Working Capital Strategis Essay examples

1405 Words Oct 9th, 2008 6 Pages
The following content provided will include information regarding Nikes Inc. cash management strategies, which will include more in depth information from the previous group paper. In addition, working capital recommendations will be provided to senior management base on next year’s in the pro-forma financial statements.

Working Capital Strategies Paper Financial statements are a vital factor of any business organization; they show where a company’s money came from, where it went, and where it is now, according to Securities and Exchange Commission website (2008). In addition, four main financial statements consist of the balance sheet, income statement, cash flow statement, and statement
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NIKE will be announcing its financial results for the first quarter fiscal year 2009 on September 24, 2008 after the close of stock market trading hours. NIKE stock is expected to see a slight rise in price giving investors hope that sales surges in the Asian and European markets, as well as money spent on innovation and operations, will give further rise to NIKE stock NIKE, Inc, 2008).
Following through with NIKE’s stock repurchase program, should NIKE see at least a 20% rise in stock prices in fiscal year 2009, just as they saw a 22% rise in 2008, NIKE will be well on its way to competing its four year stock repurchase goal set forth by NIKE’s Board of Directors in 2006 (Nike, Inc, 2008). This will also allow NIKE to raise quarterly dividends paid to its shareholders. A 20% increase will bring NIKE 46,375,269 shares closer to its goal with a total of approximately $2.43 billion. This may also allow NIKE to raise its quarterly stock dividend payable to roughly .28¢ per share.
The function of bonds can determine the liquidity of the company in order to finance or invest to increase revenues and to justify the implementation of new innovative projects. Cash outflows such as dividends or increased drawings of stock and bonds will have the propensity to remove liquidity from NIKE. NIKE must consider a more aggressive means to financing capital investments. In figure 1,

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