The Financial Performance Analysis of Nike Inc: with Special Reference Year 2015 Annual Report

Abstract

Nike’s financial statement was analysed and studied thoroughly to understand Nike`s financial performance. That financial statement includes balance sheet, income statement and cash flow statement. The financial performance of Nike has evaluated using methods of Horizontal analysis, vertical analysis tends analysis and selected key ratios for improvements to increase cash flow and improve dividend and reduce labilities. Therefore, analysed company`s latest annual report that is the 2015 annual report ending May 31^st. That latest company annual report data was compared with the data from last five years from 2010 to 2015 to gain a understanding of company`s performance, which was shown in the trends analysis. According to the analysis data, recommendations have been given to ensure the company`s revenue and reduce liabilities. All the recommendation and suggestions were made according to key ratios which will directly influence  company`s performance: mainly the net profit margin, current ratios, quick ratio, and debt to equity ratio, earning per share ratio, working capital turn over and cash return on capital investment.

Keywords : Nike, ratio analysis, Vertical analysis, Horizontal analysis, financial   performance