Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

The Analysis of Under Armour, Adidas, and Nike

No description
by

Evan Davis

on 2 December 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of The Analysis of Under Armour, Adidas, and Nike

Financial Statement Analysis of Nike and Two Competitors:
Adidas and Under Armour

Presented by Evan Davis, Adolfo Diaz,
Kim Chet, and Edosa Obaseki
Objective Statement
To accurately analyze the financial position of Nike, Adidas, and Under Armour and give a comparison of their current state.
Introduction to the Companies
Total Revenue 2013
Nike: $ 25, 313 million

Adidas: $ 19, 854 million

Under Armour: $ 2, 232 million
Total Cost of Sales 2012-2013
Nike: $ 14, 279 million

Adidas: $ 10, 072 million

Under Armour: $ 1, 195 million
BALANCE SHEET ANALYSIS
Nike,
Adidas,
and Under Armour
NIKE BALANCE SHEET ANALYSIS
2011 to 2013 Overview
Increase in total assets
Increase in total liabilities
Increase in shareholders' equity
Nike Significant Accounts
Cash and cash equivalent
; 1
8.5% in 2012, and 44% in 2013
Account receivables
;
4.5% in 2012, and -0.5% in 2013
Inventories
;
23.4% in 2012, and 6.5% in 2013
Property, Plants and Equipment
;
7.75% in 2012, and 11% in 2013
Goodwill
;
-2% in 2012, and -34.8% 2013
Possible Factors
2012 Summer Olympic Games
Cole Hann
Umbro businesses
ADIDAS BALANCE SHEET ANALYSIS
2011 to 2013 Overview
Increase in total assets and total liabilities in 2012
Decrease in total assets and total liabilities in 2013
Income Statement Analysis
Interest Expense
Nike had a decrease in 2012 but had an increase in 2013 by 200%
Adidas's financial income growth
Under Armour had an increased in 2012 but 2013 was decreased

Net Income
Nike-
Adidas-
Under Armour-
Founded by Bill Bowerman and Phil Knight in 1964
Beaverton, Oregon
Leader of the industry since 1989
Most valuable in sports business
Market cap of $71.5 billion
48,000 employees
Reaches many regions such as United States, Canada, Asia, Latin America, and Europe
Nike
Founded by Adolf “Adi” Dassler in Germany in 1949
Second largest sporting good manufacturer in the world
Reebok, TaylorMade, Rockport
Market cap of $26.21 billion
50,000 employees
Europe, North America, China, Latin America

Adidas
Founded by Kevin Plank in 1996
Washington D.C.
Market cap of $15.5 billion
Supplies glove and footwear to NFL, footwear supplier of MLB, and owner of MapMyFitness
7,800 employees
Mainly sells to North America, with a few locations in Europe and China

Under Armour
Areas of Comparison
Balance Sheets
Income Statements
Cash Flow Statements
Ratios of the Financial Statements
Financial Ratios!
Liquidity Ratio
2013 2012 2011
Nike 3.47 2.98 2.85

Adidas 1.45 1.57 1.46

Under Armour 2.64 3.58 3.75

Net Trade Cycle
Nike 90.65 98.40 96.99

Adidas 86.17 74.05 75.80

Under Armour 125.54 101.98 140.76

2013 2012 2011
Total Asset Turnover
2013 2012 2011
Nike 1.44 1.50 1.34

Adidas 1.24 1.28 1.19

Under Armour 1.47 1.58 1.60

Debt Ratio
2013 2012 2011
Nike 36.56% 32.87% 34.37%

Adidas 52.75% 54.59% 54.37%

Under Armour 9.69% 5.35% 8.46%

Debt to Equity
2013 2012 2011
Nike 57.62% 48.97% 52.37%

Adidas 111.4% 119.9% 118.9%

Under Armour 14.52% 7.58% 12.21%

Net Profit Margin
2013 2012 2011
Nike 9.81% 9.52% 10.6%

Adidas 5.45% 3.52% 4.56%

Under Armour 6.96% 7.02% 6.58%

Return on Equity
2013 2012 2011
Nike 22.28% 21.41% 21.67%

Adidas 14.39% 9.88% 11.84%

Under Armour 15.41% 15.76% 15.23%

Overall Financial Position
NIKE
Under Armour
Adidas
Investment
Nike- Low Risk & Medium Profitability

Adidas- Low Risk & Low(er) Profitability

Under Armour- Low Risk & High(er) Profitability

Thank You!
Cash Flow Statements
Nike's Operating Activities: $1812 - $1899 - $3027 million

Adidas's Operating Activities: $807 - $942 - $634 million

Under Armour's Operating Activities: $15.21-$199.7-$120.0 million

Operating Activities
Nike's Investing Activities: $514 - $(1,021) - $(1,067) million

Adidas's Investing Activities: $(566) - $217 - $(243) million

Under Armour's Investing Activities: $(89.4)-$(46.9)-$(238.1) million
Investing Activities
Nike's Financing Activities: $(1,972) - $(2,118) - $(1,040) million

Adidas's Financing Activities: $(500) - $42 - $(439) million

Under Armour's Financing Activities: $45.8 - $12.3 - $126.8 million
Financing Activities
Adidas Significant Accounts
Cash and cash equivalent
;
4% in 201, 14.7% in 2013.
Receivables; 11.8% in 2012
,
-2.4% in 2013
Property, Plants and Equipment
;
173% in 2012, -29.77% in 2013

Possible Factors
Retained Earnings is the largest amongst all accounts
Growing foreign markets
Immobilieninvest
Betriebsgesellschaft
Under Armour Balance sheet Analysis
2011 to 2013 Overview
Increase in total assets
Increase in total liabilities
Increase in shareholders' equity
Under Armour Significant Accounts
Cash and cash equivalent; 94% in 2012, 1.65% in 2013
Accounts receivables; 31% in 2012, 19.61% in 2013
Total Inventory; -1.58% in 2012, 46.89% in 2013
Property, Plant and Equipment; 13.65% in 2012, and 23.83% in 2013
Intangibles; -19.1% in 2012, 437% in 2013
Accounts payable; 42% in 2012, 15% in 2013
Accrued expenses; 22% in 2012, 57% in 2013
Other liabilities; 24% in 2012, and 41% in 2013
Possible Factors
Greater percent of their liability is current as opposed to long term
Growth phase
Acquisition of new headquarters
Acquisition of MapMyFitness
Increased retained earnings
Full transcript