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Nike 10-K
The author of this report has been asked to review and assess the recent 10-K filing that Nike put forth to their investors, the SEC and the public at large as part of their burden as a public company. The items and factors that will be assessed when it comes to the Nike and their 10-K will include the format of their balance sheet, whether the author of this report agrees with the presenting of the figure son the 10-K being at fair value, whether Nike has any intangible assets, what is included in the Long-Term Liability balance, the biggest source of cash that Nike realized in their Statement of Cash Flows and the biggest use of cash that is manifested in the same. While many deem Nike to be in strong financial shape, a drilldown in their 10-K reveals some interesting items.
Analysis
For the purposes of this brief report, the 10-K that was used for analysis was the 10-K filing as sent as of 5/31/2015 and is displayed on the Securities and Exchange Commission website. Specifically, the filing is for what Nike does under the filing moniker "NKE" and is pursuant to the filing requirements that are required by the Securities Exchange Act of 1934. As far as the format that is used, the 10-K...
It is noted later in the balance sheet that there are some "arrangements" and such that are not included in the balance sheet. Nike states that they do this because of certain contracts and agreements as part of their "enforceability of intellectual property rights, coverage for legal issues" and a few other items mentioned. Finally, it is stated that they use what is known as a "Consolidated Balance Sheet." This is specifically mentioned as a foot note in the "Contractual Obligations" section referenced to above (SEC, 2016).
As for whether the use of fair value is something that can be supported or agreed with, it all comes down to estimates and valuations that are based on something that could occur, rather than something that did occur. So long as the valuations are indeed good faith and truly represent what could happen in the open market, the author of this report cannot really…
References
SEC. (2016). NKE - 5.31.2015-10K. Sec.gov. Retrieved 23 October 2016, from https://www.sec.gov/Archives/edgar/data/320187/000032018715000113/nke-5312015x10k.htm
balance sheet would be recognized at historical cost? The balance sheet presents a list of the firms' long- and short-term assets and liabilities. The historical cost convention sees assets measured at their historical price; the price that was paid for them when they were purchased, rather than estimating the current value. Where historical cost is used, the assets are assessed based on their historical value, and then deprecated over their
Assets at Nike Current assets are an important element of the balance sheet. However, to understand what assets are available it is necessary examine how the assets classes are assessed and qualified. For example, receivables are an asset, as this is money which is earned and owed to the firm, but not yet received. Looking at the Nike 10-k, the accounts receivable is adjusted to allow for bad debts (Nike,
Nike Financial Analysis Nike earned a net income of 2.133 billion in fiscal 2011 on revenues of $20.862 billion. A trend analysis of the income statement shows that net income grew 9.7% in FY 2011, whereas the net income grew by 11.8%. In the previous year (FY2010), Nike's revenue actually declined by 0.8%, while the net income increased by 28.2%. The performance over the past two years indicates that Nike has faced
This strategy of customization increases sales and profits per pair of shoes produced. Successful Acquisitions and Partnerships Nike acquired Official Starter Properties and Official Starter in later 2004. These two entities were the sole owners and licensors of the Starter, Team Starter and Asphalt brand names as well as master licensee of the Shaq and Dunkman brands (a line of athletic apparel, footwear and accessory products for the value retail channel).
Nike: Financial Analysis The relevance of analyzing the financial stability and health of an entity cannot be overstated especially when it comes to the determination of the future performance of the concerned entity. This text undertakes an in-depth financial analysis of Nike, a well-known footwear, equipment, and apparel designer. In seeking to conduct an in-depth analysis of Nike, I will amongst other things describe the company and its operations in significant detail,
5% of total liabilities. Their retained earnings, on the other hand, total $5.073 billion. The heavy use of retained earnings is partially explained by their view of themselves as a growth company. While they pay a dividend, Nike prefers to re-invest much of its profits back into expansion. They do not feel that the market has matured sufficiently to stop their aggressive growth strategy. Another consideration in their capital structure