October 2008 Archives

Nike Finacial Analysis - published by formerly Indews Financial

The purpose of this paper is to provide investors with comprehensive information on Nike, its financial health and activities, its strength and weaknesses, and whether Nike creates value to its shareholders. This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. We will examine how Nike's international operations are conducted, its criticisms and strengths. Nike's debt ratios, dividend payout ratios, dividend yield, and interest coverage ratios over the previous 5 years will be discussed and compared with industry benchmarks. Its bond ratings and the relation between the operating characteristics and its leverage will also be analyzed.

Managers for Nike are creating value for shareholders by expanding Nike operations in foreign markets as much as possible. Nike's sales and earnings outpaced Wall Street estimates FY 06. Nike's sales reached $15 billion and its earnings per share were up 18%. Over the past 5 years, Nike's earnings per share on compounded rate were up 20%, gross margins averaged 42% and in the past year, Nike delivered 44% margins in a period of rising costs. The current managers are maximizing shareholder's wealth but in the footwear industry, Nike's performance still falls. The footwear industry averaged about 14.25%, while Nike's growth in stock was 10.48%. If the increase in value of shares is a benchmark of performance for managers, Nike's performance is unimpressive. Nike has a Price to Book (MRQ) ratio of 3.97, while the industry Nike competes in has a ratio of 3.96. S&P 500 has a Price to Book (MRQ) ratio of 3.90. Nike has a Price to Tangible Book (MRQ) ratio of 4.26, while the industry has a ratio of 4.44, and the S&P 500 has a ratio of 7.22.

Apple Financial Analysis - Published by formerly Indews Finacial

Apple, Inc. Key Statistics

As of January 18, 2007, Apple's Current Market Rate is about $76.54 billion (from Yahoo Finance). Apple, Inc. beta is 2.41 on Yahoo, while Reuters shows Apple, Inc. beta as 1.47, I am not sure which of the either is accurate or obsolete. Apple, Inc. has 859.27 million shares outstanding, of which insiders hold institutions hold 4.76% and 77.50%. At 4:01 PM EST, Apple's stock traded at $89.07, down 6.19%.

For 52 weeks Ending 2001-09-29, Apple had $5,363 million in revenues, gross profit of $1,235 million, and a NEGATIVE operating income of $344 million. It incurred a loss of $52 million before tax, and Income After Tax was NEGATIVE $37 million. Apple improved its position in the next year, having revenues of $5,742 million, gross profit of $1,603 million, and a positive income of $17 million. Apple's income after tax for the fiscal year was $65 million. For Fiscal Year ending 2003-09-27, Apple increased its Total revenue and expenses. Apple's total revenues stood at $6,207 million, negative total expenses of $6,208 million. Apple's income after tax stood at $68 million, and a net income of $69 million. The next Fiscal Year - 2004-09-27, saw a considerable rise in Total Operating expenses and revenues. Apple, Inc. net income stood at $266 million - a whopping increase of 285.5% over the previous year. Fiscal years ending in 2005 and 2006 both saw a tremendous rise in Apple's revenues. Apple income after tax for 2005 was $1,328 million an astonishing increase in revenues of 399.24%. For fiscal year ending 2006-09-30, Apples income after tax was $1,989 million, an increase of 49.7%. Apple's earning per share for the fiscal year ending 2006-09-30, was $2.27, the previous year: $1.55, and year the before $.36. Apple has consistently been providing value to its shareholders as one can infer after reading the data. From a loss of $37 million in 2001, Apple increased its revenues after taxes to $1,989 million and earnings per share from negative $.04 to a strong $2.27 EPS.