The Financial Condition of Nike Inc - Report Example

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Executive Summary

The paper aimed at evaluating the financial condition of Nike, which was also executed by comparing with its competitor, i.e. Puma. In this study, both quantitative and qualitative data were used that were collected from credible secondary sources. Through the study, it is found that both the companies are in good financial positions, which is more encouraging with respect to Nike. The company has maintained good financial values in its various financial statements, ratios and the Altman Z score, which is mainly due to the effective strategic financial decisions. This is especially with respect to the improvement of working capital efficiency, reduction of selling and administrative costs, and deployment of capital effectively, and investment for economic growth. However, the study also recommended that the company should utilise its working capital effectively.

Table of Contents

Introduction5

Background5

Nike6

Data Analysis7

Revenue Analysis7

Ratio Analysis8

Profitability Ratio8

Liquidity Ratio12

Gearing Ratio12

Findings and Interpretation13

Qualitative Assessment22

Conclusions and Recommendations24

Reflection24

Summary26