Nike vs. Reebok Financial Results Analysis (Fiscal Year 1998-2002)

Outlines I. Background -------------------------------------- 3 II. Financial Ratios Analysis ----------------------- 3 III. WACC Analysis ----------------------------------- 9 IV. Working Capital Management ---------------------- 13 V. Dividend Policy and Tax Treatment Impacts -------- 15 VI. Comments ----------------------------------------- 15 Assumptions and Notes ---------------------------- 17 I Background Nike, Inc., a Oregon corporation incorporated in 1968, and Reebok International Ltd., a Massachusetts corporation organized in 1979, are both global companies engaged in the design and marketing of sports and fitness products. We will analyze their past five year's financial reports …

…market price is assumed as the sum of monthly price in a fiscal year divide by 12. Note 1. Diana R. Harrington, Corporate Financial Analysis, in a global environment, Seventh Edition, Thomson South-Western 2. http://www.fool.com/news/commentary/2003/commentary030501lal.htm http://www.its.caltech.edu/~xiuqin/strategy/competition.htm http://www.nike.com/nikebiz/nikebiz.jhtml?page=17 http://www.reebok.com/us/about/ir/financial/default.htm http://finance.yahoo.com http://www.sec.gov