Goodwill and Intangible Asset Disclosure
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
Item | Description | The company |
---|---|---|
Identifiable intangible assets, net | Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. | Nike Inc. identifiable intangible assets, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Goodwill | Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. | Nike Inc. goodwill increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Identifiable intangible assets and goodwill | Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. | Nike Inc. identifiable intangible assets and goodwill increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Adjustments to Financial Statements: Removal of Goodwill
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
Nike Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
Financial ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Nike Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Nike Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Nike Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Nike Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Nike Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
2023 Calculations
1 Total asset turnover = Revenues ÷ Total assets
= 51,217 ÷ 37,531 = 1.36
2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 51,217 ÷ 37,250 = 1.37
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Nike Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Adjusted Financial Leverage
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
2023 Calculations
1 Financial leverage = Total assets ÷ Shareholders’ equity
= 37,531 ÷ 14,004 = 2.68
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 37,250 ÷ 13,723 = 2.71
Solvency ratio | Description | The company |
---|---|---|
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Nike Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
2023 Calculations
1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 5,070 ÷ 14,004 = 36.20%
2 Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 5,070 ÷ 13,723 = 36.95%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Nike Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
2023 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 5,070 ÷ 37,531 = 13.51%
2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 5,070 ÷ 37,250 = 13.61%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Nike Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |