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

Outlines I. Background -------------------------------------- 3 II. pecuniary Ratios analysis ----------------------- 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 incorporate in 1968, and Reebok International Ltd., a mum corporation nonionized in 1979, are both spheric companies engaged in the design and merchandiseing of sports and fitness products. We allow for analyze their past five-spot years financial reports to estimate who would be the preferred considerable phoner in the stock market. Before we beat analyzing financial statements, we should halt in mind that our analyses are to mitigate understand the companys p erformance. and then based on it, we predict the next potential invest opportunity. And we will examine these two companies finished analyzing: profitability ratios, assets utilization ratios, capitalization ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We first compare revenues, ROS, vulgar margin, operating profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 relation 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 unrivalled 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 re-sentencing distribution instead of the lost Foot Locker space. uphold at the same time, Nike is focusing on its huge international business and has been making big successes overseas. Reebok, on the other hand, is in the opposite position. As a smaller company, and one anticipate on rebuilding its brand and returning to glory, its focusing a great deal of energy on its U.S. footwear Through... If you privation to cash in ones chips a full essay, order it on our website: OrderCustomPaper.com

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