ipl-logo

Nike Financial Analysis Paper

1071 Words5 Pages

Abstract A U.S. Securities and Exchange Commission (SEC) form 10-K, otherwise known as a SEC 10k, is an annual report showing financial performance for that year. Inside this document you can find financial data, reports of operation and executive compensation among other information. Any company that is currently holding more than $10,000,000 in assets is required to file a form 10-k with SEC on a yearly basis. Introduction Nike was founded in 1964 and incorporated in 1967 under the laws of the State of Oregon. Philip Knight and Bill Bowerman are the founders of Nike. The company’s original name was Blue Ribbon Sports. In May of 1971, the company changed its name to Nike after the Greek goddess of victory. Nike is the world’s largest seller …show more content…

In 2015 Nikes accounts receivable was $3.358 billion compared to $3.434 billion in 2014. The allowance for uncollectible accounts receivable in 2015 was $78 million of which $24 million was classified as long-term and recorded in Deferred income taxes and other assets. The 78 million in 2015 was the lowest allowance Nike had experienced in the past 3 yrs. In 2013 the allowance for doubtful accounts was 91 million and in 2014 it was 104 million. Nike does not report an allowance for bad debts within the SEC-10K …show more content…

This is only to be expected as the company expands and has to buy new equipment. In 2015 the accumulated expenses totaled $606 million. It was $518 million in 2014 and $438 million in 2013. As of May 31, (In millions) 2015 2014 Land $ 273 $ 270 Buildings 1,250 1,261 Machinery, equipment and internal-use software 3,329 3,376 Leasehold improvements 1,150 1,066 Construction in process 350 247 Total property, plant and equipment, gross 6,352 6,220 Less accumulated depreciation 3,341 3,386 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 3,011 $ 2,834 Summary Nike’s future looks great. Each year they come out with new superior athletic products and their profits are astronomical. They have untapped potential. It looks likes the world’s largest apparel and footwear corporation is well-positioned to deliver long-term growth that is going to be extremely profitable. As long as there are people who play sports, work out, or just want have a good pair of shoes with a matching shirt this will only continue to fuel the growth momentum for Nike. Sorry Reebok, Adidas and Under

More about Nike Financial Analysis Paper

    Open Document