nancial performance of Nike as "impressive" (Ferguson, 1996a, p. 1671). In fiscal 1995, the company boosted its market share by 20 percent on a 30 percent increase in net sales. Value Line concluded that Nike is well-positioned to maintain the momentum developed in the first-half of the decade of the 1990s (Ferguson, 1996a, p. 1671). Through the second fiscal quarter in fiscal 1996, Nike sales were up 72.5 percent (Feitelberg, 1996, p. 3), while profits were up 39 percent in fiscal 1996 (McAllister, 1995, pp. 2-3).
Financial ratios were calculated for Nike for fiscal year 1995. These ratios, together with those for the shoe industry of which Nike is a part, are presented in Table 1, which may be found below on this page.
Selected Financial Ratios: Nike and Shoe Industry 1995
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Ratio Nike Shoe Industry Comp: Pos/Neg
Current 3.1:1 2.4:1 Positive
Debt (Total debt/ 37.5% 44.5% Positive
Asset turn 1.51X 1.52X Negative
Net Profit on Sales 8.4% 6.1% Positive
Earnings per Share $2.77 $1.81 Positive
Return on Assets 12.7% 8.2% Positive
Return of Equity 20.3% 16.4% Positive
Price/Earnings 12.2:1 13.8:1 Negative
Dividend Payout 16.4% 11.5% Positive
Sales Growth Rate 25.5% 4.4% Positive
[Calculated from data obtained from: Ferguson, 1996a; Ferguson, 1996c; Nike, 1995]
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As the ratios presented in Table 1 illustrate, Nike overall outperforms the shoe industry of which the company is a part. The company's financial ratios are strong in their own right, as well as in comparison with the sh...