Question

Evaluate the financial information of Nike (NKE NYSE) the company's annual report.

The body of the paper should include the following items:

1. Why you selected this particular company?
2. Review the financial statements, including footnote disclosures, for the current and prior years and discuss the financial position of the company and any significant events that have occurred and will be happening soon that have the ability to affect company performance.
3. Discuss the company’s position in regard to the current stock market. What is the current stock price and what are the trends over the last three years (Hint: trends can be shown in a graph)? Discuss any information from the annual report which highlights the market position of the company.
4. Describe significant current news or information about the company using The Wall Street Journal or similar sources. Comment on the news and your opinion of how this news will/did affect the company's future.

Answer 1

Q: Financial Analysis Of Nike Inc and News:

Nike inc is the American apparels,accessories and sports equipements company. The reason of choosing this company is that it has very good brand image and reputation. Besides it has sponsership of many sports event and tournaments. I like sports nike is the favourite brand for me. Kendrik Lamar is the newest brand ambassador for Nike inc. This company was founded in 25, january 1964 in oregon,United States of America.

Founders of the company are Phill Knight and Bill Bowerman

Head Quarter : Oregon, U.S.A

CEO: John Donahoe and Mark Parker

Financial Analysis:

As per the Annual report , the operation of the company is divided into four broad divisions which are North America, Europe and middle east africa, Greater China, Asia pacific & Latin America. The revenue as a whole for the financial year 2017 was $ 34,350 million, in year 2018 $36,397 and in year 2019 it was $39,117 million. It shows that revenue is approximately increasing To manage credit related market risk the copmapny has prepared strict guideline to tackle it. The major financial institutions do derivative transactions. The notional amount of derivative transactions was as of 31st may 2019 , $459 million.

Foot notes: The company have 401k savings and profit sharing plans, where all U.S employees are able to participates. The company also have long term incentive plans for its employees and deferred compensated plsn for directors.

The basic earning per share for year 2019 is $2.55 and dileps is $ 2.49. Foe year 2018 eps $ 1.19 and dileps was $1.17. so its EPS is increased from previous years.

News:

• The company has innovated new prototype of Nike air zoom Alphafyi which will boost its sale in coming future.
• It also launched a sustainable design which can increase its sale in future.

Stock price:

$ 93.75 as of 22 may 2020. The stock price of nike inc in year 2019 was around $76 - $89 which was increased in 2020 also reached $ 102 in 23 january 2020.

As per Wall street journal The nike inc has hit all time high of $ 92.79 stock price in stock exchange september 25 2019.

The stock price of Nike inc starting from 2016 to 2020 january varies and shown above scatter chart . Data shows the stock price of Nike inc in the month of january of every year starting from 2016 to 2020. Due to continous innovation in products and services, the results is reflected through the stock price.