What Is Nike's Positive Net Economic Growth Rate?

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.

S &A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous income statements and balance sheets from 1995 to 2001. Perhaps, we can take new assumptions. Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue and the common stock of Nike Inc should be added to the North

sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they

Nike Enterprise possesses heaps of segments all over the world such as North America, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. In addition, there are also manifold merchandises manufactured and distributed beyond the United States. Hence, large amount of purchase and sale transactions in different currencies are executed by Nike enterprise. If foreign currency exchange rates and interest rates waver, Nike enterprise may suffer a decline in revenues, growth in cost, and lower margins and earnings.

NIKE, Inc.'s profit margin has remained consistent when comparing FY12 to FY14. In FY13, however, it decreased by 40 basis points, which can be explained by two things: First, in FY13 demand creation expense rose by 5% against FY12. This was "mainly driven by an increase in sports marketing expense, marketing support for key product initiatives, [...], as well as an increased level of marketing spending around global sporting events such as the European Football Championships and London Summer Olympics." Second, in FY13, "operating overhead expense increased 13%, primarily attributable to increased investments in [NIKE, Inc.'s] Direct to Consumer operations, higher personnel costs, and corporate initiatives to support the growth of [NIKE,

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.

Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from

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

The sportswear industry is very price sensitive and most competitors prices are about the same. Nike sells its products in Nike shops and the selling of its products direct to the consumers conflicts with other resellers of the brand. Most of Nike’s earnings are derived from selling into retailers.

On a like-for-like basis, Reebok segment sales declined by 5% in 2007. At TaylorMade-Adidas Golf, currency-neutral revenues increased 1%, negatively impacted by the divestiture of the Greg Norman Collection wholesale business. On a like-for-like basis, TaylorMade-Adidas Golf sales increased 9%. Sales in the HQ/Consolidation segment decreased by 60% on a currency-neutral basis, mainly due to the expiration of the Salomon footwear sourcing cooperation agreement. Currency translation effects negatively impacted sales in all segments in euro terms. Adidas sales increased 7% to € 7.113 billion in 2007 from € 6.626 billion in 2006. Sales at Reebok decreased 6% to € 2.333 billion versus € 2.473 billion in the prior year. TaylorMade-Adidas Golf sales declined 6% to € 804 million in 2007 from € 856 million in 2006. HQ/Consolidation sales decreased 62% to € 48 million from € 129 million in the prior year. (Adidas-group factsheet 2007).The merger and acquisition has gone beyond expectation. Although there were reports of declining sales of Reebok in the North America in the early years of its acquisition but this was due to the currency-neutral sales in the Reebok which is now associated to the turnover. But in later years, beginning 2010 despite the economic turmoil in US and Europe the Adidas Group together with other subsidiary products continues to boost its sales.Such increases are

Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of sporting apparel and accessories (Sage, 2008). Nike is the world leader in the segment of athletic shoes and apparel (Iqbal, n.d.). The purpose of this paper is to examine the challenges and issues faced by Nike’s management, and what factors have led to such issues. Furthermore, what theories and strategies can be used to explain the issues or deal with such problems for the future. Given the word limit of this paper, it is not possible to focus on all facets of Nike’s managerial complications, or the strategies that may be implemented to solve such issues. As such, this paper will focus on Nike’s organisational structure, motivation of their workforce and managing cross-cultural conflict effectively. Using these concepts, this paper will highlight Nike’s managerial blunders, and provide alternative strategies through the explanation of theories to assist in bettering its business practices. Finally this paper will conclude, that presently Nike’s brand is gradually recovering from its unethical pasts and on the road to regaining its consumer loyalty. Nevertheless, there are clearly management inefficiencies that need to be overcome, otherwise history may repeat itself.

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.

The cost to the retailer is approximately 35.50$ which includes in the Research and development ($0.25), promotion/advertising ($4.00), Sales/distribution/admin ($5.00) and Nike’s operating profit ($6.23). While the cost of the user is $70.00 which holds in it the Retailer’s rent ($9.00), personnel ($9.50), other ($7.00) and Retailer’s operating profit ($9.00) (Break Down of Nike’s cost, 1995). In the first quarter of 2015, the revenues for Nike increased 15% from 7.4$ to $8.0billion. Gross margin elevated 46.6%. The increase was due to higher margin products and higher average prices. Selling/administrative expense exceeded 21% , reaching to $2.5 billion. Operating expense increased 19% to $1.6 billion and the net income increased 23% to $962 million (Leonard, 2015). Nike’s Inventories were $4.0 billion, short-term investments and cash were $1.0 billion, $4.6 billion, which was lower compared to the last year. (Nike News,

Firstly Nike sold its franchise licenses in different countries expanding the market share in sports wear industry, and then the company moved towards purchasing shares in equity to reduce the risk uncertainty. Finally the company managed to bring the dealers’s corporation under one direction enabling them a better control and monitoring capabilities. Nike is making new policies, analyzing the performance of marketing and advertising with the standards they have set to make sure that the company is in line with its required its standards in addition; company is moving towards improving its advertisement in order to make it more effective in different regions. Nike has also faced different issues while internationalizing the business, such as capabilities, access, finance and business environment; unavailability of trained workers, limited information about the market, inability of contacting foreign customers and new business environments describes these issues on a vast ground.

The global fashion industry is valued at 2.4- 3 trillion dollars, with sales expected to exceed 1.6 billion dollars (FashionUnited, 2016; Gilani, 2017). Despite the global economic turbulence, the fashion industry was one of the few winning industries with continued 5.5% annual growth during the last decade. According to the FashionUnited (2016), Nike is the largest company in the fashion industry with a value of 105 billion dollars, followed by the fast- fashion company Inditex with a value of 104 billion. The Louis Vuitton Moet Hennessy (LVMH) conglomerate comes in the third place followed by the US-based company TJX. The top 5 leading fashion companies is completed with the Swedish- based fast fashion company H&M with a market