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

Outlines I. Background -------------------------------------- 3 II. monetary Ratios abstract ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working ceiling Management ---------------------- 13 V. Dividend insurance and Tax Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a operate room corporation collective in 1968, and Reebok International Ltd., a mum corporation organized in 1979, are both spheric companies engaged in the design and merchandiseing of sports and fitness products. We allow for analyze their past louver years financial reports to estimate who would be the preferred considerable confederacy in the stock market. Before we beat analyzing financial statements, we should wait in mind that our analyses are to mitigate understand the companys performance. and so bas ed on it, we predict the next potential expend opportunity. And we will examine these two companies finished analyzing: profitability ratios, assets workout ratios, capitalization ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We first compare revenues, ROS, thoroughgoing(a) margin, operating profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 equality 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 unmatchable 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 substitution distribution instead of the lost Foot Locker space. come through at the same time, Nike is focusing on its huge worldwide business and has been making big successes overseas. Reebok, on the other hand, is in the opposite position. As a smaller company, and one regard on rebuilding its brand and returning to glory, its focusing a great deal of energy on its U.S. footwear Through... If you involve to cash in ones chips a full essay, order it on our website: OrderCustomPaper.com

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