STOCKS
Course
Name
Running Head: STOCKS
Institution Affiliation
In the United States there are three stock exchanges. This paper shall consider two of them, NYSE and NASDQ.
The New York stock exchange is one of the largest equities based exchange in the world and it is based in New York. It is regarded as the exchange for well established companies. It was founded in 1792 and is owned by the Intercontinental exchange. It has 2400 listings with a market capitalization of USD 19.3 Trillion. Nike Inc is listed in the NYSE.
National Association of Securities Dealers Automated Quotations is the second largest exchange in the world and was founded in 1971. It is regarded as exchange for high tech stocks. It is owned by NASDAQ inc and has 3018 listings with a market capitalization of USD 6.8 Trillion. It is also located in New York City. Apple Inc. Is listed in the NASDAQ.
Trading in NYSE is both electronic and over the counter while trading in NASDAQ is purely electronic. NASDAQ is a dealers market while NYSE is an auction market.
Nike Free cash flow
|
|
2013 |
2014 |
|
Operating cash flow |
3027 |
3003 |
|
Capital expenditure |
(636) |
(880) |
|
Free cash flow |
2391 |
2123 |
Apples
|
|
2013 |
2014 |
|
Operating cash flow |
53666 |
59713 |
|
Capital expenditure |
(9076) |
(9813) |
|
Free cash flow |
44590 |
49900 |
Apple has better financial performance compared to NIKE since it is capable of having money remain after catering for its asset base.
|
Ratios |
NIKE |
APPLE |
||
|
|
2013 |
2014 |
2013 |
2014 |
|
Gross Margin |
43.6 |
44.8 |
37.62 |
38.59 |
|
Operating Margin |
12.8 |
13.2 |
28.67 |
28.72 |
|
Return on Assets |
15.04 |
14.89 |
18.01 |
19.34 |
|
Asset Turnover |
1.53 |
1.54 |
0.89 |
0.83 |
|
Current ratio |
3.47 |
2.72 |
1.68 |
1.08 |
|
Quick ratio |
2.31 |
1.70 |
1.40 |
0.82 |
Nike has lower profitability than Apple, but has the ability to convert its assets into sales at a higher rate than Apple. In addition it has higher liquidity levels than Apple.
References
http://financials.morningstar.com
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