Financial Analysis Comparison of Nike & UA
Financial Analysis Comparison of Nike & Under Armour Case Analysis (p. 55 of your text)
First, calculate the below ratios for Nike, Inc. for the years 2013 & 2014. Nike balance sheet and income statement are shown on pp. 54-55 of your text. For financial ratios that employ stock data, use Nike's Class B common stock and price per share of $76.91.
Next, calculate the same ratios for Under Armour for years 2013 & 2014 (many of these are already calculated throughout chapter 2 of your text as they are used as examples).
Then, answer the 4 case analysis question:
1) In what ratio areas is Nike stronger than UA?
2) In what ratio areas is UA stronger than Nike?
3) If you were an investor considering purchasing stock in either Nike or UA, which company would you choose? Explain and support your answer.
4) If you were a bank manager or other investor considering a request to loan money to either Nike or UA, to which company would you choose to provide a loan? Explain and support your answer.
Ratios to calculate:
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Current Ratio
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Quick Ratio
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Net Working Capital
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Cash as a % of TCA
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Total Asset Turnover
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Inventory Turnover
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Inventory as a % of TCA
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Average Collection Period
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Debt Ratio
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Interest Coverage Ratio
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Net Profit Margin
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Return on Equity
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Gross Profit Margin
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ROI
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Market Value
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Price-to-Earnings Ratio
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Attachment:- Income Statment.rar