NIKE, Inc. is engaged in the design, development, marketing, and sale of athletic footwear, apparel, equipment, accessories, and services. The Company's operating segments include North America, Western Europe, Central and Eastern Europe, Greater China, Japan and Emerging Markets.
Its portfolio brands include the NIKE brand, Jordan Brand, Hurley and Converse. As of May 31, 2016, the company focused its NIKE product offerings on nine categories: Running, NIKE Basketball, Jordan Brand, Football (Soccer), Men's Training, Women's Training, Action Sports, Sportswear (its style products life inspired by sports), and Golf.
Men's Training includes its baseball and football product offerings. It also markets products designed for children, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. The company sells a range of high-performance equipment and accessories under the NIKE brand.
Nike is a solid company that has been able to overcome the conjunctures and the appearance of new opponents within the clothing sector. An analysis of why it could be a good bet in 2013.
Regarding its fundamentals, the firm is trading at 24 times its earnings for the last year, and with a growth of just 7.4% in the last quarter, it would appear to be somewhat overvalued.
However, in the case of Nike this question could be forgotten, since it is a firm that only by the weight of its brand will remain profitable over time. It is the same case as Coca Cola: they are mature companies that will no longer provide growth rates that will amaze the market, but will never stop providing profitability to their shareholders.
Balance Sheet:
The balance sheet is the financial status of a company at a given time. In order to reflect this statement, the balance sheet shows the assets (what the organization owns), the liabilities (its debts) and the difference between them (net worth).
So in the balance sheet of Nike Inc. we can see that the total assets are $ 22,536 million, remember that on the investing.com page all amounts are in millions of dollars. That said, we can say that its most important asset is inventory with a percentage of 23% of total assets, the second would be property / plant / equipment with 20% and just to mention one more, it would be its accounts receivable with a percentage of 15%. As we know Nike is a company that sells footwear and clothing as we had previously mentioned.
Now, Nike Inc.'s liabilities total $ 12.724 million. The short-term debts are very few, forming the amount of 6,040 million dollars, which makes up 47%. Where the accounts payable are 2,279 million dollars where in percentage it would be 18%, the short-term debts of 336 million dollars (3%) and other liabilities of 3,269 million dollars, which is equal to 26%.
Statement of income
A financial report that, based on a determined period, shows in detail the income obtained, the expenses at the time they are produced and, as a consequence, the profit or loss that the company has generated in said period of time.
The income that Nike Inc. shows is of 36.397 million dollars, its gross profit is 15,956, that is, there is a profit of 43.84%. They make a total operating expense of 31,952 where 36% are from administrative expenses, sales and total expenses in general.
Profitability of Nike
Nike profitability
Gross margin: The gross margin as we can see has grown in recent months, that is good for the company because as we know it is the direct benefit that a company obtains for a good or service, that is, the difference between the sale price (without VAT) of a product and its production cost.
Operating margin: 5 years ago it had more “utility” than the latter. Low 1.13% 5 years ago.
Investment Return Nike
Management Effectiveness
Return on equity: the capital of the company is greater than its assets and liabilities and that is good, because they do not have many debts.
Return on assets and return on investment: these last 5 years have been even compared to this last year. Return on assets has a difference of 0.22% and Return on investment of 0.05%.
Investment Return Nike
As we can see, this company has had losses and gains and at the moment it is in a form of ancestry, I would invest a little and I think that if I made money, the last few days it has been having losses, the price of its shares is going down and today (September 7, 2018) the share price is 80.30, it lost 0.12% compared to yesterday, and compared to August 31 of this same year, which was the day I made the operations, down 1.67%. In my opinion Nike Inc. is a very large company and has a good position in the sports market, since they sell many things for athletes and this market is growing more and more as more things are coming out on social networks about “fit” people, the majority of whom are millennials.This community is very consuming and by showing great interest in this topic (sports) they will buy related products. Another thing that helps this company to have almost no losses is that it has several "influencers" that help promote several of its products.
Bibliography:
- Definition of balance sheet - Definicion.de. (2019). Recovered from https://definicion.de/balance-general/Investing, © 2007-2018 Fusion Media Limited. All Rights Reserved https://www.investing.com/equities/nike-company-profileInvesting, © 2007-2018 Fusion Media Limited. All Rights Reserved
