Financial Statement Analysis

FINANCIAL
STATEMENT
ANALYSIS
(WORD COUNT:-2995)

Contents
ANALYST TEARSHEET...............................................................................................................3
COMPANY PROFILE....................................................................................................................3
Industry Analysis.............................................................................................................................4
Competitor Analysis........................................................................................................................6
Business model and corporate strategy............................................................................................7
Company’ financial statements........................................................................................................9
Ratio Analysis................................................................................................................................10
Company Valuations.....................................................................................................................13
Free cash flow model.....................................................................................................................14
References......................................................................................................................................17
Appendix........................................................................................................................................19

ANALYST TEARSHEET
The purpose of financial statement research is to determine patterns and connections
between accounting policies. Integrated reporting and outside consumers of financial reports
(including such experts, bankers, and buyers) must assess a return on equity, stability, and
stability. Trend analysis, horizontal analysis declarations, and financial ratios are the most
popular approaches for working capital management. This report based on the Nike inc. Nike,
Inc. is an American multinational business that designs, develops, manufactures, and markets
sneakers, clothing, technology, collectibles, and services to a wide range. The firm is based in the
Washington metropolitan region, near Beaverton, Oregon. In this report consist of PEST
analysis, SWOT analysis, Porters five force model and business model. Along with discuss about
the company’s financial statement, dividends model and free cash flow model.
COMPANY PROFILE
NIKE, named after the Greek goddess, is a group of shoes and clothes. Designs, creates
and offers a selection of items that help play b-ball and soccer (football), just like running,
people training and other activity sports. Under the named image, NIKE also advertises
children's sportswear and various ugly and funny exercises; also sells functional clothing under
the Converse. The group, which generates approximately 60% of its contracts outside of the
United States, sells through more than 1,090 stores worldwide and web-based corporate websites
and a large number of sales accounts, self-buyers, licensees and resellers. A customer in North
America accounts for approximately 40% of total revenue (Frisch, 2008).
Operations
NIKE branded items, which account for 95% of total revenue, are based on six main classes:
Running, NIKE Basketball, Jordan Brand, Football, Coaching, and Sportswear (active lifestyle
items). NIKE shoes are the driving force behind the organizational offer, obtaining over 60% of
contracts and led by the famous Jordan Brand and various departments. NIKE Clothing
represents approximately 30% of contracts and NIKE Equipment (uniforms, socks, sports balls,
eyes, watches, IT equipment, clubs, protections and other hardware intended for sports exercises)
approximately 5% (Kreng and Wang, 2013).

Geographic accessibility
NIKE is headquartered near Beaverton, Oregon; there is a 400-land site with over 40 structures.
It also has significant territorial control in Hilversum, the Netherlands (for the EMEA region)
and Shanghai, China (for the Greater China region) and branch and customer locations in over 50
different countries.
The organization creates almost 40% of deals in North America (for the most part the US) with
another quarter in Europe, the Middle East, and Africa. More noteworthy China represents about
20% of income and some 15% for the remainder of the Asia-Pacific district and Latin America
(Masaviru, 2016).
Industry Analysis
Nike, fully known as "Nike, Inc.", is an international company based in the United States that
provides functional and popular apparel around the world. Founded in 1964, Nike serves to
"inspire and promote every competitor on the planet". Despite being one of the largest gaming
and decoration apparel groups in the world, Nike must maintain a high level in its impressive
market.
Political
The political parts are especially crucial to the demise of a group - the part we don't see
regularly. Most of the current policy changes are only about how an organization can deliver its
products or the profit it is making, for example. For Nike, some of these are:
The United States, Nike's "home country," so to speak, has significant development deals that are
particularly important to this group. These include low loan costs and high costs around the
world.
Economic
Nike sells mid-range items, so they're not as powerful against cash parties as others, but
everything considered here is part of the economic factors: