The Financial Statement Of Nike, Inc.

Bill Bowerman and Phil Knight started Nike Inc. in 1971, formally known as Blue Ribbon Sports. Bill Bowerman was a former track and field coach at the University of Oregon, and Phil Knight was a student-athlete at the University of Oregon. After numerous years of supplying under Blue Ribbon Sports, the two decided to enter the athletic shoe manufacturing business. The first employee of the company was Jeff Johnson, who helped them with branding what is known today as NIKE Inc.

NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf

How important is it for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals?

- Nike should be able to cater to the target markets specific needs in fields of sports, fashion, and lifestyle, Nike would be able to widen its consumer base and generate more revenue.

The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

is a growth company. Over the last 10 years, we’ve more than doubled our revenue, and they have stated “we believe we’ll deliver $30 billion in revenue by FY15 and $36 billion by FY17.” Since we published our FY10/11 Sustainable Business Performance Summary, our overall employee base grew to approximately 48,000 at the end of FY13, an increase of 10,000 employees. We expect strong growth in Running, Basketball, Football, Men’s Training, Sportswear, Women’s Training and Direct to Consumer sales. As we look forward, we believe that sustainability is one of the key drivers that will catalyze innovation and lead us toward continued growth. NIKE, seeks to deliver shareholder value through sustainable growth. One of the ways we will achieve this goal is to find avenues to reach our long-term vision of decoupling profitable growth from constrained resources. The CEO shared that they are working to integrate sustainability into every aspect of our business. Our aim is to challenge, push and explore ways that change the game entirely for materials, design and manufacturing. We don’t grow just to get bigger. We grow to be better and do

As Nike is a multibillion dollar company, Nike has its own way of recruiting new potential employees. As the same time, there will be some weaknesses in its company’s recruitment and selection policies and procedures. Nike, Inc. has boundless chances to fuel beneficial development and further bolstering drive good fortune. Nike’s pioneers work consistently to guarantee Nike, Inc. understands its potential by rousing each one of its more than 40,000 workers to understand their potential. Human Resources experts at Nike, Inc. work as stewards of association adequacy, ability and change. The capacity attempts to guarantee that Nike, Inc. has capable, differing and comprehensive groups composed viably against Nike's greatest

Nike Inc. is a very successful publicly traded sportswear and equipment company based in the United States. Nike is a multi-national and Fortune 500 company. It has reached achievements in their innovation in products that Nike has become one of the most recognized companies today and companies dream to have what Nike has created. The main headquarters for the company is in the Portland metropolitan area near Beaverton, Oregon. Nike leads the world in supplying athletic apparel and shoes. Nike shows how devoted they are in the satisfaction of their customer’s needs that it shines upon their mission statement and encompasses their vision. Nike ensures to go far and beyond expectations so that their customers receive quality products and services. Nike was founded in 1964 as Blue Ribbon Sports, but goes back to the 1950’s, and with their extensive history it only adds up to its impressive reputation in the Sports industry.

Investing in a company has certainly changed over the years. Financial information is literally at one's fingertips via the internet. In today's fast paced corporate environment companies are under tremendous scrutiny to maintain their edge. The company I am evaluating is NIKE. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet. This information is designed to assist a potential investor.

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

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,)

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”