Nike's Investment Value and Development Trend

Abstract

With the improvement of people's living standards and the popularity of sports, more and more people associate healthy life with sports, which significantly increases the consumption of sports goods. The United States is the production of sports goods market leader. Nike is a very representative sports goods company, with 110 years of production history. After decades of development, Nike has occupied nearly half of the market share in the high-end sports market in more than 120 countries. This paper selects American Nike company as the research object to analyze its industry environment and competitive strategy. Then, we'll conduct profitability analysis, efficiency ratio analysis, and solvency analysis on Nike and analyze Nike's investment value and development trend in the past three years based on financial indicators. In the research, it is found that Nike has some problems such as weak solvency, high total operating cost and slow turnover of receivables. This paper proposes a solution to the problems in the report.