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Nike, Inc.
Title: Nike, Inc.
Category: Business & Economy
Details: Words: 1561 | Pages: 6.6 (approximately 235 words/page)
Nike, Inc.
Part of Nike's strategy to revitalize the company was aimed at addressing their revenues which had been fixed for four years and their net income which had fallen to almost 0M. Additionally, Nike had been losing overall market share and the strong dollar had adversely affected revenue. To address those issues, management was planning to; (1) raise revenue by developing increased levels of athletic-shoe products in the mid-priced segment. (2) Push its well performing apparel line, and (3), …showed first 75 words of 1561 total…
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…showed last 75 words of 1561 total…Invested Capital = (Cash + Accounts Receivable + Inventory) - (Accounts Payable + Accruals) + (Property, Plant & Equipment) = ,064.2
EVA = ((Net operating profit/Invested Capital) - WACC) * Invested Capital = 2.1
Given that the ROIC, or the Operating Profit/Invested Capital, is greater than the WACC, we can conclude that the Nike adds value from investments and that with the new strategy shareholder's value will increase due to a raise in the stock price. EVA strengthens my point of adding Nike to Ford's portfolio.
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