Financial Reports and Analysis: NIKE INC
Nike is the worlds leading designer, marketer, and distributor of athletic footwear, apparel, equipment and accessories. Nike is an international sporting goods brand that serves athletes with the best products for over 40 years. Nike is a very well known brand that all athletes look at with high quality and performance. Some of the many products Nike has to offer range from clothing for men, women and kids, sporting equipment, sunglasses, shoes, watches and backpacks. The corporation continuously launches new products for consumers every year and responds to consumer feedback. Nike listened to the consumers’ feedback about their shoes regarding the desired color scheme of the shoes. Since customers …show more content…
The current ratio of 2.72 compared with the industry average of 2.59 indicates that Nike's safety factor to meet maturing short-term obligations is slightly high. Capital Lease obligation for fiscal year 2014 was $74 million. Cash provided by operations was $3.003 billion for fiscal 2014 compared to $2.968 billion for fiscal 2013. With capital expenditure of $880 million, free cash flows were $2.123 billion. According to 25 analysts, Nike’s forward P/E ratio is 27.3 and the trailing P/E ratio was 30.40, the company will generate a slightly lower future earnings may value the stock slightly lower than its present earnings may warrant. The drop is not significant and does not reflect a steady trend; therefore investors should not look to sell, especially after analyzing past and future growth rates. Book value per share has increased 23.5 percent in the past five years meaning the net worth has increased significantly. The 0.892 beta coefficient means that the security's price will be less volatile or risky than the market. Nike’s price earnings to growth ratio (PEG Ratio) is 1.8. Though analysts believe a PEG ratio below one is preferable, the precision of the PEG ratio varies by inputs. Using historical growth rates can suggest an inaccurate PEG ratio if future growth rates are anticipated to differ from historical growth rates. On the other hand, Current estimates for earnings per share are expected to increase from 3.62 to 4.15 within the next year and a half. According to Nike’s history, expected performance and continual expansion investors should buy. Nike’s earnings growth rate is forecasted to decrease from 21 percent to 15 percent and leveling out at 13 percent for the next five years along. Taking into account the slight increase of risk free rate to 3 percent, 0.89 beta coefficient, 6
Nike is the worlds leading designer, marketer, and distributor of athletic footwear, apparel, equipment and accessories. Nike is an international sporting goods brand that serves athletes with the best products for over 40 years. Nike is a very well known brand that all athletes look at with high quality and performance. Some of the many products Nike has to offer range from clothing for men, women and kids, sporting equipment, sunglasses, shoes, watches and backpacks. The corporation continuously launches new products for consumers every year and responds to consumer feedback. Nike listened to the consumers’ feedback about their shoes regarding the desired color scheme of the shoes. Since customers …show more content…
The current ratio of 2.72 compared with the industry average of 2.59 indicates that Nike's safety factor to meet maturing short-term obligations is slightly high. Capital Lease obligation for fiscal year 2014 was $74 million. Cash provided by operations was $3.003 billion for fiscal 2014 compared to $2.968 billion for fiscal 2013. With capital expenditure of $880 million, free cash flows were $2.123 billion. According to 25 analysts, Nike’s forward P/E ratio is 27.3 and the trailing P/E ratio was 30.40, the company will generate a slightly lower future earnings may value the stock slightly lower than its present earnings may warrant. The drop is not significant and does not reflect a steady trend; therefore investors should not look to sell, especially after analyzing past and future growth rates. Book value per share has increased 23.5 percent in the past five years meaning the net worth has increased significantly. The 0.892 beta coefficient means that the security's price will be less volatile or risky than the market. Nike’s price earnings to growth ratio (PEG Ratio) is 1.8. Though analysts believe a PEG ratio below one is preferable, the precision of the PEG ratio varies by inputs. Using historical growth rates can suggest an inaccurate PEG ratio if future growth rates are anticipated to differ from historical growth rates. On the other hand, Current estimates for earnings per share are expected to increase from 3.62 to 4.15 within the next year and a half. According to Nike’s history, expected performance and continual expansion investors should buy. Nike’s earnings growth rate is forecasted to decrease from 21 percent to 15 percent and leveling out at 13 percent for the next five years along. Taking into account the slight increase of risk free rate to 3 percent, 0.89 beta coefficient, 6