1153 words - 5 pages

Measure | NKE | ADDYY |
Return on Equity (ROE) | 24.75% | 14.67% |
Operating Margin | 13.55% | 8.09% |
Total Debt to Equity | 11.92 | 24.58 |
Current Ratio | 3.39 | 1.45 |
Trailing P/E Ratio | 25.27 | 21.55 |
VRE = ROE ÷ Trailing P/E Ratio | .009794 | .006807 |
Trailing Dividend Yield (%) | 1.20% | 1.60% |
PEG Ratio | 2.03 | -3.97 |
  | NKE | S&P 500 |
Jensen's Alpha | 1.18 |   |
Sharpe Ratio | 0.27 | 0.47 |
Treynor Ratio | 4.15 | 1.35 |
Stock Chart for the last 3 months
Stock Chart for the last 3 months
Performance Evaluation (Feb, 2012 -Jan, 2014)
Performance Evaluation (Feb, 2012 -Jan, 2014)
Key Statistics (Vs Major Competitor)
Key ...view middle of the document...

15 against S&P 500’s 1.35. The means that Nike has been able to earn a 4.15% risk premium for each systematic risk acquired.
News and Other Factors
On April 7th, 2014, Nike got a much needed boost on its stock shares from analysts. These analysts rated Nike shares from “hold” to “buy” which will help Nike shares this April since its stock value fell 7%. The reason Nike shares were at one of its lowest was due to a growing company named Under Armour. In fact, analysts predicted a bullish forecast for Under Armour for the year of 2014. Due to this, Nike which holds over 50% of the American shoe market is now suffering at the hands of these predictions. Numerous analysts have even declared that Nike is losing its touch with the youth. This can be seen in the younger generation being attracted to the Under Armour brand. Consequentially when Under Armour announced on March 28, 2014 that it would split its shares, Nike shares dropped value from around $80/share to $70/share around the first week of April.
Financial Ratios
Comparing Nike to its longtime competitor, Adidas, in regards to financial ratios is interesting. In assessing both companies’ current ratios, Nike has a higher ratio of 3.39. This means that Nike over Adidas is much more capable in meeting its short-term obligations with cash. On the other hand, Adidas’ PEG ratio makes the company look like an attractive investment opportunity. After all, the rule of thumb for PEG ratios is that if the company’s stock is less than 0.33, then it represents an extraordinary attractive investment opportunity. Thus Adidas’ PEG ratio of -3.97 over Nike’s 2.03 triumphs in attractiveness. Although, investors should not forget that Nike’s 2.03 PEG ratio makes the company fully valued. Another financial ratio to look into is both company’s total debt to equity ratio. Since Adidas has a higher ratio of 24.58, this illustrates that Adidas has been much more aggressive than Nike in financing its own growth with debt. Consequently, Adidas will have much more volatile earnings as a result of it. Granting, this will put Adidas in a position where it can earn more earnings which can benefit shareholders, but only if the earnings increases more than the interest acquired. This puts Nike when compared to Adidas in a position where the Nike company likes to play it safe in financing....

Other assignments on Essay

Essay Style

444 words - 2 pages Welcome to Writing Essays, the RLF’s online guide to everything you wanted to know but were afraid to ask about writing undergraduate essays. The guide is a toolbox of essay writing skills and resources that you can choose from to suit your particular needs. It combines descriptive and practical elements. That is, it tells you what things mean and what they are; and it uses examples to show you how they work. Writing Essays takes you

Critique Essay

1058 words - 5 pages The ineffectiveness of online writing courses DeJaneria W. Knight University of Maryland University Writing professor Kate Kiefer offers her debatable opinion on the usefulness of online learning in writing courses in the essay “Do Students Loose More Than They Gain in Online Writing Classes”. Her expertise are derived from views on all sides of the spectrums by teaching in hybrid settings, strictly online settings, and class room or face

Comperative Essay

792 words - 4 pages Jon Gjebrea WRIT 1010 / 50 April 25, 2012 Dr. Lydia Wazir Comperative essay Compare two countries In this essay I am going to concentrate on clear contrasts between Albania and Italy- one of the countries from central Europe. These countries have different population, food, area. However, one may find their natural environment similar- in both countries there are politics, seas, and other components. When you think about the two

Ethics Essay

919 words - 4 pages Ethics Essay Sharon Batts ETH/316 February 10, 2014 Professor Heller Ethics Essay Ethical growth is an important instrument needed in today’s society. Virtue, deontological, and utilitarianism theories have similarities and differences. Each theory relates to morals and ethics in precise ways, just as virtue, values, and morality have a precise relationship with one another. Virtue theory relates to ethics by identifying the character

Ethics Essay

716 words - 3 pages ETH/ 316 Ethics Essay Cha Xiong March 12, 2013 Ethics Essay Ethics played a very important role in our lives. While we were growing up, we have been taught on what is right and what is wrong. People from different parts of the world practice different cultures, religions, beliefs, and ethics. Everyone believes that his or her ethical practice is the only one that existed and others should follow. Most of the people still do not

Rogerian Essay

1699 words - 7 pages ENG 102 Cover Letter for Rogerian Essay March 25, 2013 DR. Hennessey, The purpose of this essay is to make my readers aware of the harm cigarettes can do to a person’s body. I also want to make my reader aware that without second hand smoke a person body can be healthier. Smokers should take inconsideration that not everyone wants to smell the smoke or suffer the consequences from second-hand smoke. What I have learned that

Sat Essay

1538 words - 7 pages Common SAT Essay Themes and Archetypes The makers of the SAT use several themes from which they draw essay questions. By knowing these themes ahead of time, you can prepare several preplanned examples to use for each theme. For example, take Thomas Edison. He used over 6000 filaments before finding one that worked in the electric light bulb. You could use this example for essays on adversity, success, history, and progress. The following is a

Reflective Essay

515 words - 3 pages could say that I have learned to read with a pen, which has drastically taken my writing to a new level because I am able to connect back with my initial insights marked on the page. Writing had always been one of my strengths, but it was challenging to take that initial step past the high school, five-paragraph essay form that constricted my ideas for so long. Moving past this form, however, has greatly opened my mind. My thoughts are now able

Assesment Essay

596 words - 3 pages Assessment Essay William Raspberry is from a small segregated town in Mississippi, he left this small town to take a job as a reporter. I do believe that his home town plays a big factor in how he feels about the black Americans being referred to as “black”. He has some really great points of view on the subject and how it affects the black children. There are certain images that come to mind when a person refers to a person as black. As I

Retorical Essay

1322 words - 6 pages an impact on her beliefs and the combination of the inequality gender issues that defined her life as a child. With the perspective of Stanton’s past, her writing is illustrated by the reader as representative. Personal anecdotes, contrast, and comparison, are techniques used by Stanton. Stanton enhances her ability to persuade the reader with a strong influential essay by using logic, emotion, and ethics. Stanton argues that all women

Hero Essay

720 words - 3 pages Level C Essay You may often ask yourself, “What is a hero?” No need to worry, I’ll explain it to you. A hero in today’s generation is not what we normally think when the word “hero” comes to mind. We usually think of Spiderman, Batman, Superman, and all the other comic book hero’s. When we are little we are made to think that hero’s fly, have super strength, and other amazing powers. We were thought wrong. Real hero’s, don’t have any of

Similar Documents


300 words - 2 pages essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay essay


310 words - 2 pages Holy Family Cristo Rey Catholic High School Application Essay This program offers numerous benefits for college bound high school students. Such students have never experienced life on a college campus, nor have they been responsible for waking up on time and being prompt for classes. Neither have they experiences lecture setting in which more than a hundred students are listening to a single professor simultaneously. In their


748 words - 3 pages Assessment 1 The constant improvement of technology has changed people's lives greatly. This essay concentrates on the digital revolution and the digital divide in the world today. Many today's technology achievements and improvements of people's quality of life should owe to the digital revolution. Digital revolution, which is also named the third industrial revolution or the third technological revolution, means the innovation of computers

Essay Writing

2124 words - 9 pages CMM 801: Journalism and Communication Theory Academic Essay Writing An essay is best approached as an intellectual argument that develops from the ideas, issues, theories, concepts, methodologies, etc., you have been taught within the module for which it is the final assessment. It is most important therefore – even as you begin and then progress through the module – that you are clear about the fundamental perspectives, values and