Stock Analysis on Net
Stock Analysis on Net

Nike Inc. (NYSE:NKE)

Common-Size Income Statement 

Nike Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Revenues 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -55.44 -56.48 -54.02 -55.18 -56.58 -55.33
Gross profit 44.56% 43.52% 45.98% 44.82% 43.42% 44.67%
Demand creation expense -8.34 -7.93 -8.24 -6.99 -9.60 -9.59
Operating overhead expense -23.93 -24.05 -23.45 -22.25 -25.49 -22.88
Selling and administrative expense -32.27% -31.98% -31.69% -29.24% -35.09% -32.47%
Operating income 12.29% 11.55% 14.29% 15.58% 8.33% 12.20%
Interest income 0.84 0.58 0.20 0.08 0.17 0.21
Interest expense -0.52 -0.57 -0.64 -0.66 -0.40 -0.33
Interest income (expense), net 0.31% 0.01% -0.44% -0.59% -0.24% -0.13%
Other income (expense), net 0.44 0.55 0.39 -0.03 -0.37 0.20
Income before income taxes 13.04% 12.11% 14.24% 14.96% 7.72% 12.27%
Income tax expense -1.95 -2.21 -1.30 -2.10 -0.93 -1.97
Net income 11.10% 9.90% 12.94% 12.86% 6.79% 10.30%

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).

Revenues and Gross Profit
Revenues consistently represent 100% across all years, providing a stable baseline for analysis. Gross profit margins exhibit moderate fluctuations, starting at 44.67% in 2019, dipping slightly to 43.42% in 2020, then increasing to a peak of 45.98% in 2022 before declining again to 44.56% in 2024. This pattern indicates a generally strong ability to control cost of sales, despite some variability.
Cost of Sales
The cost of sales as a percentage of revenues ranges from 54.02% to 56.58%, with the lowest ratio observed in 2022 and the highest in 2020. The cost of sales decreased in the 2021-2022 period, improving gross margins, but saw an increase again in 2023 before slightly improving in 2024.
Expense Management
Demand creation expenses have generally declined from a high of -9.60% in 2020 to a lower range near -7.93% to -8.34% in more recent years, suggesting greater efficiency or a strategic shift in marketing spend. Operating overhead expense shows minor fluctuations around the 23-25% range, with a peak at 25.49% in 2020 and relative stability thereafter.
Selling and administrative expenses show some variability, with the highest value of -35.09% in 2020 and lower values around -29.24% to -32.27% in subsequent years. These fluctuations suggest adjustments in operational costs or changes in administrative efficiency.
Operating Income
Operating income as a percentage of revenues shows a notable dip in 2020 to 8.33% from 12.20% in 2019, followed by a recovery peaking at 15.58% in 2021. In following years, it declined to around 11.55% to 12.29%, indicating some volatility but maintaining profitability after earlier disruptions.
Net Interest and Other Income
Interest income exhibits a positive trend, increasing from 0.21% in 2019 to 0.84% in 2024, while interest expense decreases slightly, improving net interest income/expense from a negative -0.13% in 2019 to a positive 0.31% in 2024. This improvement suggests better management or favorable financing conditions over time.
Other income and expense fluctuate, with a negative impact in 2020 (-0.37%) but recovering to positive values near 0.44%-0.55% in recent years, contributing modestly to overall income.
Income Before and After Taxes
Income before income taxes reflects the trends seen in operating income, dropping to 7.72% in 2020, rebounding to approximately 15% in 2021, and stabilizing around 12-13% through 2024. Income tax expense shows variability but remains relatively low compared to total income, ranging from -0.93% to -2.21%, which underlines an effective tax rate fluctuation across years.
Net Income
Net income follows a similar pattern, with a significant fall in 2020 to 6.79% after starting at 10.30% in 2019, then recovering strongly to 12.94% in 2022 before settling around 9.9% to 11.1% in the latest periods. This reflects resilience and an ability to rebound following the challenges faced in 2020.