Nike Inc. (NYSE:NKE)

An analysis of the asset composition reveals a gradual shift in the balance sheet structure, characterized by a decrease in the proportion of current assets and a corresponding increase in non-current assets over the six-year period. Total current assets declined from 69.66% in 2021 to 64.05% by 2026, while non-current assets grew from 30.34% to 35.95%.

Liquidity and Cash Management

A notable reduction in the most liquid asset categories is observed. Cash and equivalents showed volatility, peaking in 2021 (26.20%) and 2024 (25.87%), but ending the period at 19.69%. Concurrently, short-term investments experienced a consistent downward trend, falling from 9.50% of total assets in 2021 to 3.81% in 2026, indicating a strategic shift in how liquid reserves are held or deployed.

Working Capital Trends

Accounts receivable, net, demonstrated a steady increase in its share of total assets, rising from 11.83% in 2021 to 15.44% in 2026, which may suggest a lengthening of collection cycles or an expansion in credit offerings. Inventories peaked in 2023 at 22.53% before stabilizing around 19.53% in 2026, reflecting a period of inventory accumulation followed by a return to previous baseline levels.

Non-Current Asset Structure

The increase in non-current assets is primarily driven by the growth of deferred income taxes and other assets, which nearly doubled from 7.74% in 2021 to 14.77% in 2026. In contrast, fixed assets remained relatively stable; property, plant, and equipment, net, fluctuated slightly between 11.88% and 13.54%. Operating lease right-of-use assets showed a marginal decline from 8.25% to 7.39% over the analyzed timeframe.

Intangible Assets and Goodwill

Identifiable intangible assets and goodwill consistently represented a negligible portion of the total asset base, with both metrics remaining below 1% throughout the entire period, indicating that the balance sheet is not heavily reliant on acquired intangibles or premium valuations from acquisitions.