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Case Study on Nike VS Adidas

Added on - 20 Jan 2022

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Nike VS Adidas
Nike
NIKE, Inc., my main business, is an American-based corporation specializing in clothing,
accessories, footwear, equipment, and services development, design, marketer, seller, and
manufacturing. Nike prefers to work with well-known individuals and organisations across the
globe. Nike has become a household name and a symbol of sportsmanship because to its
widespread popularity (Chen et al, 2020).
Adidas
Adidas AG is a German multinational business. The business was founded in Herzogenaurach
and is headquartered there. Adidas manufactures and designs shoes, accessories, and apparel.
Adidas is the second biggest sportswear company in the world, behind Nike. Adidas prefers to
sponsor big global sporting events like the Olympics, FIFA World Cup, and UEFA Champions
League (Meng et al, 2021).
Ratio analysis
Current ratio
The current ratio refers to a company's capacity to repay its short-term financial commitments. A
positive indication for a company is a ratio greater than 1. Nike's current price-to-earnings ratio
is extremely high, and it's continuing to rise in a good direction. The company's short-term
financial commitments will be easy to pay (Liu et al, 2021).
Nike -
Adidas –
Quick ratio
The quick ratio, like the current ratio, has been altered to make it more liquid-prone.Inventory is
not included in the current assets as a result of the ratio. Nike's quick ratio follows the same
pattern as its current ratio, and it has been on an upward trajectory for the last three years.
Nike -
Total debt ratio
The debt ratio measures the amount of a company's assets that are supplied by its debt. Nike's
debt ratio will increase from 56% in 2018 to 74% in 2020, a trend that is not good for the
company.
Nike -
Adidas -
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