Basic information about Nike Inc.
The income statement (statement of earnings) reports on the performance of Nike Inc., the result of its operating activities.
Comprehensive income is the change in equity (net assets) of Nike Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
The assets reports major classes and amounts of resources owned or controlled by Nike Inc..
The liabilities and stockholders' equity reports major classes and amounts of external claims on assets and owners' capital contributions, and other internally generated sources of capital.
The cash flow statement provides information about Nike Inc.'s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Nike Inc.'s statement of financial position.
Common-Size Financial Statements
Income statement components (revenuess and expenses) shown as percentage of total sales.
Assets components shown as percentage of total assets.
Liabilities and stockholders' equity components shown as percentage of total liabilities and stockholders' equity.
Evaluates revenues and output generated by the Nike Inc.'s assets. Operating performance ratios describe the relationship between the Nike Inc.'s level of operations and the assets needed to sustain operating activities.
Measures how efficiently Nike Inc. generates revenues from its investments in fixed or total assets.
Measures the adequacy of a Nike Inc.'s cash resources to meet its near-term cash obligations.
Examines Nike Inc.'s capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.
Measures the income of Nike Inc. relative to its revenuess and invested capital.
Relative valuation technique determine the value of Nike Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock's value, such as earnings, book value, and sales.
Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.
To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.
Free cash flow to the firm is the cash flow available to the Nike Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.
Free cash flow to equity is the cash flow available to Nike Inc.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.
Discounted Cash Flow (DCF) Valuation
CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets' systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.
The Dividend Discount Model (DDM) is a technique for estimating the value of a share of Nike Inc.'s common stock issue as the present value of all future dividends.
The FCFF valuation approach estimates the value of the firm as the present value of future FCFF discounted at the weighted average cost of capital (WACC).
- Goodwill and Intangible Assets Accounting Policy
- Goodwill and Intangible Assets Disclosure
- Analyst Adjustments: Removal of Goodwill
- Adjusted Ratios: Removal of Goodwill (Summary)
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return On Equity (ROE)
- Adjusted Return On Assets (ROA)
Financial Reporting Quality
Financial reporting quality relates to the accuracy with which Nike Inc.'s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Nike Inc.'s earnings.