A Financial Analysis Of Nike's Sales Growth

Based off previous sales growth I am predicting this trend to continue with the India expansion. Nike should be able to easily transition to a worldwide brand. The budget for advertising has been adjusted to reflect the dollars that will need to be spent to capitalize on the expansion.

To fund this expansion I have anticipated using a certain amount of Cash and having to invest in more property. We have decided not to issue any more shares of common stock, as cash and possible long-term debt should be a sufficient enough source of funding. Break down will be as follows: Year 1 we will use 51 million in cash leaving a balance of 3,801, and invest an additional 10 million in property increasing Property Plant and equipment to 3,021
Currently Nike is a well-positioned financially stable company. Nike is performing well in the categories of operating income, EBIT, Net income and EPS according to the financial statements.
Nike as a company has been able to increase sales each year at a 10% rate for the past five years. They do this by continuing to provide innovative quality products that appeal to the masses and include the ever so important younger generation. Nike stays relevant by building relationships with top athletes in each sport and takes advice on what’s current in the
They would also help the country with the higher tax rates that it would pay as a result of the expansion. I anticipate sales to continue to rise at the current growth rate and possibly increase over the first five years of the expansion. Taxes of course would increase, but with the extra revenue this could easily be accounted for. Nike will continue to be aggressive at paying dividends to the shareholders, increasing the payouts each year based on continued increasing retained earnings. This is a win win for Nike as a company that only improves on a national worldwide brand. The processes are already in place and the date supports this expansion. The company wouldn’t experience any financial strain and would come out even stronger than it is currently. I recommend that management consider this proposal as one of the target markets for Nike moving forward in the near