Nike Research: Liquidity & Working Capital
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I need help with this section of my research paper. I chose to do the research on Nike Shoes.
I have my intro, I am stuck on qualitative analysis section. Please provide any sources so I can do additional research.
3. From the section of the annual report titled(NIKE) Management's Discussion and Analysis of Financial Condition and Results of Operations provide the following:
a. From the subsection "Results of Operations" discuss major trends and issues relating to revenues, expenses, and earnings (profits) identified by the company. What does the company say about profitability/earnings?
b. From the subsection "Liquidity and Capital Resources" discuss major issues/trends the company has identified relating to cash flows and sources of liquidity. What does the company say about solvency/liquidity?
III. Quantitative Analysis
Provide the following:
Solvency and Liquidity (see chapter 2 for review of these ratios)
1. For the most recent and previous year list each current asset by account and compute the total current assets for each year.
2. For the most recent and previous year list each current liability by account and compute the total current liabilities for each year.
3. Compute the current ratio for each year.
4. Compute the working capital for each year.
5. From the Statement of Cash flows provide the Operating Cash Flows (Cash flows from operations) for both years.
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The response provides you a structured explanation of Nike research on its working capital and liquidity . It also gives you the relevant references.
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In compliance with BrainMass rules this is not a hand in ready assignment but is only guidance.
From the section Management's Discussion and Analysis of Financial Conditions and Result of Operations:
a), The major trends and issues identified by the company include the following. The gross margin is expanded by delivering innovative products, reducing product costs through efficiencies, automating supply chain, and increasing growth in its higher gross margin DTC business. Nike has reduced selling and administrative expenses by engaging the customer, investing in infrastructure that increases efficiency, and invests in growth areas including DTC business.
The company says several things about profitability and earnings. It ensures profitable business through diversification. It says it earns high twenties to low thirties percentage rate of return on invested capital. Further, it earns mid-teens earnings per share growth. The company also claims ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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