Analysis of Nikes Performance Based on Its Financial Accounts and Ratios

Abstract

The COVID-19 epidemic has severely impacted all business activity in 2019-2021, especially the sportswear industry with governments lockdown and quarantine policies. Therefore, through this paper, the pandemics impact on Nikes financial performance is explored, and to what extent it has recovered. This paper mainly analyzes the sportswear conglomerate Nike, focusing on presenting its financial performance through ratio analysis between the years 2019, 2020, and 2021, as well as comparing it to major rival competitors in the industry to evaluate its overall performance. Data for this investigation are obtained through the companies respective official income statements and balance sheets, from which profitability, efficiency turnover, and liquidity ratios are derived to both vertically and horizontally compare Nikes financial performance for an accurate evaluation. Through this paper, it is uncovered that Nike has healthily recovered from the losses introduced by the pandemic, and maintains its highly competitive position compared to its rivals, Adidas, and Puma.