Preview

Nike Invest In Delta Airline

Satisfactory Essays
Open Document
Open Document
272 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nike Invest In Delta Airline
All in all, according to the financial analysis made earlier in this essay, I would not recommend to invest in Delta airline, but do invest in Nike and AMEX centurion bank for the following reasons. Although Nike’s market performance is not very well, the customer value proposition is working and it has a superior competitive advantage over its rivals. The mix of services, amenities, and goods offered by the Nike help to build customer loyalty. According to the Exhibit B, we know that it's ROA, ROE and ROS start to increase since 2009. Nike’s financial statement also shows that cash from investing is $-1,034 millions. The reason that caused their stock price is going down is their investment decisions. Also, Nike has the beta of 0.51, which

You May Also Find These Documents Helpful

  • Good Essays

    After analyzing their financial position, this report concludes that Allegiant is a satisfying target for investment. Allegiant has three main sources of revenue which include: service trips, ancillary revenues and fixed-free contracts called charters (stocks.investopedia.com). Even though the economic environment is not at its peak, Allegiant has managed sustained growth. Its low prices have kept demand buoyant, and it is one of the few airlines that saw profits go up in the face of skyrocketing fuel prices. Additionally, their stock prices have increased throughout the years and the values of their shares are increasing.…

    • 4438 Words
    • 18 Pages
    Good Essays
  • Powerful Essays

    Delta Airlines

    • 2352 Words
    • 10 Pages

    Margins in air industry have been shrinking for decades. Low Cost Carriers (LCCs) such as JetBlue and Southeast have made inroads to Delta’s Florida market which stands for 30% of Delta’s revenues. After 911 Attacks, the demand decreased. DeltaExpress, Delta’s low-cost subsidiary, is launched to respond LCCs threat but it is not as successful as it was thought it would be.…

    • 2352 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    As of December 31, 2011, Delta Airlines, Inc. has short-term investments totaling $958 million and long-term investments of $188 million. Short-term investments may be classified as any investments held for at least three months and no longer than one year. Long-term investments are classified as any investments held for a period longer than one year. With the recent large cash infusion that Delta Airlines, Inc. received in the amount of $700 million, the company should be able to invest the additional funds in stock and debt securities to maximize…

    • 1780 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Delta Blue Airlines

    • 334 Words
    • 2 Pages

    Delta Blue Airlines operates a commuter flight between Charlotte and Philadelphia. The plane holds 30 passengers in Economy and 6 passengers in First Class. The airline makes a $100 profit on each passenger in Economy and $200 per passenger in First Class on the flight. When Delta Blue takes 30 Economy reservations and 6 First Class for the flight, experience has shown that on average, two passengers do not show up for each class. As a result, Delta Blue is averaging 28 Economy passengers and 4 First Class passengers with a profit of 28*$100 + 4*$200 = $3600 per flight. The airline operations office has asked for an evaluation of an overbooking strategy where they would accept 32 Economy reservations and up to 8 First Class reservations even though the airplane holds only 30 Economy and 6 First class passengers. The probability distribution for the number of passengers showing up with the new overbooking reservations policy is as follows:…

    • 334 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Although it appears that Nike has some inventory management problems, they are clearly growing their net income year over year. From the company perspective, they are effectively leveraging their assets to yield favorable increases in profit year over year, but from the stockholder’s perspective, they are effective leveraging their equity. This shows that although competition increases in the market, Nike’s brand remains relevant and desired within its primary markets. Nike can leverage their brand recognition, liquid capital, and their room for additional risk to focus on their e-commerce platforms, emerging markets, and women’s product…

    • 753 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely. References like books and online resources were used in finding the information required in how the airlines would perform in the future and how the business model has worked for them over the last few years.…

    • 4166 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Nike Cost of Capital

    • 677 Words
    • 3 Pages

    Wanting to add Nike’s share to her portfolio, Kimi Ford asked her new assistant, Joanna Cohen, to estimate Nike’s cost of capital. Cohen, later, came up with the cost of capital of 8.4% that was contradicted to Ford’s cost of capital of 12%.…

    • 677 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nike Cost of Capital Case

    • 2423 Words
    • 10 Pages

    Kimi Ford is a portfolio manager at NorthPoint Group, a mutual-fund management firm. In July 2001, Ford considered buying shares of Nike, Inc., the well-known athletic shoe manufacturer. It would be prudent of Ford to base her assessment on Nike’s financial reports for 2001. Around the same time, Nike held an analysts’ meeting to disclose those financial results. They also addressed ways to revitalize the company, since share price was beginning to decline and revenues had plateaued at around $9 billion. Although Nike projected a rosy future, many analysts had mixed reactions to the projections. Ford was right to come up with her own forecast, seeing as the reactions ranged from too aggressive to growth opportunities.…

    • 2423 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Southwest Swot Analysis

    • 1486 Words
    • 6 Pages

    As a mutual fund manager, I have decided to conduct some research on Southwest Airlines. I will provide an overview of the company’s history, and an analysis of their strengths, weaknesses, opportunities, and threats (SWOT). While there wasn’t any rhyme or reasoning behind my selection, I do feel that Southwest Airlines is one of the leading airlines in the United States. Conducting a SWOT analysis will help me understand what the company’s strengths and weaknesses, identify their opportunities and become aware of their threats. I will also determine the company’s internal and external stakeholders, and their needs. From my research I will decide whether I should invest in this company.…

    • 1486 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    As Nike was the best company of the four companies compared above, one can look at the historical financial performance of Nike and see many different statistics. Displayed in Figure 2.1, one can see the many different financial ratios for Nike over the last three years. In comparing the financial ratios for Nike over the last three years, one can see many different important financial…

    • 1780 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Delta's Merger

    • 1100 Words
    • 5 Pages

    These ongoing operational and policy issues are the responsibility of the Board of directors and the CEO. Delta eventually resolved concerns regarding different suppliers of soft drink products by settling on a combination from both major soft drink corporations. Delta needs to review existing policies from both airlines to determine the efficacy and cost-effectiveness of company practices. They are in the unique and fortunate position of having access to all policies in place from a previous competitor, and should use this information to their ultimate advantage, maintaining the most effective practices of each airline while discarding those that are no longer viable. (Wheelen 27-3)…

    • 1100 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Who would have imagined it? After years on top, Nike suddenly looks like a world-class marathoner who, in midrace, questions whether he's got what it takes to keep on running. Nike's symptoms of distress: a global glut of shoes, flat sales in key markets, and declining profits. Moreover, the global brand champ that captured its own winning corporate mindset with the "Just do it" ad slogan has a new pitch, "I can"--to which investors seem to be retorting, "No, you can't." Losing faith, they have knocked Nike stock from its all-time high of $76 about a year ago to a recent $46.…

    • 734 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Delta Airlines

    • 2664 Words
    • 8 Pages

    It lets you talk to me during class lectures or during help sessions as if you were in the room with me.…

    • 2664 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Delta Air Line

    • 2195 Words
    • 7 Pages

    Delta Air Linesheadquartered in Atlanta Georgia, in the United States. Delta Airlines operates extensive domestic and international network serving all continents except Antarctica. Delta is the sixth-oldest operating airline by foundation date, and the oldest airline still operating in the United States. Delta Air Lines is one of the four founding members of the Sky team airline alliance, the other three being Korean Air France Air andAeromexico. The loyalty program for Delta Air Lines is Sky Miles. Delta Air Lines is the World’s largest airlines in terms of fleet size, the world’s second-largest airlines in terms of revenue passenger-kilometers flown, and the world’s largest airlines in terms of scheduled passenger traffic.…

    • 2195 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    After discounting Nike’s cash flows using the WACC value we calculated, we believe that Nike is undervalued by $2.51 per share of stock. Also, Nike’s terminal value of cash flows is greater than the equity value of the firm. (Exhibit 3). We think that they should invest because the price of Nike’s…

    • 393 Words
    • 2 Pages
    Satisfactory Essays