Nike's Financial Analysis Essay examples

Words: 4311
Pages: 18

Nike’s Financial Analysis
Antonio Sanguinetti
Dr. Muleka Kikwebati
Strayer University
Financial Management
March 10, 2012

Table of Contents

Abstract 3 History 4 Scope of international operations. 5 Capital structure. 5 Ratios. 6 Dividends 7 Recent stock performance. 8-9
SWOT Analysis 10-12
Final Thoughts 13-14
References 15
Appendixes 16

The purpose of this paper is to provide investors with comprehensive information on Nike, its financial health and activities, its strength and weaknesses, and whether Nike creates value to its shareholders. This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. Examine how Nike's
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Nike estimate that we sell to more than 20,000 retail accounts in the United States. The Nike brand domestic retail account base includes a mix of footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts. During fiscal 2011, our three largest customers accounted for approximately 23% of sales in the United States. Fiscal 2011 was a rewarding and challenging year. NIKE, Inc. delivered record revenue and earnings. Nike did it by leveraging resources and relentlessly pursuing bigger growth opportunities. That kind of laser focus enables them to navigate an ever-changing macroeconomic landscape while continuing to deliver amazing products and experiences to consumers and that creates value for the shareholders. The current managers for Nike are creating value for shareholders by expanding Nike operations in foreign markets as much as possible. Nike's sales and earnings outpaced Wall Street estimates FY 11. Nike's revenues grew 10% to $20.9 billion; net income increased 12% to $2.1 billion, and delivered diluted earnings per share of $4.39, a 14% increase from fiscal 2010 [ (Nike , Inc., 2011) ]. For the year, diluted earnings per share grew at a higher rate than net income due to a 2% decrease in the weighted average number of