Evaluate the financial statements and related disclosures of Nike. You will use the 2021 10-K as your first resource in answering most of the questions; however, some questions require historical data which you will need to obtain from older 10-Ks. You will also need to access the financial statements of some of Nike's competitor firms.

QUESTION: 3. Evaluate the trend in earnings (i.e., net income) over the past five years. To inform your analysis, perform a horizontal analysis of bottom-line earnings (calculating the percentage change in net income) and a vertical analysis (calculating each expense item as a percentage of revenue) for each year. Document this analysis. Discuss key drivers of the changes in net income. Is the volatility in net income greater than or less than the volatility in revenue? Discuss reasons why.

LINKS TO REFER TO

In the search box, enter the company's name or ticker symbol. After selecting the right company, you can locate the latest 10-K filing under the heading "Latest Filings". For example, Nike's 2022 10-K was filed on July 21, 2022. Clicking on the link takes you to the 10-K. https://www.sec.gov/edgar/searchedgar/companysearch.html

You can also find financial statements on the company's investor relations site for Nike, this is here:

https://investors.nike.com/investors/news-events-and-reports/?toggle=reports

Answer rating: 100% (QA)

To evaluate the trend in earnings net income for Nike over the past five years I will perform a horizontal analysis percentage change in net income an... View the full answer