Nike vs. Reebok Financial Results Analysis (Fiscal Year 1998-2002)

Outlines I. Background -------------------------------------- 3 II. pecuniary Ratios compendium ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working ceiling Management ---------------------- 13 V. Dividend polity and Tax Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a operate room corporation incorporate in 1968, and Reebok International Ltd., a mum corporation nonionised in 1979, are both spheric companies engaged in the design and merchandiseing of sports and fitness products. We allow for analyze their past v years financial reports to estimate who would be the preferred considerable troupe in the stock market. Before we beat analyzing financial statements, we should slide by in mind that our analyses are to mitigate understand the companys performance. then based on it, we predict the next potential investment opportunity. And we will examine these two companies finished analyzing: profitability ratios, assets use of goods and services ratios, capitalization ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We first compare revenues, ROS, unwashed margin, operating profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 semblance of sales growth judge Growth rates         2002         2001         2000         1999         1998 NIKE         8.13%         4.26%         5.49%         2.49%         -8.13% REEBOK         4.51%         4.

45%         -1.19%         -10.07%         -11.50% Nikes sales growth was negatively impacted by matchless of its biggest domestic footwear distributors, but its transnational business is booming. Obviously, the U.S. acrobatic footwear market is crucial to Nike, and its working to find rally distribution instead of the lost Foot Locker space. make it at the same time, Nike is focusing on its huge transnational business and has been making big successes overseas. Reebok, on the other hand, is in the opposite position. As a smaller company, and one find out on rebuilding its brand and returning to glory, its focusing a great deal of energy on its U.S. footwear Through... If you require to cash in ones chips a full essay, order it on our website: OrderEssay.net

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