Nike Inc. (NYSE:NKE)

The data on property, plant, and equipment over the six-year span shows distinct trends and shifts across various asset categories and overall figures.

Land and improvements

This category exhibits relative stability, fluctuating marginally between US$326 million and US$363 million with no clear upward or downward trend. The value peaked in 2021 and slightly decreased afterward, indicating minimal acquisition or disposals of land-related assets during the period.

Buildings

Building values remained almost flat between 2019 and 2020 but experienced a significant increase in 2021, rising from US$2,442 million to US$3,365 million. This increase was followed by modest incremental growth through 2024, concluding at US$3,439 million. The surge in 2021 suggests notable capital investment or revaluation in building assets during that year.

Machinery and equipment

The value increased steadily from US$2,726 million in 2019 to US$3,123 million in 2024, reflecting ongoing investment in machinery and equipment. There was a slight dip in 2022 from the previous year's peak but the overall trend remains upward, indicating continuous asset upgrades or acquisitions.

Internal-use software

Internal-use software displayed a downward trend from US$1,609 million in 2019 to US$1,391 million in 2021, followed by a rebound to US$1,807 million in 2024. This suggests an initial reduction in software assets or amortization exceeding additions, with renewed investment or capitalization in later years.

Leasehold improvements

This category showed consistent and marked growth each year, rising from US$1,563 million in 2019 to US$2,023 million in 2024. The steady increases reflect ongoing enhancements or modifications made to leased properties.

Construction in process

The value of assets under construction presents notable volatility, increasing from US$797 million in 2019 to a peak of US$1,086 million in 2020, then sharply declining to US$311 million in 2021. Afterwards, it climbed again to US$525 million in 2023 before a significant drop to US$193 million in 2024. This fluctuation indicates an irregular pattern of ongoing projects, with periods of both rapid initiation and near completion or suspension of construction activities.

Property, plant, and equipment, gross

The aggregate gross value generally increased, starting at US$9,469 million in 2019 and rising to US$10,914 million by 2024. The most substantial growth occurred between 2020 and 2021, consistent with the surge in building values. The growth thereafter was moderate, showing steady asset additions overall.

Accumulated depreciation

Accumulated depreciation increased steadily in magnitude from -US$4,725 million in 2019 to -US$5,914 million in 2024. This reflects the ongoing wear and usage of fixed assets over time, consistent with aging assets and depreciation policies.

Property, plant, and equipment, net

Net property, plant, and equipment values showed moderate fluctuation. Starting at US$4,744 million in 2019, the value peaked at US$5,081 million in 2023 but dipped slightly to US$5,000 million in 2024. This indicates that while gross asset additions were made, depreciation has steadily reduced net book value, and some variations could be due to asset disposals or revaluations.

In summary, the data reveals a general pattern of investment in buildings, machinery, leasehold improvements, and software, coupled with substantial depreciation accumulation. Construction in process values showed irregular behavior, suggesting varied project timing. Net property, plant, and equipment values remained relatively stable with a mild upward trend, indicating balanced asset management over the period.

The analysis of the annual property, plant, and equipment data reveals discernible trends in the company's asset age and useful life estimations over the examined period.

Average Age Ratio (%)

The average age ratio shows a gradual upward trend from 51.7% in 2019 to 55.87% in 2024, indicating a consistent increase in the proportion of asset life that has elapsed. This suggests that the company's fixed assets are aging slightly over time, possibly implying less frequent asset renewal or replacement.

Estimated Total Useful Life (in years)

The estimated total useful life remained steady at 13 years from 2019 to 2021, then increased to 14 years in 2022, reached 15 years in 2023, before returning to 13 years in 2024. This fluctuation indicates periodic reevaluation of the asset life expectancy, with a temporary extension during 2022 and 2023 that was reversed in 2024.

Estimated Age, Time Elapsed Since Purchase (in years)

The estimated age metric is relatively stable, holding at 7 years from 2019 to 2022, increasing to 8 years in 2023, and then reverting to 7 years in 2024. This minor variation may reflect adjustments in asset tracking or reclassification rather than significant changes in asset acquisition patterns.

Estimated Remaining Life (in years)

The remaining useful life remains consistently at 6 years from 2019 to 2022, rises to 7 years in 2023, and returns to 6 years in 2024. This pattern correlates with the shifts observed in total useful life and estimated age, demonstrating corresponding changes in asset lifespan assumptions or maintenance strategies.

Overall, the data indicate subtle increases in asset age and intermittent revisions to expected asset longevity, reflecting an adaptive approach to asset management and valuation. The return to initial life estimates in the last recorded year suggests a reassessment aligning closer to historical assumptions after a brief extension phase.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the six-year period, increasing from $4,725 million in 2019 to $5,914 million in 2024. This steady rise suggests ongoing wear and usage of property, plant, and equipment assets, reflecting standard depreciation practices and asset aging.

Property, Plant and Equipment, Gross

Gross property, plant, and equipment values exhibit a gradual increase from $9,469 million in 2019 to $10,914 million in 2024. The moderate growth indicates continued investment in fixed assets, though the rise is not steep, suggesting a measured approach to capital expenditure.

Land and Improvements

The value of land and improvements remains relatively stable throughout the period, fluctuating slightly but ending at $329 million in 2024, nearly the same as in 2019. The minimal variation indicates limited acquisitions or disposals in land holdings.

Average Age Ratio

The average age ratio of the property, plant, and equipment shows a gradual increase from 51.7% in 2019 to 55.87% in 2024. This rising trend implies that, on average, the assets are aging, which may impact maintenance costs and efficiency. The growth in average age aligns with the increase in accumulated depreciation.

Property, plant and equipment, gross

The gross value of property, plant, and equipment exhibited a general upward trend from 2019 to 2024. Beginning at $9,469 million in 2019, it increased steadily with slight variations each year, reaching $10,914 million by 2024. This growth suggests ongoing investment in physical assets or acquisitions over the period analyzed.

Land and improvements

The value of land and improvements showed minor fluctuations across the years. Starting at $329 million in 2019, it experienced a gradual increase to $363 million by 2021, followed by a decrease to $326 million in 2023, before slightly increasing again to $329 million in 2024. This pattern indicates stable land asset values with small variances possibly due to revaluations or disposals.

Depreciation expense

Depreciation expense demonstrated moderate year-to-year changes, remaining generally consistent with some fluctuations. It rose from $705 million in 2019 to a peak of $796 million in 2024, after experiencing a slight decline in 2022 and 2023. The increase in 2024 may be attributable to asset additions or changes in depreciation policies.

Estimated total useful life

The estimated total useful life of property, plant, and equipment remained relatively stable, mostly around 13 years. It was constant at 13 years from 2019 to 2021, increased to 14 years in 2022, reached 15 years in 2023, and returned to 13 years in 2024. These variations could reflect adjustments in asset lifespan estimates, potentially influenced by asset condition or accounting practices.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the six-year period. Starting at $4,725 million in 2019, it increased steadily to $5,914 million by 2024. This indicates a continuous allocation of depreciation expense over the years, reflecting ongoing usage and aging of property, plant, and equipment assets.

Depreciation Expense

The depreciation expense displayed relatively stable amounts with minor fluctuations. It began at $705 million in 2019, peaked slightly at $744 million in 2021, experienced a mild decline to $703 million in 2023, before rising notably to $796 million in 2024. The increase in 2024 could suggest accelerated depreciation or additions of assets with a higher depreciation charge.

Time Elapsed Since Purchase

The time elapsed since purchase remained mostly constant at 7 years, with a deviation to 8 years in 2023. This suggests that the age of the recorded assets has generally remained consistent, indicating regular replacement or additions that balance the average asset life.

Overall Analysis

The consistent increase in accumulated depreciation coupled with relatively stable depreciation expenses reflects sustained investment in and aging of fixed assets. The slight rise in depreciation expense in 2024 may imply changes in asset composition or depreciation policies but does not indicate significant volatility. The stable average age of assets suggests a steady asset management strategy without abrupt disposals or acquisitions. These patterns highlight a controlled and predictable approach to managing the company’s property, plant, and equipment.

Property, plant and equipment, net

Over the six-year period, the net value of property, plant, and equipment showed a relatively stable trend with some fluctuations. Starting at 4,744 million USD in 2019, it increased slightly each year until 2021, reaching 4,904 million USD. There was a mild decline in 2022 to 4,791 million USD, followed by a significant rise to 5,081 million USD in 2023, before a slight decrease to 5,000 million USD in 2024. Overall, the net asset base has demonstrated resilience with a return to a level higher than at the beginning of the period.

Land and improvements

The value of land and improvements remained relatively constant throughout the years. It rose modestly from 329 million USD in 2019 to 363 million USD in 2021, then experienced a decrease back to approximately the initial value with minor variations, ending at 329 million USD in 2024. This suggests limited acquisitions or disposals of land and improvements, maintaining a steady asset base in this category.

Depreciation expense

Depreciation expense showed a gradual increase from 705 million USD in 2019 to 744 million USD in 2021, indicating ongoing asset wear or accumulation of depreciable assets. The expense then slightly decreased in 2022 and 2023, before a notable jump to 796 million USD in 2024. This increase in the last year may reflect either accelerated depreciation or addition of assets with higher depreciation rates.

Estimated remaining life

The estimated remaining life of property, plant, and equipment remained steady at 6 years for most of the timeframe, except for a slight increase to 7 years in 2023, before returning to 6 years in 2024. This indicates consistent asset life assumptions over time, with a minor temporary adjustment, possibly due to changes in asset composition or re-evaluation of asset conditions.