Nike General by stariya

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									Nike General

Nike continued to benefit from its strategy of consistently focus on innovative products
that provide a competitive edge over its rivals. There were innovations in operations
including work force reductions and rationalizing its supply chain. Meaningful cost
saving could perhaps occur of that.

Share Price:




Ratio Analysis:

Strong Balance Sheet and Cash Balance: Nike’s strong balance sheet and growing cash
balance can leverage the existing infrastructure. No concerns about liquidity or potential
portfolio risk, because of the good risk distribution and the decrease of the influence of
the financial crises in the private sector. Also, Nike improved year over year retail sales
and also its gross margin.

ROE
      0.21              0.18              0.25

ROA
   0.1378              0.1157            0.1628


However, the share price was increasing faster than the fundamental increase of the
Balance Sheet and ratios. As an investor, we are concerned about the decline of the Asset
Turnover and are concerned about its efficiency. Probably due to the general more
optimistic attitude towards the future. In the long-term, Nike can be hold and we expect a
more likely stable share for our portfolio. However, focusing on only one company, we
would redistribute our investments by searching for undervalued companies.

Hold, tendency sell

								
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