You Are Expected To Select A Company And Three Competitors From The Same Industry And Prepare An Analytical Report In Which You Will Critically Evaluate, Analyse, Discuss And Comment On The Key Issues In The Financial Appraisal.

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NIKE Inc

General Company Information

Principal Office

Website

One Bowerman Drive Beaverton, OR 97005-6453 USA

www.nike.com

Phone

Primary NAICS

503 671-6453

424340 : Footwear Merchant Wholesalers

Auditor

Closing Stock Price

PricewaterhouseCoopers LLP

80.45 (as of 01/18/2019)

Number of Employees

Incorporated

73,100 (Approximate Full-Time as of 05/31/2018)

1964

Country

Mergent Dividend Achiever

United States

Exchange and Ticker

Number of Shareholders

NYS : NKE

15 (class A), 22,271 (class B) (as of 07/20/2018)

Primary SIC

Annual Meeting

3021 : Rubber and plastics footwear

In September

Business Summary

NIKE is primarily engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Co. sells its products through Co.-owned retail stores and digital platforms to retail accounts and a mix of independent distributors, licensees and sales representatives in countries around the world. Co. focuses its NIKE Brand product offerings in six primary categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear. Co. also markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, lacrosse, skateboarding, tennis and volleyball.

Company Details

Financial Highlights

Financial Highlights as of 05/31/2018 in USD

Income Statement

(In Thousands)

Total Revenue

36,397,000

EBITDA

5,126,000

Operating Income

4,379,000

Net Income

1,933,000

Revenue per Share

22.41

EPS from Continuing Operations

1.17

EPS - Net Income - Diluted

1.17

Share Outstanding

1,601,000

Weighted Average Shares Outstanding - Basic

1,623,800

Weighted Average Shares Outstanding - Diluted

1,659,100

Earnings per Share - Basic

1.19

Balance Sheet

(In Thousands)

Total Assets

22,536,000

Current Assets

15,134,000

Total Liabilities

12,724,000

Long Term Debt

3,468,000

Stockholders' Equity

9,812,000

Total Assets per Share

14.08

Current Liabilities

6,040,000

Net Assets per Share

6.13

Cash Flow Statement

(In Thousands)

Cash from Operations

4,955,000

Cash from Investing

276,000

Cash from Financing

(4,835,000)

Capital Expenditures

1,028,000

Cash Flow per Share

2.99

Cash & Cash Equivalents, Beginning of Year

3,808,000

Cash & Cash Equivalents, End of Year

4,249,000

Stock Price and Valuation (Data as of 01/18/2019)

Market Cap(mil)

101,268

Share Outstanding(000's)

1,258,773

PE Ratio

61.4122

Dividend Per Share(TTM)

0.82

Earning Per Share(TTM)

1.36

Last Closing Price

80.45

Previous Trading Day Range

79.74 - 80.97

52 Week Range

62.49 - 85.55

7 Day Average Closing Price

77.88

30 Day Average Closing Price

74.54

200 Day Average Closing Price

77.47

Beta

0.82

High Price Last 3 Mos.

80.45

Low Price Last 3 Mos.

67.53

Avg Daily Volume Last 3 Mos.

8,012,083.48

Management Effectiveness

Revenue per Employee

497,907

Net Income per Employee

26,443.00

ROA % (Net)

8.44

ROE % (Net)

17.40

ROI % (Operating)

29.36

Profitability Ratios

Gross Margin

43.84

Operating Margin

12.03

EBITDA Margin %

14.08

Calculated Tax Rate %

55.31

Profit Margin (TTM)

5.31

Valuation Ratios

Price/Earnings (TTM)

60.34

Price/Book (TTM)

11.72

Price/Cash Flow(TTM)

23.53

Asset Management

Total Asset Turnover

1.59

Receivables Turnover

10.15

Inventory Turnover

3.96

Property Plant & Equip Turnover

8.62

Cash & Equivalents Turnover

9.03

Debt Management

Interest Coverage

81.09

Long Term Debt/Equity

0.35

Long Term Debt as % of Invested Capital

25.46

Total Debt/Equity

0.39

Accounts Payable Turnover

16.82

Accrued Expenses Turnover

11.59

Liquidity Indicators

Quick Ratio

1.45

Current Ratio

2.51

Net Current Assets as % of Total Assets

40.35

Free Cash Flow per Share

2.42

Revenue to Assets

1.62

Consensus Estimates

2019Ae

2019Q1e

2019Q2e

Earnings Per Share

2.64

0.62

0.81

Revenue

39,225.41

9,524.35

10,339.00

EBITDA

5,827.36

1,457.00

1,712.00

Long Term Debt

May 31, 2018, $3,474,000,000 (including current portion of $6,000,000) comprised of:

-- 01 -- $498,000,000 unsecured corporate bond payables, bearing interest at a rate of 2.25%, due May 1, 2023.

-- 02 -- $994,000,000 unsecured corporate bond payables, bearing interest at a rate of 2.38%, due Nov. 1, 2026.

-- 03 -- $495,000,000 unsecured corporate bond payables, bearing interest at a rate of 3.63%, due May 1, 2043.

-- 04 -- $982,000,000 unsecured corporate bond payable, bearing interest at a rate of 3.88%, due Nov. 1, 2045.

-- 05 -- $490,000,000 unsecured corporate bond payables, bearing interest at a rate of 3.38%, due Nov. 1, 2046.

-- 06 -- $10,000,000 Japanese Yen notes, bearing interest at a rate of 2.60%, due Nov. 20, 2020.

-- 07 -- $5,000,000 Japanese Yen notes, bearing interest at a rate of 2.00%, due Nov. 20, 2020.

Line of Credit: On Aug. 28, 2015, Co. entered into a committed credit facility agreement with a syndicate of banks which provides for up to $2,000,000,000 of borrowings. The facility matures Aug. 28, 2020, with a one year extension option prior to any anniversary of the closing date, provided that in no event shall it extend beyond Aug. 28, 2022. Based on Co.'s long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing LIBOR plus 0.455%. Under this committed credit facility, Co. must maintain certain financial ratios, among other things, with which Co. was in compliance at May 31, 2018. No amounts were outstanding under either committed credit facility as of May 31, 2018.

As of May 31, 2018, Co. had letters of credit outstanding totaling $165,000,000.

For details see below.

Expanded Long Term Debt

CUSIP

Issuer Name

Issue Description

Ticker

Coupon

653922AA2

NIKE INCORPORATED

MTN

NKE

6.51

653922AB0

NIKE INCORPORATED

MTN

NKE

6.69

654106AA1

NIKE INCORPORATED

NKE

6.375

654106AB9

NIKE INCORPORATED

SR NT

NKE

5.5

653922AC8

NIKE INCORPORATED

MTN

NKE

4.8

653922AD6

NIKE INCORPORATED

MTN

NKE

5.375

653922AE4

NIKE INCORPORATED

MTN

NKE

5.66

653922AF1

NIKE INCORPORATED

MTN

NKE

5.4

653922AG9

NIKE INCORPORATED

MTN

NKE

4.7

653922AH7

NIKE INCORPORATED

MTN

NKE

5.15

CUSIP

Maturity

Active

653922AA2

06/16/2000

653922AB0

06/17/2002

654106AA1

12/01/2003

654106AB9

08/15/2006

653922AC8

07/08/2007

653922AD6

07/08/2009

653922AE4

07/23/2012

653922AF1

08/07/2012

653922AG9

10/01/2013

653922AH7

10/15/2015

Capital Structure

Abbreviation

Description

Structure Type

Exchange

Ticker

CDT Cl A Com

Common

Cl B Com

Common

NYS

NKE

Abbreviation

Market Cap

CDT Cl A Com

Cl B Com

101,268,287,850

Pricing Information

Closing Price

As of 01/21/2019 : 80.45

Dividend Yield

1.0193

Earning Per Share(TTM)

1.36

Dividend Per Share(TTM)

0.82

Market Cap(mil)

101,268

52 Week Range

62.49 - 85.55

PE Ratio

61.4122

% Price Change (100 Days)

5.98

Company Financials

Income Statement

Exchange rate used is that of the Year End reported date

Prelims Annual Income Statement

Report Date

05/31/2012

05/31/2011

05/31/2010

Currency

USD

Audit Status

Not Qualified

Consolidated

Yes

Scale

Millions

Selling, general & administrative expense

7,431

6,693

6,326.4

Revenues

24,128

20,862

19,014

Income (loss) before income taxes

2,983

2,844

2,516.9

Income tax expense (benefit)

Income (loss) before accounting changes

Effect of accounting changes

Net income (loss)

2,223

2,133

1,906.7

Weighted average shares outstanding - basic

1,840

1,902

1,975.6

Weighted average shares outstanding - diluted

1,879.2

1,942.8

1,942

Income (loss) per common share - continuing operations - basic

Income (loss) per common share - accounting change - basic

Net income (loss) per common share - basic

1.208

1.12

0.983

Income (loss) per common share - continuing operations - diluted

Income (loss) per common share - accounting change - diluted

Net income (loss) per common share - diluted

1.183

1.098

0.965

Dividends declared per common share

0.348

0.3

0.265

Cost of Goods Sold

13,657

11,354

10,213.6

Dividends per share

Impairment of intangible assets

Total restructuring expense

Report Date

05/31/2009

05/31/2008

05/31/2007

Currency

USD

Audit Status

Unaudited

Not Qualified

Unaudited

Consolidated

Yes

Scale

Thousands

Selling, general & administrative expense

Revenues

19,176,100

18,627,000

16,325,900

Income (loss) before income taxes

1,956,500

2,502,900

2,199,900

Income tax expense (benefit)

469,800

619,500

708,400

Income (loss) before accounting changes

Effect of accounting changes

Net income (loss)

1,486,700

1,883,400

1,491,500

Weighted average shares outstanding - basic

1,939,600

1,982,400

2,015,200

Weighted average shares outstanding - diluted

1,962,800

2,016,400

2,039,600

Income (loss) per common share - continuing operations - basic

Income (loss) per common share - accounting change - basic

Net income (loss) per common share - basic

0.768

0.95

0.74

Income (loss) per common share - continuing operations - diluted

Income (loss) per common share - accounting change - diluted

Net income (loss) per common share - diluted

0.758

0.935

0.733

Dividends declared per common share

Cost of Goods Sold

10,571,700

10,239,600

9,165,400

Dividends per share

0.245

0.219

0.178

Impairment of intangible assets

401,300

Total restructuring expense

195,000

Report Date

05/31/2006

05/31/2005

05/31/2004

05/31/2003

Currency

USD

Audit Status

Unaudited

Consolidated

Yes

Scale

Thousands

Selling, general & administrative expense

Revenues

14,954,900

13,739,700

12,253,100

10,697,000

Income (loss) before income taxes

2,141,600

1,859,800

Income tax expense (benefit)

749,600

648,200

Income (loss) before accounting changes

945,600

740,100

Effect of accounting changes

266,100

Net income (loss)

1,392,000

1,211,600

945,600

474,000

Weighted average shares outstanding - basic

2,072,000

2,100,800

2,105,600

2,116,000

Weighted average shares outstanding - diluted

2,110,400

2,162,400

2,157,600

2,140,800

Income (loss) per common share - continuing operations - basic

0.35

Income (loss) per common share - accounting change - basic

(0.126)

Net income (loss) per common share - basic

0.671

0.576

0.449

0.224

Income (loss) per common share - continuing operations - diluted

0.346

Income (loss) per common share - accounting change - diluted

(0.125)

Net income (loss) per common share - diluted

0.66

0.56

0.439

0.221

Dividends declared per common share

0.093

Cost of Goods Sold

8,367,900

7,624,300

Dividends per share

0.148

Impairment of intangible assets

Total restructuring expense

Report Date

05/31/2002

05/31/2001

05/31/2000

05/31/1999

Currency

USD

Audit Status

Unaudited

Consolidated

Yes

Scale

Thousands

Selling, general & administrative expense

Revenues

9,893,000

9,488,800

8,995,100

8,776,900

Income (loss) before income taxes

Income tax expense (benefit)

Income (loss) before accounting changes

668,300

Effect of accounting changes

5,000

Net income (loss)

663,300

589,700

579,100

451,400

Weighted average shares outstanding - basic

2,141,600

2,160,000

Weighted average shares outstanding - diluted

2,177,600

2,186,400

2,235,200

2,306,400

Income (loss) per common share - continuing operations - basic

Income (loss) per common share - accounting change - basic

(0.003)

Net income (loss) per common share - basic

0.31

0.273

0.263

0.199

Income (loss) per common share - continuing operations - diluted

Income (loss) per common share - accounting change - diluted

(0.003)

Net income (loss) per common share - diluted

0.305

0.27

0.259

0.196

Dividends declared per common share

Cost of Goods Sold

Dividends per share

Impairment of intangible assets

Total restructuring expense

Balance Sheet

Exchange rate used is that of the Year End reported date

Prelims Annual Balance Sheet

Report Date

05/31/2009

05/31/2008

05/31/2007

Currency

USD

Audit Status

Unaudited

Not Qualified

Unaudited

Consolidated

Yes

Scale

Thousands

Total assets

13,249,600

12,442,700

10,688,300

Total current liabilities

Total shareholders' equity

8,693,100

7,825,300

7,025,400

Report Date

05/31/2006

05/31/2005

05/31/2004

Currency

USD

Audit Status

Unaudited

Consolidated

Yes

Scale

Thousands

Total assets

9,869,600

8,793,600

7,891,600

Total current liabilities

2,009,000

Total shareholders' equity

6,285,200

5,644,200

4,781,700

Cash Flows

Exchange rate used is that of the Year End reported date

There is no Prelims Annual financial information available for this company at present.

Ratios

Exchange rate used is that of the Year End reported date

Profitability Ratios

05/31/2018

05/31/2017

05/31/2016

05/31/2015

ROA % (Net)

8.44

18.99

17.44

16.29

ROE % (Net)

17.4

34.38

30.04

27.82

ROI % (Operating)

29.36

32.4

32.74

32.36

EBITDA Margin %

14.08

16.45

16.34

15.81

Calculated Tax Rate %

55.31

13.22

18.67

22.16

Revenue per Employee

497,907

461,694

456,684

488,834

Profitability Ratios

05/31/2014

ROA % (Net)

14.89

ROE % (Net)

24.5

ROI % (Operating)

28.92

EBITDA Margin %

14.73

Calculated Tax Rate %

24.01

Revenue per Employee

492,018

Liquidity Ratios

05/31/2018

05/31/2017

05/31/2016

05/31/2015

Quick Ratio

1.45

1.8

1.62

1.47

Current Ratio

2.51

2.93

2.8

2.52

Net Current Assets % TA

40.35

45.52

45.18

44.64

Liquidity Ratios

05/31/2014

Quick Ratio

1.71

Current Ratio

2.72

Net Current Assets % TA

46.62

Debt Management

05/31/2018

05/31/2017

05/31/2016

05/31/2015

LT Debt to Equity

0.35

0.28

0.16

0.08

Total Debt to Equity

0.39

0.31

0.17

0.1

Interest Coverage

81.09

83.81

244.32

151.18

Debt Management

05/31/2014

LT Debt to Equity

0.11

Total Debt to Equity

0.13

Interest Coverage

108.39

Asset Management

05/31/2018

05/31/2017

05/31/2016

05/31/2015

Total Asset Turnover

1.59

1.54

1.5

1.52

Receivables Turnover

10.15

9.93

9.79

9.01

Inventory Turnover

3.96

3.85

3.79

3.99

Accounts Payable Turnover

16.82

16.21

14.94

15.07

Accrued Expenses Turnover

11.59

11.36

9.24

9.5

Property Plant & Equip Turnover

8.62

9.15

9.89

10.47

Cash & Equivalents Turnover

9.03

9.89

9.24

10.08

Asset Management

05/31/2014

Total Asset Turnover

1.54

Receivables Turnover

8.49

Inventory Turnover

4.16

Accounts Payable Turnover

15.55

Accrued Expenses Turnover

12.42

Property Plant & Equip Turnover

10.52

Cash & Equivalents Turnover

10.01

Per Share

05/31/2018

05/31/2017

05/31/2016

05/31/2015

Cash Flow per Share

3.05

2.2

1.82

2.72

Book Value per Share

6.13

7.55

7.29

7.41

Per Share

05/31/2014

Cash Flow per Share

1.7

Book Value per Share

6.22