Analysis of Nike’s Performance Based on Its Financial Accounts and Ratios

Research Article
Open access

Analysis of Nike’s Performance Based on Its Financial Accounts and Ratios

Minglun Zhang 1*
  • 1 Dulwich College Beijing, Beijing, China, 101100    
  • *corresponding author Daniel.zhang23@stu.dulwich.org
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/3/2022844
AEMPS Vol.3
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-15-7
ISBN (Online): 978-1-915371-16-4

Abstract

The COVID-19 epidemic has severely impacted all business activity in 2019-2021, especially the sportswear industry with governments’ lockdown and quarantine policies. Therefore, through this paper, the pandemic’s impact on Nike’s financial performance is explored, and to what extent it has recovered. This paper mainly analyzes the sportswear conglomerate Nike, focusing on presenting its financial performance through ratio analysis between the years 2019, 2020, and 2021, as well as comparing it to major rival competitors in the industry to evaluate its overall performance. Data for this investigation are obtained through the companies’ respective official income statements and balance sheets, from which profitability, efficiency turnover, and liquidity ratios are derived to both vertically and horizontally compare Nike’s financial performance for an accurate evaluation. Through this paper, it is uncovered that Nike has healthily recovered from the losses introduced by the pandemic, and maintains its highly competitive position compared to its rivals, Adidas, and Puma.

Keywords:

Performance, Analysis., Nike, Profitability, Ratio

Zhang,M. (2023). Analysis of Nike’s Performance Based on Its Financial Accounts and Ratios. Advances in Economics, Management and Political Sciences,3,616-624.
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References

[1]. Hayes, Adam. “The Importance of Profitability Ratios.” Investopedia, Investopedia, 27 Mar. 2022, https://www.investopedia.com/terms/p/profitabilityratios.asp.

[2]. Meng, Sihan, et al. “Analysis of Enterprise Operation under the Impact of Covid-19 Epidemic: A Case Study of Nike Inc..” Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021), vol. 190, 2021, pp. 137–145., doi:10.2991/aebmr.k.210917.024.

[3]. “Nike, Inc. Annual Report on Form 10-K.” NKE-20210531, 31 May 2021, https://www.sec.gov/Archives/edgar/data/0000320187/000032018721000028/nke-20210531.htm.

[4]. Journal, Wall Street. “Addyy | Adidas AG ADR Annual Income Statement - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/ADDYY/financials/annual/income-statement.

[5]. Journal, Wall Street. “Addyy | Adidas AG ADR Annual Balance Sheet - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/ADDYY/financials/annual/balance-sheet.

[6]. Journal, Wall Street. “PMMAF | Puma SE Annual Income Statement - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/PMMAF/financials/annual/income-statement.

[7]. Journal, Wall Street. “PMMAF | Puma SE Annual Balance Sheet - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/PMMAF/financials/annual/balance-sheet.

[8]. Kenton, Will. “Efficiency Ratio.” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/terms/e/efficiencyratio.asp.

[9]. Adidas AD ADR - Stock Operating Performance ADDYY.” Morningstar, https://www.morningstar.com/stocks/pinx/addyy/performance.

[10]. Puma SE - Stock Operating Performance PUM.” Morningstar, https://www.morningstar.com/stocks/xwbo/pum/performance.

[11]. Hayes, Adam. “What Are Liquidity Ratios?” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/terms/l/liquidityratios.asp.

Cite this article

Zhang,M. (2023). Analysis of Nike’s Performance Based on Its Financial Accounts and Ratios. Advances in Economics, Management and Political Sciences,3,616-624.

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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

ISBN：978-1-915371-15-7(Print) / 978-1-915371-16-4(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.3
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Hayes, Adam. “The Importance of Profitability Ratios.” Investopedia, Investopedia, 27 Mar. 2022, https://www.investopedia.com/terms/p/profitabilityratios.asp.

[2]. Meng, Sihan, et al. “Analysis of Enterprise Operation under the Impact of Covid-19 Epidemic: A Case Study of Nike Inc..” Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021), vol. 190, 2021, pp. 137–145., doi:10.2991/aebmr.k.210917.024.

[3]. “Nike, Inc. Annual Report on Form 10-K.” NKE-20210531, 31 May 2021, https://www.sec.gov/Archives/edgar/data/0000320187/000032018721000028/nke-20210531.htm.

[4]. Journal, Wall Street. “Addyy | Adidas AG ADR Annual Income Statement - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/ADDYY/financials/annual/income-statement.

[5]. Journal, Wall Street. “Addyy | Adidas AG ADR Annual Balance Sheet - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/ADDYY/financials/annual/balance-sheet.

[6]. Journal, Wall Street. “PMMAF | Puma SE Annual Income Statement - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/PMMAF/financials/annual/income-statement.

[7]. Journal, Wall Street. “PMMAF | Puma SE Annual Balance Sheet - WSJ.” The Wall Street Journal, Dow Jones & Company, https://www.wsj.com/market-data/quotes/PMMAF/financials/annual/balance-sheet.

[8]. Kenton, Will. “Efficiency Ratio.” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/terms/e/efficiencyratio.asp.

[9]. Adidas AD ADR - Stock Operating Performance ADDYY.” Morningstar, https://www.morningstar.com/stocks/pinx/addyy/performance.

[10]. Puma SE - Stock Operating Performance PUM.” Morningstar, https://www.morningstar.com/stocks/xwbo/pum/performance.

[11]. Hayes, Adam. “What Are Liquidity Ratios?” Investopedia, Investopedia, 8 Feb. 2022, https://www.investopedia.com/terms/l/liquidityratios.asp.

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