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Annual Report

Dawn Jackson

Annual Report

University of Phoenix

April 4, 2015

Annual Report of Nike Inc.

Nike’s Balance sheet and income statement from:

http://www.marketwatch.com/investing/stock/nke/financials/balance-sheet

What are the company’s total assets at the end of its most recent annual reporting period? Why is this important?

Nike's total assets are 18.93Billion dollars

What are the total assets at the end of the previous annual reporting period?

Nike Inc. total assets at the end of previous annual reporting are 17.94Billion dollars

How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?

2,220 million dollars

What amount of accounts payable did the company have at the end of its most recent annual reporting period?

525Million dollars

What amount of accounts payable did the company have at the end of the previous annual reporting period?

41Million dollars

What are the company’s net revenues for the last three annual reporting periods?

2.693+2.472+2.211=7.376 million dollars

What is the change in dollars in the company's net income for its most recent annual reporting period to the previous annual reporting period?

2.69B-2.46B=0.23 Billion dollars

0.23 Billion Dollars

What are the company’s total current assets at the end of its most recent annual reporting period?

Total current assets are 13.7Billion dollars

What are the total current assets at the end of the previous annual reporting period?

Total current assets at the end of the last annual reporting period are 13.63Billion dollars

What in the information above would be essential to a potential investor, employee, and so on?

To investors, cash from all sources, not just accounting income from operations, is what pays back their investments. The importance of the cash flow statement is that it shows the exchange of money between a company and the outside world during a period; so investors can know if the company has enough cash to pay for expenses and asset purchases. Therefore, the cash income of Nike Inc. is very important to investors.

Operating results during the annual period also concerns investors. The financial statement of the income statement reports operating results such as sales, expenses, and profits or losses. Using the income statement, investors can both evaluate Nike’s past income performance and assess the uncertainty of future cash flows.

The statement of shareholders' equity is primarily important to equity investors because it shows the changes in various capital components, including retained earnings, during a period. The amount of shareholders' equity is a company's total assets minus its total liabilities, representing the company's net worth. A steady growth in a company's shareholders' equity by way of increasing retained earnings, as opposed to expanding shareholder base, means the accumulation of investment returns for current equity shareholders. Any investor will consider the statement of shareholders' equity before putting his/her money in an individual company for this case Nike Inc.

From the annual report, Nike Inc. ended the year 2014 at $96.15, for a gain of 23.8%, including its dividend adjustments. This gain is very important to a potential investor. She/he will be able to project the company’s position in the next two or three years. The percentage gain gives an indication of the company’s status.

Nike Inc. traded in a range of $69.85 to $99.76 in 2014 in terms of shares. Nike consensus analyst price target of $102.00 would imply an upside of 6.1% in the year 2015. Therefore, there is a dividend yield of 1.1%.The 1.1% dividend yield is a concern to many investors. The dividend yield is an imperative factor to note before investing.

The ratios provide indicators of how well the company and its business units are performing. Therefore, any investor will put consideration into the ratios before investment.

The net revenues tell investors and managers how well the company is doing in sales or services and bringing in money. For the last three years, Nike Inc. has registered a net revenue of 7.376 million dollars. From this, the investor can determine how well the company is doing in terms of bringing in money and therefore he/she will come up with right decisions on whether to invest or not.

Accounts payable is also an investment factor to consider. Investors study the accounts payable of a given company before placing their money for investment. Nike Inc. accounts payable was 41 Million dollars