the consistency as well efficiency of the conduction of business. However, with these similarities is a fair deal of differences due to economic stability as well as the adoption product ideas and innovative methods that aid Nike to continue for the better of the company: by reaching new levels of sustainability as they enhance product performance, by developing, more meaningful connections with consumers, and by presenting their products in compelling experiences at retail. The annual reports of 2010 to 2014 clearly distinguish the letter to shareholders in the same placement but the content with each year are not similar by any means; within 2010, they created six new strategic geographies to focus their effort where passion and culture of sport are strongest. Nike pushed forward an aggressive retail agenda in store and online. Revenue at $19 billion the previous year went down 1 percent under EPS and future orders. Their income from other operation contributed more than $2.5 billion in revenue and generated $2.8 billion in free cash flow from operations and had $5 billion in cash and short-term investments on their balance sheet. Revenue from direct to consumer increased 12% to near $2.5 billion. Gross margins came in at 46.3 percent for the year. That was the year of the World cup, whereby they showed tremendous acceleration they generated in the back of

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the

Firms and Companies include ‘Ratios’ in their external report to which it can be referred as ‘highlights’. Only with the help of ratios the financial statements are meaningful. It is therefore, not surprising that ratio analysis feature are prominently in the literature on financial management. According to Mcleary (1992) ratio means “an expression of a relationship between any two figures or groups of figures in the financial statements of an undertaking”.

PUMA is counted in the leading sports lifestyle companies of the world and is famous for designing and developing footwear, accessories and apparel. PUMA commits to serve its customers by supporting creativity, sustainability and peace. It promises to be fair, loyal, honest and creative in its decisions and actions. The unique feature of PUMA is that it manufactures sports stuff keeping in mind the fashion and style (Parasuraman, Grewal and Krishnan , 2007). It has collaborations with famous designers like Alexandra McQueen and Mihara Yasuhiro. PUMA group that was founded in 1948 has now three brands; PUMA, Tretorn and Cobra Golf. It distributes its products to more than 120 different countries across the globe and has a network of around 11000 employees.

The beginning for puma, the multination brand that is the leading athletic footwear, apparel and accessories companies in the world, all started in a town in the district of Erlange-hoohsyadi in Bavaria, Germany. Christoph Von Wilhelm Dassler a common shoe factory worker, while his wife Pauline ran a small laundry in Bavarian in the town of herzogenaurach.

Puma is a sport brand created in 1924 In Germany by Rudolf Dassler the brother of Adolf “Adi” Dassler who founded the competitor ADIDAS.

Puma is the world's #3 sportswear manufacturer. It has a longstanding historic rivalry with the #2 manufacturer Adidas, not least because the two companies were founded by brothers Rudi and Adi Dassler, former business partners who fell out in the late 1940s and spent the rest of their lives as bitter competitors. Puma built up a strong following over the next three decades as one of the two leaders in sporting shoes and apparel but was unprepared for the dramatic changes in the sportswear market

Puma is one of the world’s leading athletic footwear, apparel and accessories companies. The history of the company began in 1948, when Rudolf Dassler, the founder of Puma, had separated from the existing business assets “Gebrüder Dassler Schuhfabrik”. Throughout the years they were the first to introduce many new footwear innovations, including vulcanized soles on soccer shoes, uniquely shaped soles on running shoes to enhance natural motion, athletic shoes with a Velcro strap, and the Puma Disc system, which replaces laces with a series of wires. Thereby gaining a great success in football and athletic boots . In 1986 company went public under the leadership Armin Dassler. In 1993 a new CEO Jochen Zeitz manages to turn the company from the law price to premium company that is ranked as one of the three leading brand in the sporting goods industry .