Nike Executive Summary
Nike is one of the largest corporations in the athletic apparel, footwear and equipment industry. The company’s headquarters is located in Beaverton, Oregon and the current President/CEO is Mark Parker (Nike, 2014). It was founded in 1964 under the name Blue Ribbon Sports by Phil Knight and Bill Bowerman. The founders’ goal was to produce quality running shoes and the business began by selling the shoes at track events. In 1971 the company changed its name to Nike, which means Greek goddess of victory. Also, that same year the new logo was created by Carolyn Davidson for thirty five dollars.
Nike has been successful in providing a wide range of products to manufacturers and consumers. Some of the brands offered include Converse, Inc., Hurley International LLC designs, and Jordan Brand designs. They are ranked number 106 …show more content…
Over the last 10 years the company has managed to double their revenue and successfully increase their employee base by 10,000. In the 2015 year end the company reported net income of $3.2 million versus previous year for 2014 which reported 2.6 million. Nike appears to be focused and committed on growth performance. In addition, based on 2015 annual year end income and balance sheets the company’s financial ratios are as follows: 1) Current Ratio: $15,976,000 / $6,334,000 = 2.5% 2) Quick Ratio: $15,976,000-4,337,000 /$6,334,00 = 1.84% 3) Fixed Assets turnover ratio: $14,067,000/3,011,000 = 4.67% 4)Total Assets turnover: $30,601,000 / $21,600,00 = 1.42% 5) Total Debt to total assets: $8,893,000 / $21,600,00 = 41.17% 6) Profit Margin on Sales: $3,723,000 / $30,601,000 = 12.17% 7) Return on Total assets: $3,723,000/ $21,600,000 = 17.24% 8) Return on common equity: $3,273,000/$12,707,000 = 25.76% 9) Price/earnings ratio: Price per share as of 1/10/14 $58.87 / 2.06 = 28.58% 10) Market/Book ratio: $12707/1714 = 7.41%
Nike has been successful in providing a wide range of products to manufacturers and consumers. Some of the brands offered include Converse, Inc., Hurley International LLC designs, and Jordan Brand designs. They are ranked number 106 …show more content…
Over the last 10 years the company has managed to double their revenue and successfully increase their employee base by 10,000. In the 2015 year end the company reported net income of $3.2 million versus previous year for 2014 which reported 2.6 million. Nike appears to be focused and committed on growth performance. In addition, based on 2015 annual year end income and balance sheets the company’s financial ratios are as follows: 1) Current Ratio: $15,976,000 / $6,334,000 = 2.5% 2) Quick Ratio: $15,976,000-4,337,000 /$6,334,00 = 1.84% 3) Fixed Assets turnover ratio: $14,067,000/3,011,000 = 4.67% 4)Total Assets turnover: $30,601,000 / $21,600,00 = 1.42% 5) Total Debt to total assets: $8,893,000 / $21,600,00 = 41.17% 6) Profit Margin on Sales: $3,723,000 / $30,601,000 = 12.17% 7) Return on Total assets: $3,723,000/ $21,600,000 = 17.24% 8) Return on common equity: $3,273,000/$12,707,000 = 25.76% 9) Price/earnings ratio: Price per share as of 1/10/14 $58.87 / 2.06 = 28.58% 10) Market/Book ratio: $12707/1714 = 7.41%