Nike Inc was started in 1967 and is headquartered at Oregon, USA. The firm is listed on New York Stock Exchange. The main activities of the company are to design, develop and sell its footwear, apparel, equipment, accessories and services. The company has direct operations in 25 countries apart from USA (Nike Inc).
The company’s revenues grew 10.08% from $27,799 million in 2014 to $30,601 million in 2015. The growth in net income was higher at 21.54%, recording net income of $2,693 in 2015. This meant that the net profit margin for the company increased from 9.69% in 2014 to 10.70% in 2015 (Nike Inc).
The growth in the balance sheet was also significant with fixed assets growing at 14.82% while total liabilities grew at 14.45% in 2015. The earnings per share for the stockholders increased 25% from $1.52 in 2014 to $1.90 in 2015 (Nike Inc).
A much higher growth during the year as compared to some of its peers, coupled with higher operating efficiency has resulted in net income being significantly higher in 2015. This growth for the company meant that the shareholders received higher dividends, increasing from $0.93 in 2014 to $1.08 in 2015.
The company has managed to add to shareholder wealth through its good operational results, resulting in increase in market valuation of the company as well as through higher dividends. Good financial results growth for the investors has meant that the company’s share price has increased too. The average share price for the company has increased from $42 in 2014 to $56 in 2015 (Financial Times).
Taking both the sources of growth together, the higher dividend as well as the capital gains through share price increase, it can be inferred that the shareholder wealth has increased significantly during the year.
References
Nike Inc. 2015 Form 10-K. Nike Inc. Retrieved from http://s1.q4cdn.com/806093406/files/doc_financials/2015/ar/docs/nike-2015-form-10K.pdf.
Financial Times. Company Information. Financial Times. Retrieved from http://markets.ft.com/research/Markets/Tearsheets/Summary?s=NKE:NYQ.
