Analysis of Property, Plant and Equipment
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Analysis of Debt
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Property, Plant and Equipment Disclosure
Nike Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-05-31), 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).
- Land and improvements
- The value of land and improvements showed minor fluctuations over the period. Starting at $345 million in 2020, it experienced a slight increase in 2021 to $363 million, followed by a gradual decline in the next two years, reaching $326 million in 2023. Thereafter, a modest recovery was observed, rising to $334 million by 2025. Overall, the changes remained relatively stable with minimal volatility.
- Buildings
- Buildings exhibited notable growth from $2,442 million in 2020 to a peak of $3,365 million in 2021. This was followed by a slight decline in 2022 to $3,170 million. Subsequently, a steady upward trend resumed, culminating in $3,510 million in 2025. The data indicate continued investment or revaluation in this category, maintaining an overall upward trend through the period.
- Machinery and equipment
- This category displayed some volatility. Starting at $2,751 million in 2020, the value increased to its highest point of $3,083 million in 2023 before declining to $2,954 million by 2025. Despite fluctuations, the overall trend suggests moderate variability without a clear directional increase or decrease.
- Internal-use software
- Internal-use software showed an inconsistent pattern. The value decreased from $1,483 million in 2020 to $1,391 million in 2021, then increased sharply to $1,616 million in 2022. After a slight dip in 2023, the value rose again to a peak of $1,807 million in 2024, followed by a moderate decline to $1,693 million in 2025. These fluctuations likely reflect changing investments or capitalizations in software development during the period.
- Leasehold improvements
- Leasehold improvements demonstrated a consistent upward trajectory. Beginning at $1,554 million in 2020, the value steadily increased each year, reaching $2,037 million by 2025. This indicates continued capital expenditure or enhancement of leased properties over time.
- Construction in process
- Construction in process showed considerable variability, with the value decreasing sharply from $1,086 million in 2020 to $311 million in 2021. A gradual increase followed, peaking at $525 million in 2023, before dropping again to $193 million in 2024 and then rebounding to $404 million in 2025. This pattern suggests uneven progress or shifting priorities in construction activities during the period.
- Property, plant and equipment, gross
- The gross property, plant, and equipment balance generally increased over the five-year span. Starting at $9,661 million in 2020, it rose steadily to reach $10,932 million by 2025. This incremental growth reflects overall expansion or capital additions to the company's fixed assets.
- Accumulated depreciation and amortization
- The accumulated depreciation and amortization consistently increased in magnitude, from -$4,795 million in 2020 to -$6,104 million in 2025. This steady rise indicates ongoing depreciation charges reflecting asset usage or aging in the property's asset base.
- Property, plant and equipment, net
- The net property, plant, and equipment values experienced some variability. After a slight increase from $4,866 million in 2020 to $5,081 million in 2023, the figure declined to $4,828 million by 2025. While net assets grew initially due to additions exceeding depreciation, the later decrease may reflect higher depreciation or disposals offsetting new investments.
Asset Age Ratios (Summary)
Nike Inc., asset age ratios
Based on: 10-K (reporting date: 2025-05-31), 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).
- Average Age Ratio
- The average age ratio demonstrates a steady increase over the observed periods, starting at 51.47% in 2020 and rising to 57.6% by 2025. This suggests that the property, plant, and equipment are aging progressively, indicating potential forthcoming replacements or upgrades might be necessary in the near future.
- Estimated Total Useful Life
- The estimated total useful life shows some variation, initially remaining constant at 13 years for 2020 and 2021, then increasing to 14 years in 2022, 15 years in 2023, dropping back to 13 years in 2024, and again rising to 14 years in 2025. This fluctuation may reflect changes in asset composition or improvements in asset durability assessment over time.
- Estimated Age (Time Elapsed Since Purchase)
- The estimated age remains relatively stable, mostly oscillating between 7 and 8 years during the period. Specifically, it is at 7 years for 2020 through 2022, rises to 8 years in 2023, reverts to 7 years in 2024, and again to 8 years in 2025. This relatively narrow range indicates that on average, asset age is maintained with moderate variation, implying consistent replacement or acquisition practices.
- Estimated Remaining Life
- The estimated remaining life consistently holds between 6 and 7 years across all periods. It stays at 6 years from 2020 through 2022, peaks at 7 years in 2023, and returns to 6 years for 2024 and 2025. This suggests stability in the remaining utility of the assets, aligned with the fluctuations seen in total useful life and asset age.
Average Age
Based on: 10-K (reporting date: 2025-05-31), 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).
2025 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land and improvements)
= 100 × ÷ ( – ) =
- Accumulated Depreciation and Amortization
- There is a consistent upward trend in accumulated depreciation and amortization from 2020 through 2025. The balance increased steadily from $4,795 million in 2020 to $6,104 million in 2025, indicating ongoing wear and usage of property, plant, and equipment assets over time.
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment shows a gradual increase across the observed period, rising from $9,661 million in 2020 to $10,932 million in 2025. This steady growth suggests regular capital investments and additions to fixed assets.
- Land and Improvements
- The value of land and improvements experienced minor fluctuations, starting at $345 million in 2020, declining slightly to $326 million in 2023 but then recovering to $334 million by 2025. This relatively stable figure indicates limited acquisition or disposal activity in land holdings.
- Average Age Ratio
- The average age ratio, representing the proportionate age of the fixed asset base, increased progressively from 51.47% in 2020 to 57.6% in 2025. This upward movement implies that the existing assets are aging and may signal a need for future capital expenditure to renew or replace older equipment.
- Overall Insights
- The data reflects a company maintaining and incrementally expanding its asset base while the assets collectively become older. The steady rise in accumulated depreciation alongside a growing gross asset value confirms ongoing asset utilization balanced with investment in new assets. The stable land values suggest a focus more on other asset categories. The increasing average age ratio could indicate upcoming capital renewal requirements to maintain operational efficiency.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-05-31), 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).
2025 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment exhibits a generally increasing trend over the periods under consideration. Starting at 9,661 million USD in May 2020, the value rises to 10,061 million USD in May 2021 and maintains incremental growth reaching 10,932 million USD by May 2025. The increase suggests ongoing investment or acquisition of assets, with a slight acceleration noted between May 2021 and May 2024.
- Land and Improvements
- Land and improvements show a fluctuating pattern. Initially increasing from 345 million USD in May 2020 to 363 million USD in May 2021, the value then declines to 330 million USD in May 2022 and remains relatively stable around 326 to 334 million USD through May 2025. This indicates a marginal reduction or disposal of land-related assets after 2021, followed by stabilization.
- Depreciation Expense
- Depreciation expense reflects some variability but generally remains within a close range. From 721 million USD in May 2020, the expense slightly increases to 744 million USD in May 2021, dips to 703 million USD in May 2023, and then rises again to 796 million USD in May 2024, before slightly decreasing to 775 million USD in May 2025. The movement in depreciation expense may relate to asset additions, changes in useful life estimates, or disposal of older assets.
- Estimated Total Useful Life
- The estimated useful life of the assets demonstrates some fluctuation over the years. It remains at 13 years during May 2020 and May 2021, increases to 14 years in May 2022, then to 15 years in May 2023, but returns to 13 years in May 2024 and back to 14 years in May 2025. This variation indicates periodic reassessment of asset longevity, which can influence depreciation calculations and capital expenditure planning.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-05-31), 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).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation and Amortization
- The accumulated depreciation and amortization amount has demonstrated a consistent upward trend over the analyzed period. It increased from $4,795 million in 2020 to $6,104 million in 2025. This steady growth indicates ongoing depreciation of the property, plant, and equipment assets, reflecting continuous usage and aging of these assets over time.
- Depreciation Expense
- The depreciation expense exhibited some fluctuation but remained relatively stable throughout the years. Starting at $721 million in 2020, it peaked slightly at $796 million in 2024 before decreasing to $775 million in 2025. This pattern suggests that while the company maintains a consistent depreciation charge, there may be minor variations due to changes in asset base or depreciation methods.
- Time Elapsed Since Purchase
- The time elapsed since purchase for the assets remained mostly stable, fluctuating between 7 and 8 years over the six-year span. This stability indicates a relatively steady asset replacement or acquisition cycle without significant changes in the average age of fixed assets.
- Overall Insights
- The data portrays a consistent management of property, plant, and equipment assets with gradual accumulation of depreciation. While the depreciation expense shows slight annual variations, accumulated depreciation's steady increase aligns with the aging asset base as indicated by the near-constant elapsed time metric. No abrupt changes suggest a stable asset utilization and replacement strategy during the period reviewed.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-05-31), 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).
2025 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment demonstrated slight fluctuations over the observed period. It started at 4,866 million USD in 2020, increased marginally to 4,904 million USD in 2021, then decreased to 4,791 million USD in 2022. In 2023, there was a rebound to 5,081 million USD, followed by a decline to 5,000 million USD in 2024, and further to 4,828 million USD in 2025. Overall, the net property, plant, and equipment values indicate moderate volatility with no clear long-term upward or downward trend.
- Land and Improvements
- The land and improvements category showed minor decreases and increases, starting at 345 million USD in 2020, reaching 363 million USD in 2021, then dropping to 330 million USD in 2022. The values remained relatively stable from 2022 through 2025, fluctuating slightly between 326 and 334 million USD. This suggests stable investment or valuation of land assets with no significant expansion or disposals.
- Depreciation Expense
- Depreciation expense displayed relatively consistent levels throughout the years, ranging from 703 million USD to 796 million USD. The expense started at 721 million USD in 2020, increased gradually to 744 million USD in 2021, decreased slightly to 717 million USD in 2022, and further to 703 million USD in 2023. There was a notable increase in 2024 to 796 million USD, followed by a slight decrease to 775 million USD in 2025. These fluctuations may reflect changes in asset composition or accelerated depreciation on certain assets during specific periods.
- Estimated Remaining Life
- The estimated remaining life of the assets remained fairly stable, predominantly at 6 years, with the sole exception of 2023, where it was recorded at 7 years. This stability suggests consistent asset aging and replacement policies, with the one-year extension in 2023 possibly reflecting asset revaluation or extensions in planned usage.