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

Outlines I. Background -------------------------------------- 3 II. Financial Ratios compendium ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working jacket Management ---------------------- 13 V. Dividend Policy and assess Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a exit room corporation unified in 1968, and Reebok International Ltd., a mum corporation nonionized in 1979, are both(prenominal)(prenominal) spheric companies engaged in the design and merchandiseing of sports and fitness products. We appropriate for analyze their past cardinal years financial reports to estimate who would be the preferred considerable association in the stock market place. Before we set about analyzing financial statements, we should keep in mind that our analyses are to palliate understand the companys performance. Then found on it, we predict the side by side(p) potential investing opportunity. And we leave alone examine these two companies destroyed analyzing: profitability ratios, assets utilization ratios, capitalisation ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We starting compare revenues, ROS, Gross margin, in operation(p) profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 Comparison of sales growth judge Growth judge         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 one of its jumbogest domestic footwear distri andors, but its transnational business is booming. Obviously, the U.S. athletic footwear market is life-or-death to Nike, and its working to find interchange distribution instead of the upset Foot Locker space. preserve at the same time, Nike is commission on its huge global business and has been making big successes overseas. Reebok, on the other hand, is in the opposite position. As a smaller company, and one present on rebuilding its filth and returning to glory, its focusing a great deal of zipper on its U.S. footwear Through... If you want to capital in ones chips a full(a) essay, order it on our website: Ordercustompaper.com

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