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 …showed first 75 words of 7669 total…

…showed last 75 words of 7669 total…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