BUAD 6900 – Summer 2022
Case #3
(Executive summaries should be between 1-2 pages, single-spaced, 12 pt. font.)
Textbook Case #20 Nike, Inc
Based on the case facts in the textbook (50 points):
1) Identify the key internal factors that are important to Nike. Rank the most important five and explain why. (30 points.)
2) Discuss (in some detail) three areas of strength (10 points)
3) Discuss (in some detail) three areas of weakness (10 points)
Based on your research of the Company’s most recent annual report (internet search; company webpage — investor relations; and latest 10K/10Q reports – www.sec.gov.edgar). (25 points)
4) Using the latest 10K (Annual Report), calculate financial ratio table for the past three years (2021, 2020, 2019). You may need to access the 2020 annual report for the 2019 balance sheet data. Here are the relevant ratios: Current Ratio, Quick Ratio, Total Debt-to-Total Assets Ratio, Total Debt-to-Equity Ratio, Times-Interest-Earned Ratio, Inventory Turnover, Fixed Assets Turnover, Total Assets Turnover, Accounts Receivable Turnover, Average Collection Period, Gross Profit Margin, Operating Profit Margin, ROA, ROE. Note you may need to scroll down in the reports. You are looking for the Consolidated Statements of Income and Consolidated Balance Sheets. (15 points)
5) Based this analysis, identify three major trends and why they are important. (10 points)