A Financial Ratio Quarterly Trend Analysis of Nike, Inc.
Topics: Financial ratios, Financial ratio / Pages: 18 (4477 words) / Published: Feb 9th, 2012

A Financial Ratio Quarterly Trend Analysis of

Nike, Inc.

Stock Symbol: NKE

Listed on the New York Stock Exchange

In Partial Fulfillment of the Requirements of the Course:

FIN 6406

Report Completed By:

1. Introduction

A financial ratio quarterly trend analysis was completed to provide the reader with a clear assessment of the financial health of the company: NIKE International. Just knowing that this company chose a symbol that references the winged goddess of victory seems to have been a premonition for the designer of the ‘swoosh’ as well as the founder, Phil Knight, of NIKE. (Hinker,)

Our team chose this corporation to analyze NIKE’s financial data because: • NIKE is easily recognizable as a financially strong company after producing a high-quality product in their athletic shoes. • Researching a company with such level of recognition supported easier access to information for internationally based team members. • NIKE athletic shoes also supported the group’s ability to make comparisons with another company such as Adidas; • Knowing that the company started very small and grew to what seems a limitless boundary seemed intriguing to us and promoted a desire to understand their financial growth.

The team chose three significant websites: MSN Money, NIKE and Yahoo Finance for our research but included other sites to augment the data in this report. We obtained financial statements from NIKE to analyze the company’s quarterly trends using the last four quarters of information and compared them to Adidas, the second largest company in the world after NIKE for manufacturing sporting goods.

The team then created a SWOT – strength, weakness, opportunity and threat analysis on NIKE to incorporate qualitative insight to the financial data. While financial data and a SWOT assessment helps the reader understand the state and direction of this company, an analysis would not be complete without assessing the company’s record of ethical compliance.

Bibliography: McGirt, Ellen. (2010). How nike 's ceo shook up the shoe industry . Fast Company, Retrieved from http://www.fastcompany.com/magazine/148/artist-athlete-ceo.html Mickle, Tripp Nike Inc – Company Financial Statemenst (NKE): Interim Balance Sheet – MSN Money, Retrieved May 31, 2011, from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?1stStatement=Balance. NIK, Inc. Reports Fiscal 2011 Third Quarter Results – Marketwatch, Retrieved May 26, 2011 from http://www.marketwatch.com/story/nike-inc-reports-fiscal-2011-third-quarter-results-2011. Nike,inc. revenue performance. (2011). Letter to Shareholders, Retrieved from http://media.corporate-ir.net/media_files/IROL/10/100529/nike-ar-20100804/index.html#select_financials Nike shares outstanding NKE Analyst Estimates Nike Inc. Common Stock Stock-Yahoo! Finance, Retrieved May 30, 2011, from http://finance.yahoo.com/q/ae?s+NKE+Analyst+Estimates.

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