Nike Project
Nike
Project Report
Mridul Jain, Krishore Veerasekar, Ziad Ahmed
Table of Contents
ABOUT NIKE 1
Description of Nike 1
MAJOR EVENTS 2
Acquisition 2
Divestitures 2
STRATEGY 2
Advertising 2
NIKE’S FINANCIAL RATIOS 3
Liquidity or Working Capital 3
Current Ratio 3
Quick Ratio 3
Working Capital 4
Efficiency and Asset Management 5
Total Asset Turnover 5
Fixed Asset Turnover 5
Days Sales Outstanding 5
Debt Management 6
Total liabilities to Total Assets 6
Long-Term Debt to Capital 6
Times Interest Earned (TIE) Ratio 7
Performance 7
Profit Margins 7
Return on Assets 8
Dupont Ratio 8
Bond Evaluation 9
Market Value of Debt, Debt Structure, Average maturity of Debt 9
Effect of Changing Interest Rate on Debt Market Value 10
Market Value of Equity (E) Calculation: 10
Market Value of Debt (D) Calculation: 11
The Calculation of Weighs: 12
Weight of Debt (WD) 12
Weight of Equity (WE) 12
The Advantages of Using Debt as Capital Structure 12
Details for Nike 2.25% | Maturity: 2023 14
Credit Rating as per Morning Star 15
Key Value Drivers and Barriers for Nike Growth 16
Key Drivers 17
Barriers 17
Nike Competitors Analysis 18
Under Armour and Nike 18
Estimated Stock Price and Actual Stock Price 19
Capital Budgeting 20
Cost of Capital and Capital Structure 23
Appendix A 26
REFERENCES 27
ABOUT NIKE
Description of Nike
Nike is the company which has thoroughly embedded in the hearts of people in the entire world. It has set it mark from the ground level of footwear to behemoth in the sports industry. In 1964 as a partnership, Nike was first established as Blue Ribbon Sports. The name Nike was made official on May 30, 1978. Nike became a public traded company in 1980.
The brand name Nike itself adds on the strength to the Nike Company. The other strengths of Nike include international operations where it has enormous expansion ability, innovation of new products such as eco – friendly products through which they are connecting the consumers directly. Nike has a huge customer
Project Report
Mridul Jain, Krishore Veerasekar, Ziad Ahmed
Table of Contents
ABOUT NIKE 1
Description of Nike 1
MAJOR EVENTS 2
Acquisition 2
Divestitures 2
STRATEGY 2
Advertising 2
NIKE’S FINANCIAL RATIOS 3
Liquidity or Working Capital 3
Current Ratio 3
Quick Ratio 3
Working Capital 4
Efficiency and Asset Management 5
Total Asset Turnover 5
Fixed Asset Turnover 5
Days Sales Outstanding 5
Debt Management 6
Total liabilities to Total Assets 6
Long-Term Debt to Capital 6
Times Interest Earned (TIE) Ratio 7
Performance 7
Profit Margins 7
Return on Assets 8
Dupont Ratio 8
Bond Evaluation 9
Market Value of Debt, Debt Structure, Average maturity of Debt 9
Effect of Changing Interest Rate on Debt Market Value 10
Market Value of Equity (E) Calculation: 10
Market Value of Debt (D) Calculation: 11
The Calculation of Weighs: 12
Weight of Debt (WD) 12
Weight of Equity (WE) 12
The Advantages of Using Debt as Capital Structure 12
Details for Nike 2.25% | Maturity: 2023 14
Credit Rating as per Morning Star 15
Key Value Drivers and Barriers for Nike Growth 16
Key Drivers 17
Barriers 17
Nike Competitors Analysis 18
Under Armour and Nike 18
Estimated Stock Price and Actual Stock Price 19
Capital Budgeting 20
Cost of Capital and Capital Structure 23
Appendix A 26
REFERENCES 27
ABOUT NIKE
Description of Nike
Nike is the company which has thoroughly embedded in the hearts of people in the entire world. It has set it mark from the ground level of footwear to behemoth in the sports industry. In 1964 as a partnership, Nike was first established as Blue Ribbon Sports. The name Nike was made official on May 30, 1978. Nike became a public traded company in 1980.
The brand name Nike itself adds on the strength to the Nike Company. The other strengths of Nike include international operations where it has enormous expansion ability, innovation of new products such as eco – friendly products through which they are connecting the consumers directly. Nike has a huge customer