A Report On The Financial Statement Essay

2199 Words Apr 15th, 2015 9 Pages
ncome statement:

In order to analysis the financial statement thoughtfully, we apply the horizontal analysis technique to find out the significant change in dollar amount and percentage grow rate. From the income statement vertical analysis below (table 1), we could compare a series of financial statement data over a period of time. Sales revenue increase by around 10% from 2013 to 2014. If excluding the currency change, revenue from NIKE Company’s continuing operations grew 11 % for the fiscal year 2014. From the table 2, it provide the revenue structure of NIKE. The table demonstrates the 11% growth rate in sale revenue are driven by both the NIKE Brand and Converse. On a currency neutral basis, NIKE brand footwear and apparel revenue increased by 12% and 10% separately. This significant and continued growth were triggered by increasing demand for performance product, such us brand Jordan Basketball styles. The reason for the high demand might be that basketball stars are in good and positive stature in society. Sales for basketball-inspired footwear-product tend to shifted from performance to lifestyle. Meanwhile, from NIKE10K, “the average selling price per pair increased approximately 5%” (NIKE, Inc.). Both the increased in price and increase sales unit contribute to the higher sale revenue in fiscal 2014.
The table 2 also reveals the fact that the wholesale revenue remains the largest component of overall NIKE Brand Revenue at about 79.2%. (20683/26112=79.2%) As the…

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