CompanyAnalysis Group 14_Jonathan Hayes_Clint Halim

Jonathan Hayes

Fin201*02 Fundamentals of Financial Mgt. 12/17/15

Nike Inc.

NKE

$126.30 Dec. 13th Close

2.

Nike Incorporated is the worlds largest producer of exclusively branded footwear, clothing and sports apparel such as cleats, shoes, socks, shirts, pants, etcetera. The logo for Nike was created back in 1971 around the start of the business. By the late 70’s Nike was evaluated at 210 million dollars. As of today Nike has surpassed revenues of over 30.6 billion dollars and continues to grow. Approximately 77 percent of Nike’s sales in the past year has been wholesale, with 23 percent accounting for direct selling to customers through the Nike webpage, as well as affiliate outlets. Around 64% of Nikes revenues are generated from sales of shoes. As you will see in the analysis Nike is steadily growing in the high single digit growth in revenues and earnings per share.
Nike Inc. has 6 notable regions of distribution: North America (48% 2015 revenues), Western Europe (20%), Central & Eastern Europe (5%), Greater China (11%), Japan (3%), and emerging markets (14%). As far as retail distribution locations are concerned, Nike has 33 factory overstock outlets around the United States and 73 abroad employing 185 different operations factory stores in the United States, and 512 internationally. American labor by number of factory outlets account for 26.5% of the total production of goods.
In the five years since 2011, this company has experienced compounded annual growth rate for revenue EBIT of 9.9% and 11.2%. Total gross margins during the year were .3 percent increased from 2011 at a rate of 46%. The stock volatility rating is quite low due to it steadily high rates of constant growth.

3.

A) Current ratio- measure a company's liquidity or ability to pay off short-term debts.