FINANCIAL ANALYSIS OF NIKE

Fiscal 2011 was a rewarding and challenging year. NIKE, Inc. delivered record revenue and
earnings. They did it by leveraging their resources and relentlessly pursuing biggest growth
opportunities. That kind of laser focus enables NIKE to navigate an ever-changing
macroeconomic landscape while continuing to deliver amazing products and experiences to
the consumers. And that creates value for their shareholders.
1. BALANCE SHEET
Period Ending
Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets

31-May2011

31-May2010

31-May2009

1,955,000
2,583,000
3,450,000
2,715,000
594,000

3,079,000
2,067,000
2,899,000
2,041,000
873,000

2,291,100
1,164,000
3,156,300
2,357,000
765,600

Total Current Assets

Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges

11,297,000
2,115,000
205,000
487,000
894,000

10,959,000
1,932,000
188,000
467,000
873,000

9,734,000
1,957,700
193,500
467,400
897,000

Total Assets
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities

14,998,000

14,419,000 13,249,600

3,571,000
387,000
-

3,218,000
146,000
-

2,902,100
374,900
-

Total Current Liabilities

Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

3,958,000
276,000
921,000
-

3,364,000
446,000
855,000
-

3,277,000
437,200
842,000
-

Total Liabilities

5,155,000

4,665,000

4,556,200

Stockholders' Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

3,000
5,801,000
3,944,000
95,000

3,000
6,095,000
3,441,000
215,000

300
2,800
5,451,400
2,871,400
367,500

Total Stockholder Equity

9,843,000

9,754,000

8,693,100

Net Tangible Assets

9,151,000

9,099,000

8,032,200

2. INCOME STATEMENT
Period Ending
Total Revenue
Cost of Revenue
Gross Profit
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring
Others

30-May30-May30-May2011
2010
2009
20,862,000 19,014,000 19,176,000
11,354,000 10,214,000 10,572,000
9,508,000

8,800,000

8,604,000

6,693,000
-

6,326,000
-

6,150,000
596,000
-

2,815,000

2,474,000

1,858,000

Income from Continuing Operations

Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest

33,000
2,844,000
2,844,000
711,000
-

49,000
2,517,000
2,517,000
610,000
-

89,000
1,957,000
1,957,000
470,000
-

Net Income From Continuing Ops

2,133,000

1,907,000

1,487,000

Total Operating Expenses

Operating Income or Loss

Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes

Net Income
Preferred Stock And Other Adjustments

2,133,000
-

1,907,000
-

1,487,000
-

Net Income Applicable To Common

Shares

2,133,000

1,907,000

1,487,000

Other Items

3. CASH FLOW ANALYSIS

Period Ending

30-May-2011 30-May-2010

30-May2009
1,487,000

Net Income
2,133,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation
358,000
Adjustments To Net Income
29,000
Changes In Accounts Receivables
(273,000)
Changes In Liabilities
151,000
Changes In Inventories
(551,000)
Changes In Other Operating Activities
(35,000)

1,907,000

Total Cash Flow From Operating Activities

1,812,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
(432,000)
Investments
(560,000)
Other Cash flows from Investing Activities
(29,000)

3,164,000
(335,000)
(932,000)
(1,000)

(456,000)
(328,000)
(14,000)

Total Cash Flows From Investing Activities

(1,021,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid
(555,000)
Sale Purchase of Stock
(1,514,000)
Net Borrowings
(8,000)
Other Cash Flows from Financing Activities
-

(1,268,000)

(798,000)

(505,000)
(377,000)
(32,000)
-

(467,000)
(462,000)
(7,000)
25,100

Total Cash Flows From Financing Activities

Effect Of Exchange Rate Changes

(1,972,000)
57,000

(1,061,000)
(47,000)

(734,000)
(47,000)

Change In Cash and Cash Equivalents

(1,124,000)

788,000

157,000

396,000
167,000
182,000
297,000
285,000
(70,000)

383,000
278,000
(238,000)
(220,000)
32,000
14,000
1,736,000

4. RETURN ON EQUITY- NIKE

ROE=100Net income Total shareholders' equity
= 100 2,133 9,843 = 21.67%
Nike Inc.'s ROE improved from 2010 to 2011.
5. RETURN ON ASSETS- NIKE
ROA = 100 Net income Total assets
= 100 2,133 14,998 = 14.22%
Nike Inc.'s ROA improved from 2010 to 2011.
6. RETURN ON SALES- NIKE
-

Gross Profit Margin:

Gross profit margin = 100 Gross margin Revenues
= 100 9,508 20,862 = 45.58%
Gross profit margin indicates the percentage of revenue available to
cover operating and other expenditures

Operating Profit Margin:

Operating profit margin = 100 Operating income Revenues
= 100 2,815 20,862 = 13.49%
A profitability ratio calculated as operating income divided by revenue.

Net Profit Margin

Net profit margin = 100 Net income Revenues
= 100 2,133 20,862 = 10.22%
An indicator of profitability, calculated as net income divided by
revenue.

NIKE
FINANCIAL STATEMENTS AND ANALYSIS

SUBMITTED BY: MIDHULAJ N

SUBMITTED TO: PROF REMANAN