FINANCIAL ANALYSIS OF NIKE Fiscal 2011 was a rewarding and challenging year. NIKE, Inc. delivered record revenue and earnings. They did it by leveraging their resources and relentlessly pursuing biggest growth opportunities. That kind of laser focus enables NIKE to navigate an ever-changing macroeconomic landscape while continuing to deliver amazing products and experiences to the consumers. And that creates value for their shareholders. 1. BALANCE SHEET Period Ending
31-May2011
31-May2010
31-May2009
Assets
Current Assets Cash And Cash Equivalents
1,955,000
3,079,000
2,291,100
Short Term Investments
2,583,000
2,067,000
1,164,000
Net Receivables
3,450,000
2,899,000
3,156,300
Inventory
2,715,000
2,041,000
2,357,000
594,000
873,000
765,600
11,297,000
10,959,000
9,734,000
-
-
-
2,115,000
1,932,000
1,957,700
Goodwill
205,000
188,000
193,500
Intangible Assets
487,000
467,000
467,400
Accumulated Amortization
-
-
-
Other Assets
-
-
-
894,000
873,000
897,000
Other Current Assets Total Current Assets
Long Term Investments Property Plant and Equipment
Deferred Long Term Asset Charges Total Assets
14,998,000
14,419,000 13,249,600
Liabilities
Current Liabilities Accounts Payable
3,571,000
3,218,000
2,902,100
387,000
146,000
374,900
-
-
-
3,958,000
3,364,000
3,277,000
Long Term Debt
276,000
446,000
437,200
Other Liabilities
-
-
-
921,000
855,000
842,000
Minority Interest
-
-
-
Negative Goodwill
-
-
-
5,155,000
4,665,000
4,556,200
Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities
Deferred Long Term Liability Charges
Total Liabilities
Stockholders' Equity
Misc Stocks Options Warrants
-
-
-
Redeemable Preferred Stock
-
-
300
Preferred Stock
-
-
-
Common Stock
3,000
3,000
2,800
5,801,000
6,095,000
5,451,400
Treasury Stock
-
-
-
Capital Surplus
3,944,000
3,441,000
2,871,400
95,000
215,000
367,500
Total Stockholder Equity
9,843,000
9,754,000
8,693,100
Net Tangible Assets
9,151,000
9,099,000
8,032,200
Retained Earnings
Other Stockholder Equity
2. INCOME STATEMENT Period Ending
30-May2011
30-May2010
30-May2009
Total Revenue
20,862,000
19,014,000
19,176,000
Cost of Revenue
11,354,000
10,214,000
10,572,000
9,508,000
8,800,000
8,604,000
-
-
-
6,693,000
6,326,000
6,150,000
Non Recurring
-
-
596,000
Others
-
-
-
Total Operating Expenses
-
-
-
2,815,000
2,474,000
1,858,000
33,000
49,000
89,000
2,844,000
2,517,000
1,957,000
-
-
-
2,844,000
2,517,000
1,957,000
711,000
610,000
470,000
-
-
-
2,133,000
1,907,000
1,487,000
Discontinued Operations
-
-
-
Extraordinary Items
-
-
-
Effect Of Accounting Changes
-
-
-
Gross Profit
Operating Expenses Research Development Selling General and Administrative
Operating Income or Loss
Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events
-
-
-
2,133,000
1,907,000
1,487,000
-
-
-
2,133,000
1,907,000
1,487,000
Other Items Net Income
Preferred Stock And Other Adjustments Net Income Applicable To Common Shares
3. CASH FLOW ANALYSIS Period Ending Net Income
30-May-2011 30-May-2010 2,133,000
30-May2009
1,907,000
1,487,000
358,000
396,000
383,000
29,000
167,000
278,000
Changes In Accounts Receivables
(273,000)
182,000
(238,000)
Changes In Liabilities
151,000
297,000
(220,000)
Changes In Inventories
(551,000)
285,000
32,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation Adjustments To Net Income
Changes In Other Operating Activities Total Cash Flow From Operating Activities
(35,000) 1,812,000
(70,000) 3,164,000
14,000 1,736,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
(432,000)
(335,000)
(456,000)
Investments
(560,000)
(932,000)
(328,000)
(29,000)
(1,000)
(14,000)
(1,021,000)
(1,268,000)
(798,000)
(555,000)
(505,000)
(467,000)
(1,514,000)
(377,000)
(462,000)
(8,000)
(32,000)
(7,000)
Other Cash flows from Investing Activities Total Cash Flows From Investing Activities
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities
Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents
(1,972,000)
57,000 (1,124,000)
-
25,100
(1,061,000)
(734,000)
(47,000)
(47,000)
788,000
157,000
4. RETURN ON EQUITY- NIKE ROE=100×Net income ÷ Total shareholders' equity = 100 × 2,133 ÷ 9,843 = 21.67%
Nike Inc.'s ROE improved from 2010 to 2011. 5. RETURN ON ASSETS- NIKE ROA = 100 × Net income ÷ Total assets = 100 × 2,133 ÷ 14,998 = 14.22%
Nike Inc.'s ROA improved from 2010 to 2011. 6. RETURN ON SALES- NIKE
-
Gross Profit Margin: Gross profit margin = 100 × Gross margin ÷ Revenues = 100 × 9,508 ÷ 20,862 = 45.58% Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures
-
Operating Profit Margin: Operating profit margin = 100 × Operating income ÷ Revenues = 100 × 2,815 ÷ 20,862 = 13.49% A profitability ratio calculated as operating income divided by revenue.
-
Net Profit Margin Net profit margin = 100 × Net income ÷ Revenues = 100 × 2,133 ÷ 20,862 = 10.22% An indicator of profitability, calculated as net income divided by revenue.
NIKE FINANCIAL STATEMENTS AND ANALYSIS
SUBMITTED BY: MIDHULAJ N SUBMITTED TO: PROF REMANAN