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Nike is the 1st largest and highly recognized brand in the sports industry. It's also the oldest, first debuting shoes in 1964. Under Armour
Nike is the 1st largest and highly recognized brand in the sports industry. It's also the oldest, first debuting shoes in 1964. Under Armour is the newest brand in the sports/running industry (1996), offering a modern trend design approach. Nike offers innovative technology with a better comfort approach. Interesting fact, they are the only brands in the world making "smart shoes" currently. These companies reported the following amounts in their financial statements (in millions): Nike (Year-end 5/31) Under Armour (Year-end 12/31) 2021 2020 2019 2021 2020 2019 Net Sales Revenue $ 44,538 $ 37,403 $ 39,117 $5,683 $ 4,475 $5,267 Cost of Goods Sold 24,576 21,162 21,643 2,822 2,315 2,797 Year-end Inventory 6,854 7,367 5,622 811 896 892 Average Inventory Inventory Turnover Average days to sell 1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2021 and 2020 for each company. 2. Discuss any trends, and compare the effectiveness of inventory managers at Nike to those at Under Armour. Both companies use the same inventory costing method. Which company, in which year, appears to have managed their inventory most successfully? A. Nike, 2021 B. Under Armour, 2021 C. Nike, 2020 D. Under Amour, 2020
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