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

Outlines I. Background -------------------------------------- 3 II. financial Ratios analytic thinking ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working ceiling Management ---------------------- 13 V. Dividend form _or_ system of government and Tax Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a operate room corporation incorporated in 1968, and Reebok International Ltd., a mum corporation nonionic in 1979, are both spheric companies engaged in the design and merchandiseing of sports and fitness products. We allow for analyze their past cardinal years financial reports to estimate who would be the preferred considerable caller in the stock market. Before we beat analyzing financial statements, we should go in mind that our analyses are to mitigate understand the compan ys performance. then based on it, we predict the next potential investiture opportunity. And we will examine these two companies finished analyzing: profitability ratios, assets usage ratios, capitalization ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We first compare revenues, ROS, thoroughgoing(a) margin, operating profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 similitude 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 unmatchable of its bi ggest domestic footwear distributors, but it! s transnational business is booming. Obviously, the U.S. gymnastic footwear market is crucial to Nike, and its working to find central distribution instead of the lost Foot Locker space. besides 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 explore on rebuilding its brand and returning to glory, its focusing a great deal of energy on its U.S. footwear Through... If you lack to cash in ones chips a full essay, order it on our website: OrderCustomPaper.com

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