Phân tích tài chính công ty Nike

Group 4 members: TRẦN TUẤN ANH VÕ HOÀNG TUẤN ANH TRẦN NHẬT ĐAN THANH NGUYỄN THỊ THỦY VÕ THỊ THÙY TRANG Date: 23th April, 2015 1 Financial And Decision Making NIKE Inc. 2 Table of content  Company profile  SWOT Analysis  Financial performance analysis  Capital Structure Analysis  Stock Price Determination  Recommendation  References 3 Company Profile • Established in 1968 by Phil Knight • Head quarter : Beaverton, Oregon • 48,000 employees • Revenue in 2014: $ 27.8 billion 4 PRODUCTs Nike is manufacturing many different product ranges such as footwear, apparels and accessories, etc 5 SWOT ANALYSIS • Outsourcing • Strong cash low • Diversified range of product. • Price sensitive • Emerging market growth. • Direct to customer . • Market competitio n • Price competitiv e 6 Financial performance analysis 1. Liquidity ratios 2. Asset Management ratios 3. Profitability ratios 7 1. Tools that help us determine the financial health of a firm’s 2. Compare a company’s financial ratios with its ratios in previous year 3. Compare a company’s financial ratios with those of its industry Financial performance analysis 8 1. Liquidity ratios: The current ratio is balance-sheet financial performance measure of company liquidity. Quick Ratio: measures the ability of the firm to meet its debt payments on short notice Financial performance analysis 9  Current ratios= current assets divided by current liabilities Financial performance analysis Table 1.1 2010 2011 2012 2013 2014Average Current ratios 3.3 2.9 3 3.5 2.7 3.08 10 Financial performance analysis 2010 2011 2012 2013 2014 Average 0 0.5 1 1.5 2 2.5 3 3.5 Current ratios Current ratios In 2014 Nike have a good manage, current ratios lower than previous year ( 2010,2011, 2012, 2013) Average 5 year: 3.08 [...]... 4,665.00 5,155.00 5,084.00 Total Equity 10,824.00 11,156.00 10,381.00 Debt/Equity Ratio 0.43 0.46 0.49 Market 1.12 0.98 0.94 Benchmark 3,926.00 5,027.00 2,502.00 2,743.00 6,428.00 9,843.00 0.65 7,770.00 9,754.00 0.80 0.92 0.94 Source: Based on data from Nike Inc annual reports and Stock Analysis on Net (in millions) NIKE s CAPITAL STRUCTURE ANALYSIS NIKE s Debt-to-Equity ratio 31-May-14 31-May-13 31-May-12... income/average equity Table 1.6 2010 2011 2012 2013 2014Average ROE 0.207 0.22 0.22 0.23 0.25 0.22 Financial performance analysis ROE = net income/average equity 0.25 0.24 0.23 ROE = net income/average equity 0.22 0.21 0.2 0.19 0.18 2010 2011 2012 2013 2014 Average Nike managed to efficiently use its capital Profit was on a continuous growth The company’s financial was independence and its high possibility to attract... 0.32 0.33 0.40 0.44 0.53 0.49 0.48 0.48 0.48 Source: Based on data from Nike Inc annual reports and Stock Analysis on Net (in millions) NIKE s CAPITAL STRUCTURE ANALYSIS NIKE s Debt-to-Capital ratio 31-May-14 31-May-13 31-May-12 31-May-11 Market Benchmark Debt/Capital Ratio 0.33 0.32 0.3 31-May-10 0.48 0.48 0.48 0.49 0.53 0.44 0.4 NIKE s CAPITAL STRUCTURE ANALYSIS D/e ratio 31-May14 31-May13 31-May12... attract investment Investor want to see high return on equity ratio because this indicates that Nike company is using its investors’ funds effectively NIKE s CAPITAL STRUCTURE ANALYSIS Debt to capital Ratio: (or Debt ratio) indicates the percentage of debt that a company uses to finance its operation Debt ratio = total liabilities/ total asset NIKE s CAPITAL STRUCTURE ANALYSIS Debt ratio Total current... 1.5 1.4 1.3 1.2 1.1 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Nike have This ratio increase year by year from 2010 to 2012 this time have high efficiently to used its assets to generate sales 2013: lower efficiently 2014: increase and get high ratio Increase effeciently 5.5 Financial performance analysis  Profitability 1 2 ratios Gross profit margin Return on equity Financial performance analysis 1 Gross profit... 5 5.5 Nike gross margins improved largely due For fiscal 2014, the growth of Nike net income from continuing operations was positively affected by a year-over-year decrease in our effective tax rate In addition, diluted earnings per common share grew at a higher rate than net income due to a 1% decrease in the weighted average number of diluted Financial performance analysis 2.Return on equity = net... 0.98 1.41 1.38 1.24 Financial performance analysis Quick ratios 1.6 1.4 1.2 1 Quick ratios 0.8 0.6 0.4 0.2 0 2010   2011 2012 2013 2014 Average Average quick ratio of Nike in 5 year was 1.24 So Nike co has a normal quick ratio The ability of the firm to meet $1.24 debt payments $ 1 Financial performance analysis 1   Asset management ratios: Inventory turnover ratio Total asset turnover ratios Financial... millions) NIKE s CAPITAL STRUCTURE ANALYSIS NIKE s Debt-to-Equity ratio 31-May-14 31-May-13 31-May-12 31-May-11 0.94 0.92 0.94 0.98 Market Benchmark Debt/Equity Ratio 31-May-10 0.49 0.46 0.43 0.65 0.8 1.12 outcomes • S&P raised Nike credibility from “A+” to “AA-” • The future order has recorded up 13% in Europe • Sales increases 16% every year while the company extending its most power position in... structure and firm performance Debt and ROE: The use of debt lowers equity, and if equity is lowered more than net income, ROE would increase The relationship between capital structure and firm performance The relationship between capital structure and firm performance ROA and ROE growth have the same trend of slight increase proving that Nike has chosen a good financial structure to have positive impact... = COGS ( Net sales)/ Average inventory 10 8 6 4 1 Inventory turnover ratio = COGS ( Net sales)/ Average inventory 2 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5  Inventory turnover ratio of Nike company reduce year by year So Nike company manage is good Financial performance analysis 2 Total asset turnover ratio: sales/Average total assets Table 1.4 2010 2 Total asset turnover ratios 2011 2012 2013 2014 1.32 . performance analysis 8 1. Liquidity ratios: The current ratio is balance-sheet financial performance measure of company liquidity. Quick Ratio: measures the ability of the firm to meet its debt. Average 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Quick ratios Quick ratios  Average quick ratio of Nike in 5 year was 1.24  So Nike co. has a normal quick ratio. The ability of the firm to meet $1.24 debt payments $ 1 13 1. Asset. competitio n • Price competitiv e 6 Financial performance analysis 1. Liquidity ratios 2. Asset Management ratios 3. Profitability ratios 7 1. Tools that help us determine the financial health of a