The Theme Of Nike Foreign Exchange Exposure Essay

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.

In this project, I have chosen to provide a microeconomic-based analysis on NIKE Inc. The study will include the analytic overview of the general market of Nike brand, as well as the information about the goods, service, and areas of operation. Throughout the research of this paper, I will discuss the cost of production, as well as the supply and demand in relation to microeconomics. Moreover, we will look at how supply and demand of this market regulates the equilibrium of quantity and price, as well as the economical efficiencies where the surplus for consumer and producer is maximized. Information will be explored to understand why businesses and people make decisions and how those actions we can be used for strategy. To conclude this research paper, I will take a deeper look and make recommendations for the future profitability, future growth and sustainability of NIKE Inc. (Hubbard & Obrien, 2015).

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

Apparently, the issue of Nike’s case is to control and check the calculation cost of capital done by Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too. Because her assumptions such as Revenue Growth Rate, COGS / Sales,

It is very common in a large business to move abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Nike. In two different economic environments: India and the UK.

Nike’s stock market worksheet shows us in general that their financials are in a rising trend. First, their stock value today is 58.43 (positive). In addition, the analysts recommendations are that 14 recommend to buy shares, 5 recommend to hold shares, and 0 recommendations to sell them. Thus, our group’s recommendation is to invest in Nike as a result of the terms above.

During the beginning of the first quarter which was reported on September 25, 2014, Nike reported their revenues going up fifteen percent at eight billion dollars. The earnings per share went up twenty seven percent with $1.09, and the worldwide future order were said to increase eleven percent excluding currency changes. Conveniently the revenue of Nike whent up fourteen percent as of August 31, 2014. Even after the dramatic change in the currency changes, the demand of Nike and their products went up making Nike earn more revenue (Yahoo Finance)("Morningstar Investment Research Center." Morningstar Investment Research Center. Morningstar, 29 Nov. 2015. Web. 29 Nov. 2015.)

Exploring How Nike Influences the Environments in Which It Operates Introduction: The main objective of this essay is to answer the question "to what extent does Nike influence the shape of the environments in which it operates?" To reach this objective, I will first talk a little bit about the components of this question, which are "Nike" and "Environments". There is a tiny difference between a global and multinational company, but in general they are companies which operate in a number of countries and have production or service outside the country of origin. About Nike:

The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.

NIKE is the world’s largest athletic footwear and apparel that ranks in the top 20 of the World’s Most Valuable Brands 2015. It designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. The company was founded in 1964 and has its headquarter in Beaverton, Oregon. Apart from Nike brand, the company also entirely owned subsidiaries, which are Converse and Hurley International brand. In FY2015 (for the period ended 31 May 2015), Nike, Inc. recorded revenues of $30,601 million ($28,701 million solely from Nike brand), a growth of 10% over FY2014. Moreover, a break-down of revenues (only Nike brand) by geography illustrates that 47.9% of the total revenues were accounted by North America, 19.9% by Western Europe, 13.6% by Emerging Country, 10.7% by Greater China (an increase of 18% over FY2014), and the rest by Central and Eastern Europe and Japan. In addition, in term of revenues by product category, Nike generates revenues mainly from Footwear products with 63.8%, following by apparel 30.1%, and the remaining is equipment and other.

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

The Oregon-based company, Nike Inc., is one of the biggest brands across the world. Nike is dominating the segment of athletic footwear, clothing and accessories through a strong market base. According to Yahoo Finance ( 2016), Nike has a market capitalisation of $85.14 billion whereas its competitors such as Adidas (32.63) puma ( 3.68) ralph lauren (8.01) JC Penny ( 2.62). Such a huge market capitalisation has led Nike to have P/E ratio of 25.56 which is lower than the industry (textile – footwear apparel and accessories) of 19.4. This suggests that investors expects the company to grow. Nike has achieved this by clo

In this module case study I will briefly review Nike Inc. (NKE) and how important it is for the financial managers to use economic variables in order to identify their long term financial goals. I will also go over a few techniques that the financial managers of Nike Inc. could use for economic forecasting in the global economy.

“Developed markets like the United States are relatively stable, thereby proving Nike Inc. with the chance to continue its slow but steady growth in these countries. The company also has opportunities to grow by increasing its operations in high-growth developing countries quickly. However, the rapid expansion of emerging markets also threatens Nike by increasing labor costs in the company’s supply chain and production facilities”.

Great Eastern Toys is a company in Hong Kong that exports a huge percent of its total sales to the North American and European markets and hence is exposed to currency risk. Previously, the company was occupied with expanding their business and the company 's management had never given much attention to currency risk until their recent meeting with their banker. The banker pointed out that the depreciation of the European currencies during the previous two years had resulted in a substantial loss of income. The company 's management was indeed convinced that they should begin to devote more time and manage their currency position. In this report, we are going to explore the different options for Great Eastern Toys to hedge