10K Analysis -Nike final assignment

MBA 606

Final Project - Forecasting Your Company(Nike 10k 2022)

Be sure to include a cover page and References page for this assignment. For the publicly-traded company you selected to evaluate for this course(NIKE-2022 ), download their most recent 10K. Include the link to the financial statements as a reference on your References page. I cannot verify your answers without a link to the financial statements.

This assignment is worth 150 points due at the end of Module 8.

- Do the following in Excel:

· Common-size your Income Statements and Balance Sheets

· In addition to common-sizing, calculate the following:

· Sales Growth %

· PP&E (Gross) Growth %

· AR Turnover (which is just the denominator in the Days to Collect AR metric) = Sales Revenue / Accounts Receivable

· Inventory Turnover (which is just the denominator in the Days to Move Inventory metric) = COGS / Inventory

· Accounts Payable Turnover (which is how fast they pay for their Inventory) = COGS/Accounts Payable

· Depreciation Expense as a % of Gross PP&E = Depreciation Expense / Gross PP&E

· Go into the footnotes of your company’s financial statements and find the following:

· Effective interest rate on Long-Term Debt

· Plans to pay down Long Term Debt

· Effective tax rate (as a % of Pretax Income)

· Make Assumptions for the following Value Drivers on the “Assumptions” page – have a reason for each based on your calculations and things you know about your company:

· Sales Growth %

· COGS as a % of Sales Revenue

· SG&A as a % of Sales Revenue

· Interest Rate (as a % of Long Term Debt)

· Tax Rate (as a % of Pretax Income)

· PP&E (Gross) Growth

· Pay Down of Long Term Debt (in $$)

· Make Assumptions for each of the following (these are not value drivers, but you need them to make your financial statements complete):

· Depreciation Expense as a % of Gross PP&E

· AR Turnover

· Inventory Turnover

· AP Turnover

· Forecast next year by making formulas that link your Assumptions page to your Forecasted Income Statement and Balance Sheet

2 - Write up what you did (AND WHY) in a (I would think lengthy) memo that accompanies your Excel workbook. You want to convince me that you a) know a lot about your company and its strategy and b) incorporated that knowledge into your forecasts.

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