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

Outlines I. Background -------------------------------------- 3 II. financial Ratios synopsis ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working ceiling Management ---------------------- 13 V. Dividend policy and Tax Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a operate room corporation corporal in 1968, and Reebok International Ltd., a mum corporation organised in 1979, are both spheric companies engaged in the design and merchandiseing of sports and fitness products. We allow for analyze their past flipper years financial reports to estimate who would be the preferred considerable company in the stock market. Before we beat analyzing financial statements, we should notice in mind that our analyses are to mitigate understand the companys performance. consequently b ased on it, we predict the next potential spend opportunity. And we will examine these two companies finished analyzing: profitability ratios, assets employ ratios, capitalization ratios, sustainable growth rate, and market ratios. II Financial ratios analysis A. Profitability analysis We first compare revenues, ROS, crying(a) margin, operating profit/sale, EBIT/sales, and EBITDA/sales for both companies. Exhibit 1-1 parity 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 1 of its biggest domestic footwear distributors, but its transnational business is booming. Obviously, the U.S. gymnastic footwear market is crucial to Nike, and its working to find interchange distribution instead of the lost Foot Locker space. fulfill at the same time, Nike is focusing on its huge world-wide business and has been making big successes overseas. Reebok, on the other hand, is in the opposite position. As a smaller company, and one relish on rebuilding its brand and returning to glory, its focusing a great deal of energy on its U.S. footwear Through... If you exigency to cash in ones chips a full essay, order it on our website: OrderCustomPaper.com

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