NIKE

inc.
 Nike, Inc. is an American multinational corporation that is
Company profile engaged in the design, development, manufacturing, and
worldwide marketing and sales of footwear, apparel, equipment,
accessories, and services. The company is headquartered near
Beaverton, Oregon, in the Portland metropolitan area. It is the
world's largest supplier of athletic shoes and apparel and a major
manufacturer of sports equipment, with revenue in excess of
US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of
2012, it employed more than 44,000 people worldwide. In 2014
the brand alone was valued at $19 billion, making it the most
valuable brand among sports businesses. As of 2017, the Nike
brand is valued at $29.6 billion.
The company was founded on January 25, 1964, as Blue Ribbon
Sports, by Bill Bowerman and Phil Knight, and officially became
Nike, Inc. on May 30, 1971. The company takes its name from
Nike, the Greek goddess of victory.
Products •Sports equipment
•Street fashions
•Shoes
•Jerseys
Nike organizational
structure
SWOT
Analysis Of
Nike Inc.
 SWOT Analysis of NIKE
Strength Weakness
1. Strong brand image 1. Labor controversies
2. Rapid innovation process 2. Limitations in the product mix
3. Extensive global production and 3. Limited presence in developing markets
distribution network 4. The retail sector is very price sensitive
4. Very competitive organization

Opportunities Threats
1. Improve labor/employment practices 1. Tough competition
2. Improve the product mix 2. Rapid technological innovation
3. Increase market presence in developing 3. Imitation
countries 4. Internal nature of trade
4. Product development
Comparative
Financial
Statement
(2016-2017)
FINANCIAL
RATIOS OF
Nike Inc.
Profitability 1. Gross Profit Rate 2. Return on Sales

= Gross Profit/Net = Net Income/Net Sales

ratios

Sales 4,240/34,350 = 0.12 or 12%

15,312/43,350 = 0.45
or 45%
 3. Return on Assets 4. Return on
Profitability Stockholders
= Net Income/Average
Total Assets = Net Income/Average
ratios
Stockholders Equity
= 4,240/22,319 = 0.19
or 19% 4,240/12,332.5 = 0.34
(23,259 + 21,379) / 2 = (12,407 + 12,258) / 2 =
22,319 12,332.5


Liquidity ratios 1. Current Ratio 2. Quick Ratio

= Current = Quick Asset/Current

Assets/Current Liabilities
Liabilities 9,856/5,474 = 1.80
16,061/5,474 = 2.93
(3,808 + 2,371 + 3,677
= 9,856)
 4. Working Capital
3. Cash Ratio
Liquidity ratios
= Current Assets -
= Cash + Short Term Current Liabilities
Investment/Current
16,061 - 5,474 =
Liabilities
10,587
6,179/5,474 = 1.13

(3,808 + 2,371 = 6,179)

 1. Receivable 2. Days Sale

Efficiency Ratios
Management Turnover Outstanding

= Net credit = 360 days/ Receivable

Sales/Average turnover
Accounts Receivable
360/9.93 = 36 days
= 34,350/3,459 =
9.93x

(3,677 + 3,241) / 2 =
3,459
Efficiency Ratios
3. Inventory Turnover 4. Days Inventory
Outstanding
Management

= Cost of Sale/Average
Inventory = 360 days/Inventory
19,038/4,946.5 = 3.85 Turnover
360 days / 3.85 = 93
days
(5,055 + 4838) / 2 =
4,946.5
 5. Accounts Payable 6. Days Payable
Turnover Outstanding

Efficiency Ratios = Net Credit =360 days / Accounts

Management
Purchases/Average Payable Turnover
Accounts Payable 360 Days / 3.68 = 98 days
19,255/5,228 = 3.68
(5,143 + 5,313) / 2 = 5,228
 Beg 4,838
 Purchase 19,255
 GAS 24,093
 End (5,055)
 COS 19,038
Leverage ratios
1. Debt Ratio 2. Equity Ratio

= Total = Total Equity/Total

Liabilities/Total Assets Asset
10,852/23,259 = 0.47 12,407/23,259 = 0.53
Leverage ratios 3. Debt – Equity Ratio

= Total Liabilities/Total Equity

10,852/12,407 = 0.87
Adidas
Ag
 Adidas is a multinational corporation, founded and

Company background
headquartered in Herzogenaurach, Germany, that designs and
manufactures shoes, clothing and accessories. It is the largest
sportswear manufacturer in Europe, and the second largest in
the world, after Nike. It is the holding company for the Adidas
Group, which consists of the Reebok sportswear company,
TaylorMade golf company (including Ashworth), Runtastic, an
Austrian fitness technology company, and 8.33% of Bayern
Munich, the football club. Adidas' revenue for 2016 was listed at
€19.29 billion.
Adidas' logo is three stripes, which is used on the company's
clothing and shoe designs as a marketing aid. The branding,
which Adidas bought in 1952 from Finnish sports company
Karhu Sports, became so successful that Dassler described
Adidas as "The three stripes company". The brand name is
uncapitalized and is stylized with a lower case "a".
 Adidas was founded by Adolf Dassler who made sports shoes in
his mother's scullery or laundry room in Herzogenaurach,
Germany after his return from World War I.
 Apparel Accessories
Sportswear 1. Adilette - Adilette was the
Products 1. Association football first ever pair of sandals made
by Adidas, originally
2. Baseball developed in 1963.
3. Basketball 2. Santiossage - is a uni-sex
4. Cricket slide-style sandal.
5. Golf 3. Adissage - is also a uni-sex
slide-style sandal.
6. Gymnastics
7. Lacrosse
8. Running
9. Skateboarding
10. Tennis
 Adidas
organizational
structure
SWOT
ANALYSIS OF
ADIDAS AG
 SWOT Analysis of ADIDAS
Strength
1. Legacy & heritage
2. Diversified portfolio
3. Strong financial position
4. Branding by creating touch points with
the community
Opportunities
1. Changing lifestyle
2. Market development
3. Expansion in product line
4. Increasing demand of premium products
Weakness
1. Premium price range
2. Outsourced manufacturing
3. Limited product line
4. High cost structure
Threats
1. Competition
2. Supplier dominancy
3. Government regulations
4. New competitors entering the market
FINANCIAL
RATIOS OF
ADIDAS
AG
Profitability

1. Gross Profit Rate 2. Return on Sales

ratios

= Gross Profit/Net = Net Income/Net

Sales Sales
10.703/21.218 = 0.50 1.100/2.218 = 0.05
Profitability
3. Return on Assets 4. Return on
ratios Stockholders

= Net Income/Average
Total Assets = Net Income/Average
Stockholders Equity
1.100/14.849 = 0.07
1,100/6461 = 0.17
(14,522 + 15,176) / 2 =
14,849 (6,450 + 6,472) / 2 =
6,461
Liquidity ratios 1. Current Ratio 2. Quick Ratio

= Current = Quick Asset/Current

Assets/Current Liabilities
Liabilities 3,918/6,291 = 0.62
8,645/6,291 = 1.37
1,598 + 5 + 2,315 =
3918
Liquidity ratios
3. Cash Ratio 4. Working Capital

= Cash + Short Term = Current Assets -

Investment/Current Current Liabilities
Liabilities 8,645 - 6,291 = 2,354
1,603/6,291 = 0.25
(1598+5) = 1,603
Efficiency Ratios 1. Receivable 2. Days Sale
Outstanding
Management
Turnover

= Net credit = 360 days/ Receivable

Sales/Average turnover
Accounts Receivable 360/9.40 = 38.30
21,218/2257.5 = 9.40
Efficiency Ratios
4. Days Inventory
Management
3. Inventory Turnover
Outstanding

= Cost of Sale/Average
Inventory = 360 days/Inventory
Turnover
10,514/3,727.5 = 2.82x
360 / 2.82 = 127 days
 5. Accounts Payable 6. Days Payable
Turnover Outstanding

Efficiency Ratios = Net Credit =360 days / Accounts

Management

Purchases/Average Payable Turnover

Accounts Payable
10,443/2,235.5 = 4.67
360 days/4.67 = 77
 Beg 3,763 days
 Purchase 10,443
 GAS 14,206
 End (3,692)
 COS 10,514
Leverage ratios
1. Debt Ratio 2. Equity Ratio

= Total = Total Equity/Total

Liabilities/Total Assets Asset
8,087/14,322 = 0.56 6,435/14,522 = 0.44
Leverage ratios
3. Debt – Equity Ratio

= Total Liabilities/Total Equity

8,087/6,435 = 1.26
COMPARISON
OF RATIOS
 Nike Inc. adidas AG
Profitability
Gross Profit Rate 0.45 0.50
ratios

Return on Sales 0.12 0.05

Return on Assets 0.19 0.07

Return on 0.34 0.17

Stockholders
 Nike Inc. adidas AG

Liquidity ratios
Current Ratio 2.93 1.37

Quick Ratio 1.80 0.62

Cash Ratio 1.13 0.25

Working Capital 10,587 2,354

 Nike Inc. adidas AG

EFFICIENCY RATIOS
MANAGEMENT Receivable Turnover 9.93 9.40

Days Sale Outstanding 36 days 38 days

Inventory Turnover 3.85 2.82

Days Inventory 93 days 127 days

Outstanding

Accounts Payable 3.68 4.67

Turnover

Days Payable 98 days 77 days

Outstanding
 Nike Inc. adidas AG
Leverage ratios
Debt Ratio 0.47 0.56

Equity Ratio 0.53 0.44

Debt – Equity Ratio 0.87 1.26