Locate the company’s final accounts for the last 2 financial years and provide commentary and a brief analysis of the company’s financial performance. The Income Statement (Profit and Loss) )

Your analysis of the financial data should also be based on additional sources, such as news articles about the company’s financial performance.

You should identify and comment on:

• Revenue
• Costs
• Gross profit
• Operating and net profit

Have these figures increased or decreased? You should give reasons for increases or decreases.

Comment on whether you think the company is in a strong financial position

 

Transcribed Image Text:

NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED MAY 31, (In millions, except per share data) 2021 2020 2019 39,117 21,643 Revenues $ 44,538 $ 37,403 $ Cost of sales 24,576 21,162 Gross profit Demand creation expense 19,962 16,241 17,474 3,114 3,592 3,753 Operating overhead expense Total selling and administrative expense 9,911 9,534 8,949 13,025 13,126 12,702 Interest expense (income), net 262 89 49 Other (income) expense, net 14 139 (78) 4,801 Income before income taxes 6,661 2,887 Income tax expense 934 348 772 NET INCOME $ 5,727 $ 2,539 $ 4,029 Earnings per common share: Basic 3.64 $ 3.56 $ $ 1.63 $ 2.55 Diluted $ 1.60 $ 2.49 Weighted average common shares outstanding: Basic 1,573.0 1,558.8 1,579.7 Diluted 1,609.4 1,591.6 1,618.4 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. 2021 FORM 10-K 57 NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED MAY 31, (In millions, except per share data) 2021 2020 2019 39,117 21,643 Revenues $ 44,538 $ 37,403 $ Cost of sales 24,576 21,162 Gross profit Demand creation expense 19,962 16,241 17,474 3,114 3,592 3,753 Operating overhead expense Total selling and administrative expense 9,911 9,534 8,949 13,025 13,126 12,702 Interest expense (income), net 262 89 49 Other (income) expense, net 14 139 (78) 4,801 Income before income taxes 6,661 2,887 Income tax expense 934 348 772 NET INCOME $ 5,727 $ 2,539 $ 4,029 Earnings per common share: Basic 3.64 $ 3.56 $ $ 1.63 $ 2.55 Diluted $ 1.60 $ 2.49 Weighted average common shares outstanding: Basic 1,573.0 1,558.8 1,579.7 Diluted 1,609.4 1,591.6 1,618.4 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. 2021 FORM 10-K 57

Answer rating: 100% (QA)

The Nike company is in a strong financial position based on the explanation below according ... View the full answer