Finance Second Essay
Introduction
As a member of a small team of Investment Company, I need to find out and evaluate the potential investment opportunity by using investment theory and practice. In this way, the chosen company is Nike as it is assumed as the most preferred investment opportunity.
1. Critical analysis of strengths and weakness of NIKE by using financial ratios and statistical analysis
As a potential investor, I need to analyse critically the weakness and strengths of NIKE by analysing the ratios that I’ve calculated.
The current ratio explains the relationship between current assets and current liabilities. In 2010, NIKE faced 3.259 as working capital that gradually decrease with the passage of time and in 2014, it was 2.724, …show more content…
Value is created in the enterprise when income or wealth is generated large enough to cover the cost all sources of financing resources invested in the business. Enterprise Value as something that can be "coldly calculated"; only must be aware of the financial structure and capital structure and proper administration of investments and financing. However, this does not is fully as well as that includes external situations, on which the company, its directors and shareholders they have no control (Systematic Risk). For example, it is mentioned that actions and decisions of government, random behaviour of the economy, public reaction to the company or its products, market growth, risk business or market is not taken into account planning, …show more content…
It is noted that EPS for NIKE is 2.4 that is lower than with the comparative firms that has many factors, which manipulates the ratio that can be used with investment decision. 4. Specific Techniques Used in Management of Working Capital Including Cash and Inventory
Chosen company for this question is Adidas and therefore, different techniques of working capital will be analysed by Adidas. Working capital management includes the relationship between an organisation’s short-term assets and short-term liabilities. The main objective of working capital management is to make sure that the company is sustained with its operations and holds sufficient ability that satisfies maturing short-term debt and operational expenses. Management of working capital includes managing inventories, payables, receivables, and cash.
Cash
In assets, the cash of Adidas has fluctuating effect, which means that in 2010, the company was with 1.23 billion that went up and down till 2014 and in 2014; the company was with cash of
Introduction
As a member of a small team of Investment Company, I need to find out and evaluate the potential investment opportunity by using investment theory and practice. In this way, the chosen company is Nike as it is assumed as the most preferred investment opportunity.
1. Critical analysis of strengths and weakness of NIKE by using financial ratios and statistical analysis
As a potential investor, I need to analyse critically the weakness and strengths of NIKE by analysing the ratios that I’ve calculated.
The current ratio explains the relationship between current assets and current liabilities. In 2010, NIKE faced 3.259 as working capital that gradually decrease with the passage of time and in 2014, it was 2.724, …show more content…
Value is created in the enterprise when income or wealth is generated large enough to cover the cost all sources of financing resources invested in the business. Enterprise Value as something that can be "coldly calculated"; only must be aware of the financial structure and capital structure and proper administration of investments and financing. However, this does not is fully as well as that includes external situations, on which the company, its directors and shareholders they have no control (Systematic Risk). For example, it is mentioned that actions and decisions of government, random behaviour of the economy, public reaction to the company or its products, market growth, risk business or market is not taken into account planning, …show more content…
It is noted that EPS for NIKE is 2.4 that is lower than with the comparative firms that has many factors, which manipulates the ratio that can be used with investment decision. 4. Specific Techniques Used in Management of Working Capital Including Cash and Inventory
Chosen company for this question is Adidas and therefore, different techniques of working capital will be analysed by Adidas. Working capital management includes the relationship between an organisation’s short-term assets and short-term liabilities. The main objective of working capital management is to make sure that the company is sustained with its operations and holds sufficient ability that satisfies maturing short-term debt and operational expenses. Management of working capital includes managing inventories, payables, receivables, and cash.
Cash
In assets, the cash of Adidas has fluctuating effect, which means that in 2010, the company was with 1.23 billion that went up and down till 2014 and in 2014; the company was with cash of