Common-Size Balance Sheet: Assets
Nike Inc., common-size consolidated balance sheet: assets
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 analysis of the financial data reveals several notable trends in the composition of assets over the examined periods.
- Cash and Equivalents
- This category fluctuates, showing a rise from 18.83% in 2019 to a peak of 26.64% in 2020, followed by a decline to 19.83% in 2023, and then an increase again to 25.87% in 2024, indicating variable liquidity management.
- Short-term Investments
- Short-term investments have generally increased from a low 0.83% in 2019, peaking at 10.97% in 2022, but have subsequently declined to 4.52% by 2024. This suggests a shift towards more liquid assets recently.
- Accounts Receivable, Net
- Accounts receivable as a percentage of total assets decreased sharply in 2020 to 8.77% from 18.01% in 2019, then stabilized somewhat in subsequent years, maintaining a range just above 11%. This may imply tighter credit policies or changes in revenue recognition.
- Inventories
- The inventory ratio decreased from 23.7% in 2019 to a low of 18.16% in 2021, increased again to 22.53% in 2023, and decreased in 2024 to 19.73%, reflecting fluctuations in stock levels or demand forecasting accuracy.
- Prepaid Expenses and Other Current Assets
- These assets declined progressively from 8.3% in 2019 to 4.86% in 2024, indicating a reduction in prepaid outlays or reclassification of such assets.
- Current Assets
- Overall, current assets as a percentage of total assets decreased from 69.68% in 2019 to a low of 65.59% in 2020, rebounded to nearly 70% in 2021 and 2022, and then declined again to approximately 66.6% by 2024, suggesting moderate shifts in short-term asset composition and liquidity strategy.
- Property, Plant and Equipment, Net
- There was a clear decline in net property, plant, and equipment from 20% in 2019 down to 11.88% in 2022, with a slight recovery to 13.12% in 2024, which might reflect asset disposals, depreciation, or less capital spending during this period.
- Operating Lease Right-of-Use Assets, Net
- Introduced in 2020 with 9.88%, this category has steadily declined to 7.13% by 2024, indicating a reduction in leased asset utilization or lease terminations.
- Identifiable Intangible Assets, Net
- Intangible assets have slightly decreased over time from 1.19% in 2019 to 0.68% in 2024, implying amortization exceeding new intangibles acquisition.
- Goodwill
- Goodwill remains a small component, fluctuating narrowly around 0.6% to 0.75%, without significant change, suggesting stable acquisition or impairment activity.
- Deferred Income Taxes and Other Assets
- This category increased steadily from 8.48% in 2019 to 11.84% in 2024, indicating growth in deferred tax assets or reclassification of other assets.
- Non-current Assets
- Non-current assets as a whole rose from 30.32% in 2019 to around 34.41% in 2020, fluctuated slightly thereafter, and ended just above 33% in 2024, highlighting a general investment in long-term asset categories despite some shifts within their compositions.
In summary, the data presents a dynamic asset structure with a strong emphasis on current assets, particularly cash and equivalents, alongside a gradual decline in fixed assets and a moderate increase in deferred income taxes and other assets. The trends suggest strategic responses to liquidity needs, capital investment decisions, and asset management over the period reviewed.