Forecasting Analysis-Nike

        This assignment has been conducted for calculating the finical analysis of the Nike for many perspectives and these perspectives are considered as the variables of this study. These all indicators will be analyzed against the sales of the Nike which means sales Nike are pretending as the dependent variable.  The time series data is used for analyzing the indicators of this and the time period include the data of the five years from 2014 to 2018. The data for all indicators have been collected from the various finical web sites which are; Yahoo, finance, Fred economic and morning stars. Data for the sales is collected from the morning stars and for the ISM data is collected by using the web site of the Yahoo finance and the rest indicator’s data is collected by the Fred economic.

Nike Overview of Forecasting Analysis

        In this project there is discussion about the one of the most important multinational company for the garments named as NIKE. This is an American multinational company that is involved in manufacturing, designing and developing the new kind of professional garments that includes jackets, t shirt, joggers etc. the Nike Company was founded in 1964 and their headquarters are located in Beaverton, United States of America and Oregon.  Bill Bowerman and Phil Knights were the founders of this company. The main competitors of the Nike Company are Addias, foot lockers, Puma, Under Armour etc. the Nike Company is the world’s largest supplier of the sports shoes and garments. This company is also the largest manufacture of the sports equipment that includes shoes, sport kits and many sports accessories. In 2012 the Nike Company has employed more than 44000 employees worldwide for increasing their revenue more than 50%

In this regression analysis the dependent variable is the sales of Nike organization and independent variable are the average weekly Hours. The P value is 0.90 which indicate the significance of the model. The model well fits up to 0.17. The dependent variable is sale which is influenced up to 0.005% by the independent variable.

Average weekly initial claims for unemployment insurance of the Nike

    The p value for initial claim is 0.0002 which means the significance of the model is low. T Stat is 20.12 which means that the model best fits the study. The R square is 0.99 which means that the independent variable has huge impact on dependent variable (Higgins 2007).

Manufacturers' new orders, consumer goods and materials of the Nike

    The value of R square is 0.94 which determines huge impact of manufacturing new order on the sales of the organization. The P value of model is 0.005 & T Stat is 7.2 which indicates best fit of the model.

ISM index of new orders of the Nike

Manufacturers' new orders, nondefense capital goods excluding aircraft orders of the Nike

    This variable has almost no influence over the dependent variable.  The p value of the model is 0.85 which makes it a bit less significant (SINHA 2012).

Building permits, new private housing units of the Nike 

Sales Forecast of the Nike

        In the above table the forecasted income statement is presented which shows that in the upcoming years the sales of Nike Corporation are growing with the rate of 10 years. The growth rate is estimated by keeping the previous growth rates of the revenue in mind.  The EPS of the organization has also increased with the rate of 10 %.  Over the past several years it can be seen that the revenue of the organization has increased which means that in the upcoming years the revenue of Nike Corporation will grow instead of decline. The net income of the corporation also increased significantly therefore by keeping the increasing trend in mind the net income of the corporation is forecasted (Pandey 2015).

Forecasted Stock Prices of the Nike

        The forecasted stock prices are calculated by evaluating the historical price data. In the year 2018 the stock price is near 74 which means that over the years the stock price will increase with the rate of 2%. The future stock prices indicates that the stock prices are fairly priced.

Conclusion on finical analysis of the Nike

        If all the above data is analyzed then it is evident that the sales of Nike Corporation are growing with the rate of 10 years. The growth rate is estimated by keeping the previous growth rates of the revenue in mind.  The EPS of the organization has also increased with the rate of 10 %.  Over the past several years it can be seen that the revenue of the organization has increased which means that in the upcoming years the revenue of Nike Corporation will grow instead of decline. The forecasted stock prices are calculated by evaluating the historical price data. In the year 2018 the stock price is near 74 which means that over the years the stock price will increase with the rate of 2%. The future stock prices indicates that the stock prices are fairly priced.

References of finical analysis of the Nike

Higgins. 2007. Analysis for Financial Management. Tata McGraw-Hill Education.

Melville, Alan. 2017. International Financial Reporting: A Practical Guide . 6. Pearson Higher Ed.

Pandey, I.M. 2015. Financial Management. Vikas Publishing House.

SINHA, GOKUL. 2012. FINANCIAL STATEMENT ANALYSIS . PHI Learning Pvt. Ltd.