Nike Anaylsis
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Financial Statement Analysis for Nike
Nike Corporation released its financial statement for the year ended May 2014. Nike Inc. is a sports apparel manufacturing firm with diverse interests all over the world. The financial statements suggest a strong company whose stocks are not undervalued, but with the potential of exploding higher having shown sustained strengths when the Europe, American, and Chinese economies were at the brink of disaster. Despite sustaining fluctuations from the weakening of the strong economies, the company continued to register an increase in revenues in the financial period 2012-2013 and 2013-2014. It also registered an increase in its net income in the same financial periods.
A firm’s income statement is a financial statement presenting the firm’s financial operations over a given period. It communicates the amount of revenues that a firm generates during the time, and the cost incurred to generate the revenue. For the case of Nike, revenues were realized during the last financial period from insurance premiums, goods sold and services rendered among other activities. In cases involving financial institutions interest and investment income, trading gains and sales were also included. Nikes revenues rose in the financial period 2013/2014. Its operating income, income before taxes, income from continuing operations increased. Consequently, its net income for the year 2013/2014 increased by about seven percent (Nike Inc.: Businessweek.com).
A balance sheet provides the information on a company’s sources of capital such as equity and liabilities as well as providing the companies resources in the form of assets. Further, it may forecast the future earnings of an enterprise in terms of capacity and the indication on the cash flows. In this case, Nike accrued liabilities increased slightly from previous financial year 32% for compensation and benefits, but excluding taxes, 25% other liabilities, 13% endorsement
Institution:
Course:
Date:
Financial Statement Analysis for Nike
Nike Corporation released its financial statement for the year ended May 2014. Nike Inc. is a sports apparel manufacturing firm with diverse interests all over the world. The financial statements suggest a strong company whose stocks are not undervalued, but with the potential of exploding higher having shown sustained strengths when the Europe, American, and Chinese economies were at the brink of disaster. Despite sustaining fluctuations from the weakening of the strong economies, the company continued to register an increase in revenues in the financial period 2012-2013 and 2013-2014. It also registered an increase in its net income in the same financial periods.
A firm’s income statement is a financial statement presenting the firm’s financial operations over a given period. It communicates the amount of revenues that a firm generates during the time, and the cost incurred to generate the revenue. For the case of Nike, revenues were realized during the last financial period from insurance premiums, goods sold and services rendered among other activities. In cases involving financial institutions interest and investment income, trading gains and sales were also included. Nikes revenues rose in the financial period 2013/2014. Its operating income, income before taxes, income from continuing operations increased. Consequently, its net income for the year 2013/2014 increased by about seven percent (Nike Inc.: Businessweek.com).
A balance sheet provides the information on a company’s sources of capital such as equity and liabilities as well as providing the companies resources in the form of assets. Further, it may forecast the future earnings of an enterprise in terms of capacity and the indication on the cash flows. In this case, Nike accrued liabilities increased slightly from previous financial year 32% for compensation and benefits, but excluding taxes, 25% other liabilities, 13% endorsement
References: "Nike Inc -CL B (NKE: New York): Financial Statements - Businessweek." Businessweek.com. N.p., 12 Dec. 2014. Web. 14 Dec. 2014. "Nike Inc. (NKE) | Financial Analysis and Stock Valuation." Stock Analysis on Net. N.p., n.d. Web. 14 Dec. 2014. Broughton, Robert. "Top Swot Analysis Nike." Quality Assurance Solutions, Implement ISO 9001 2008. N.p., n.d. Web. 14 Dec. 2014.