Analysis of Debt
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Total Debt (Carrying Amount)
Nike Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-05-31), 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).
The data on debt-related items reveals significant fluctuations over the reported periods, with varying trends in both short-term and long-term obligations.
- Current portion of long-term debt
- This component shows notable volatility. From a low of 3 million US dollars in May 2020, it spikes sharply to 500 million in May 2022, then rises further to 1000 million by May 2024. The value is missing for May 2021 and May 2023, but the available data indicates a marked increase in this debt category towards the later years.
- Notes payable
- Notes payable remain relatively low and stable overall, with an exceptional spike in May 2020 reaching 248 million dollars. Apart from this outlier, the figures fluctuate modestly between 2 and 10 million, concluding at 6 million in both May 2023 and May 2024. This outlier likely reflects a short-term financing event specific to that year.
- Long-term debt, excluding current portion
- Long-term debt excluding the current portion exhibits a general upward trajectory from 3464 million in May 2019 to a peak near 9413 million in May 2021, followed by a gradual decline to 7903 million by May 2024. This trend suggests substantial long-term borrowings accumulated up to 2021, then a steady repayment or restructuring reducing outstanding balances through subsequent years.
- Total short-term borrowings and long-term debt (carrying amount)
- The total combined debt amount aligns closely with the long-term debt movement, given its dominant size. It rises markedly from 3479 million in May 2019 to a peak of 9657 million in May 2020, then declines moderately to 8909 million by May 2024. This overall pattern indicates the company's total debt load expanded significantly during 2019-2020 before stabilizing and gradually decreasing in later years.
In summary, short-term debt components, particularly the current portion of long-term debt, display substantial volatility and increasing balances in recent years, potentially indicating refinancing activities or increased short-term obligations. Notes payable are generally minimal aside from an anomalous increase in 2020. Long-term indebtedness expanded sharply until about 2021 and has since contracted, contributing to a stabilization and modest reduction in total borrowings by 2024. These patterns may reflect strategic capital structure management responding to operational needs and market conditions over the analyzed period.
Total Debt (Fair Value)
| May 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes payable | |
| Long-term debt, including current portion | |
| Total short-term borrowings and long-term debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-05-31).
Weighted-average Interest Rate on Debt
Weighted average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-05-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =