Organisational Appraisal Nike

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Organisational Appraisal of Nike with its competitiors

Ratios (Summary) -NIKE
Nike Inc., liquidity ratios
 
 | May 31, 2012| May 31, 2011| May 31, 2010| May 31, 2009| May 31, 2008| May 31, 2007| Current ratio| 2.98| 2.85| 3.26| 2.97| 2.66| 3.13|
Quick ratio| 1.82| 1.94| 2.32| 1.93| 1.68| 2.07|
Cash ratio| 0.97| 1.15| 1.53| 1.05| 0.84| 1.10|
Source: Based on data from Nike Inc. Annual Reports
http://www.stock-analysis-on.net/NYSE/Company/Nike-Inc/Ratios/Liquidity#Ratios-Summary

RATIO ANALYSIS OF NIKE WITH ITS COMPETITORS

Operating Margin| | | |
| 2009| 2008| 2007|
Industry Average| 7.84%| | |
Nike| 10.20%| 13.44%| 13.47%|
Adidas| 3.45%| 8.37%| 7.91%|
Under Armour| 9.62%| 9.64%| 14.68%|
K-Swiss| 15.44%| 7.19%| 11.50%|
| | | |
Profit Margin| | | |
| 2009| 2008| 2007|
Industry Average| 9.90%| | |
Nike| 7.75%| 10.11%| 9.14%|
Adidas| 2.36%| 5.96%| 5.39%|
Under Armour| 5.46%| 5.27%| 8.66%|
K-Swiss| 11.62%| 6.14%| 9.52%|
The difference in capital structure between these firms becomes apparent after reviewing the debt ratio and debt to equity ratio.  Nike and Under Armour prefer to use equity to raise funds (notice the lower Debt Ratio), whereas Adidas and K-Swiss tend to use more debt (notice the lower Debt to Equity). Debt Ratio| | | |

| 2009| 2008| 2007|
Industry Average| 35.2%| | |
Nike| 34.4%| 37.1%| 34.3%|
Adidas| 57.5%| 64.5%| 63.7%|
Under Armour| 26.7%| 32.1%| 28.2%|
K-Swiss| 12.3%| 17.8%| 13.9%|
| | | |
Debt to Equity| | | |
| 2009| 2008| 2007|
Industry Average| 59.9%| | |
Nike| 52.4%| 59.0%| 52.1%|
Adidas| 135.0%| 181.5%| 175.4%|
Under Armour| 36.4%| 47.3%| 39.3%|
K-Swiss| 114.0%| 121.7%| 116.2%|

VRIO
1) NIKE

Financial Resources
* The first resource we have analyzed based on the VRIO framework is the firm’s financial...
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