Financial accounting

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ANALAYSING OF FINANCIAL PROFITABILIY 
OF ADIDAS NIKE AND FILA 
GROUP 2
FINANCIAL ACCOUNTING
What is Finance? 
Finance is the science of managing financial 
resources in an optimal pattern i.e. the best 
use of available financial sources.
What is Financial profitability?
Profitability is a measure of efficiency of an 
organisation in other words, an 
organisation’s profit relative to its expenses. 
This is a company’s capability of generating 
profits from its operation. 
Nike Adidas Fila 
Above is the net income of Adidas, Nike and Fila from “
WALL STREET JOURNAL”
From the above table we see that all the three companies made losses in 2020 probably because of the CORONA pandemic that led to 
a slowdown in economic activities. 
The company is incurred more losses in 2020 was ADIDAS with a percentage loss of 78% as compared to her profitability in 2019.
Also this analysis show that NIKE performed better than ADIDAS and FILA which could be linked to their limited capacity to 
implement strategies to satisfy customers from their homes through platforms.
O
BEJCTIVES OF RESEARCH 
To find the financial profitability of ADIDAS NIKE and FILA
To analyse the impact of CORONA to the profitability of ADIDAS NIKE and FILA
DEFINATION
COMPANY PROFILES
Adidas' revenue for 2018 
was listed at €21.915 b
Operating Income 2.36 b 
Net income 1,702 b 
Total assests 15.612 b
Totaal equity 6.363 b
Web-site: adidas.com
Nike`s revenue for 2018 
was listed at US$36.390 b
Operating Income: 3.12 b
Net income 2.54 billion
Total assests 31.34 billion
Totaal equity 8.06 billion
Web-site: nike.com
Fila`s revenue for 2018 was 
approximately W220.019 b
Operating Income: 1.12 b
Net income 1.54 billion
Total assests 20.34 billion 
Totaal equity 5.06 billion
Web-site: fila.com
According to finacial operation and better 
investment to future projects of Adidas 
Nike and Fila create and bring better 
prospect to all Companies future 
performance. Adidas and Nike try to keep 
competative rivarly in being the best 
company in the world. Fila aslo puts a lot 
of effort for innovation and investment. 
The CORONA pandemic had a negative impact 
on commodity businesses as it reduced sales 
due to look down of most retail businesses as 
shown on the analysis above for the three giant 
companies.
All three companies have undertaken huge 
fiscal, economic and organizational changes in 
time of pandemic. Actions to response of 
maintaining business really influence 
profitability, sustainablility and other 
activities of the companies. 
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As a recommendation these companies 
should invest their plough back profits in 
other activities that are least affected by 
pandemics.

Also companies should improve and develop 
online platforms that will satisfy customers 
at their convenient time for greater 
satisfaction.

Companies need to work closely people who 
has broadly impact to environmentally, 
publicly and social in order to recover of 
their sales. 

Companies need to aims to make products 
more sustainable by using more recycled and 
biodegradable materials. 

Companies should invest more money their 
digital transformation to create better deliver 
online orders in modern world.

Finnaly, Companies should invest to 
innovative design and eco-friendly 
products 
for future sale.
RECOMMENDATION
CONCLUSION
PROFIT = REVENUE – EXPENSES
FINDINGS
FORECAST