$Nike (NKE.US)$ see chatgpt analysis of Nike's 2nd Q 2024 ke...
$Nike(NKE.US$ see chatgpt analysis of Nike's 2nd Q 2024 key indicators perfomance, looks not too bad ===>Based on Nike's Q2 2024 earnings report and key financial indicators, the company shows a mixed performance with both strengths and weaknesses. Here is a detailed analysis:
### Key Financial Indicators Analysis
#### Efficiency Ratios (TTM - Trailing Twelve Months)
1. **Cash Conversion Cycle (CCC)**:
- Decreased by 2.44% to 96.17 days, which suggests better efficiency in managing inventory and receivables.
2. **Receivable Turnover**:
- Increased by 3.10% to 12.00 times, indicating improved efficiency in collecting receivables.
3. **Inventory Turnover**:
- Increased slightly by 4.00% to 3.57 times, suggesting a slight improvement in inventory management.
4. **Fixed Assets Turnover**:
- Remained stable with a minor increase of 0.28% to 6.53 times, indicating consistent utilization of fixed assets.
5. **Total Asset Turnover**:
- Increased by 3.21% to 1.36 times, showing better use of the company’s total assets to generate sales.
#### Profitability Ratios (TTM)
1. **Gross Margin**:
- Improved by 2.38% to 44.56%, indicating better control over production costs.
2. **Operating Margin**:
- Increased by 6.39% to 12.29%, suggesting improved operational efficiency.
3. **Net Margin**:
- Increased by 12.11% to 11.10%, reflecting better overall profitability.
4. **EBITDA Margin**:
- Decreased by 7.10% to 12.29%, which could indicate rising operating expenses not related to core operations.
#### Financial Health Ratios
1. **Long-Term Debt to Equity Ratio**:
- Decreased by 13.26% to 72.55%, indicating a reduction in long-term debt relative to equity.
2. **Total Assets to Common Equity**:
- Slight decrease of 1.45% to 264.10%, reflecting a stable capital structure.
3. **Debt to Asset Ratio**:
- Decreased by 4.49% to 82.83%, showing a reduction in overall debt levels.
4. **Current Ratio**:
- Decreased by 12.00% to 2.40, which is still above 1, indicating good short-term liquidity.
5. **Quick Ratio**:
- Decreased by 5.52% to 1.51, maintaining adequate short-term liquidity without relying on inventory.
### Growth Ratios
1. **Revenue CAGR (3Y)**:
- Decreased by 55.94% to 4.87%, indicating a slowdown in revenue growth over three years.
2. **Net Income CAGR (3Y)**:
- Decreased by 100.61% to -0.16%, reflecting a decline in net income growth.
3. **Dividend CAGR (3Y)**:
- Decreased by 7.56% to 10.66%, showing a slower growth rate in dividend payouts.
### Summary
While Nike shows strengths in profitability and efficiency, there are concerns with growth and rising operating expenses. The mixed performance suggests that while the company is managing its operations well, it is facing challenges in revenue and net income growth, likely contributing to investor caution and the recent stock price drop.
### Impact on Stock Price
Given the weak sales guidance and challenges highlighted in the recent earnings report, it is likely that Nike's stock may experience further volatility in the short term. The mixed financial health and profitability ratios might not fully offset the negative sentiment from the weak growth outlook, which could impact the stock price negatively in the coming week.
Investors should watch for any updates or new strategic initiatives from Nike that might influence the stock performance positively, such as product launches or major marketing campaigns, especially around significant events like the Summer Olympic Games【9†source】【10†source】.
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