Everyone picks a different company. It must be a company with public financials. Look up the most re

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Everyone picks a different company.  It must be a company with public financials.  Look up the most recent financials and look at the financial statements.

Find 3 items that you could easily understand and 3 items that you were not familiar with.  Discuss

 

 

 

example

For this assignment, I chose to research Nike. I took a look at the most recent financials, updated for the period ending on August 31, 2015. A little bit of a disclaimer: all of the numbers presented below are in thousands. 

I know what Gross Profit is: (Total Revenue – Cost of Revenue). This can be found using figures within the Income Statement; for the period ending August 31, 2015, the gross profit was 3,995,000. With that, Nike operated with a profit of 1,418,000 for the aforementioned period and has operated at a profit for quite a while. I can tell by looking at the 'Operating Income or Loss' section on the Income Statement.  Accounts Payable, Short/Current Long Term Debt, and Other Current Liabilities make up Total Current Liabilities, which can be found on the Balance Sheet. For the period, these added up to 6,334,000. 

One of the items I am unfamiliar with is 'Net Income Applicable To Common Shares,' shown at the very bottom of the Income Statement. It's relatively easy to deduce what it is (I think); this is the net income that is shown as proof for those with common stock in the company. It's interesting that I never noticed it. Another thing I am unfamiliar with are 'Deferred Long Term Asset/Liability Charges,' found in Assets and Liabilities, respectively, on the Balance Sheet. Again, I think I know what these items are and I would guess that they represent the asset/liability charges that Nike has postponed putting on the books (for whatever reason) until the end of the period. The third item I found that I was unfamiliar with can be found in the Stockholders' Equity section of the Balance Sheet, known as  'Misc. Stocks Options Warrants.' I am totally unfamiliar with these, so I am not even going to try to guess what they are. 

Source(s): https://finance.yahoo.com/q/is?s=NKE, https://finance.yahoo.com/q/bs?s=NKE, https://finance.yahoo.com/q/cf?s=NKE

    • Posted: 4 years ago
    • Budget: $15
     
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