Nike Inc

Nike, Inc.

Analyzing NIKE, Inc. annual 10k report, they present strong financials with a constant growth from the years 2012 to 2014. With 2.7 billion dollars in net income they are a solid company with very strong sales numbers at 28 billion. Nike, Inc. is an industry leader with constant growth margins (currently approx. 45%) year after year. They have a strong balance sheet, P & L and statement of cash flow. Nike, Inc. balance sheet reflects liquidity at 2.2 billion dollars, their A/R has increased from 3.1 billion dollars in 2013 to 3.4 in 2014 and their A/P has increased from 1.7 in 2013 to 1.9 in 2014 but they have an overall total equity of 10.8 billion dollars for 2014, down just a bit from the prior year. Nike, Inc. debt to equity is also acceptable and they have a very strong statement of cash flows, which tells that net income came from strong sales growth. One potential risk for Nike, Inc. could be the foreign exchange rate risk but overall they are a strong healthy company. Looking at Nike, Inc. Consolidated Statement of Shareholders’ Equity, year after year they continue to repurchase common stock bringing the value even higher which is a positive sign. When calculating Nike, Inc.’s EBIDA (Net income + depreciation + taxes & interest) will give you their true cash flow and you can see that they are doing very well and would be a great company to invest in!

References:

http://www.sec.gov/Archives/edgar/data/320187/000032018714000097/nke-5312014x10k.htm#sDEC0DE14F0EF7AAB10F47162AF647AE7