Nike Financial Analysis

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Nike Financial Analysis

Investing in a company has certainly changed over the years. Financial information is literally at one's fingertips via the internet. In today's fast paced corporate environment companies are under tremendous scrutiny to maintain their edge. The company I am evaluating is NIKE. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. This information is designed to assist a potential investor.

Nike's mission is complex. Listed below is a copy of Nike's company philosophy.

Company Philosophy:

WE ARE ABOUT DREAMS.

Nike was, is, and will always be a company driven by certain key philosophies. What are they? First and foremost, we are a company dedicated to innovation and the passion to create great product. From Bowerman's Waffle Trainer to the Tour Accuracy golf ball, we make every effort to take consumers where they want to go before they realize they want to go there.

WE ARE ABOUT THE CONSUMER.

The consumer rules the roost. They make the important decisions. I answer to them, as we all do. The opinions of Wall Street analysts and media pundits are really just derivatives of our relationship with our consumers. When the young at heart seek out our products, when they respond to our messages and believe in what we stand for, when our relationship with consumers is healthy, that's when we grow. Even so, gaining true understanding of our consumers, and thereby being able to deliver meaningful innovation to them, is a huge challenge. It's not the demographics that change; it's the deliverables. Ours is a constantly moving target. Technology continues to increase the pace and volume of options in all of our lives.

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...59 This ratio must appear on the face of a company's income statement. Nike (EPS) is up from 1.35 in 2008.

This is another sign of a strong company, although it is not uncommon for a company to have a down year. These ratios show the following: · Nike has a very good ability to pay current liabilities. This was evident in the current ratio and the acid test. · Nike has an excellent ability to pay short term and long-term debt. This was proven in the debt ratio and times-interest-earned ratio.

Nike is a solid company in 2009, from a profitability stand point. This was apparent in the Rates of return on sales, assets, and common stockholder equity. I would recommend Nike to a potential investor because of the reasons listed above, in this analysis. I would also recommend a thorough analysis of the Industry by researching at least tow of Nike's closest competitors.

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