Nike Inc. (NYSE:NKE)

The financial data reveals several notable trends over the analyzed periods from 2020 to 2025. The gross profit margin, expressed as a percentage of revenues, demonstrates moderate variability, peaking around 45.98% in 2022 before declining to 42.73% by 2025. This indicates fluctuating efficiency in controlling the cost of sales, which itself shows inconsistent patterns, moving from 56.58% to 57.27% over the years, with some intermediate decreases.

Demand creation expenses exhibit a non-linear trend, starting relatively high at 9.6% of revenues in 2020, decreasing to a low of 6.99% in 2021, and then oscillating before rising again to 10.13% by 2025. This suggests changing investments in marketing or promotional activities, with a notable increase in the most recent period. Operating overhead expenses remain somewhat stable around the low to mid-20s percentage range of revenues, showing minor fluctuations but no clear long-term increase or decrease.

Total selling and administrative expenses generally trend downward from 35.09% in 2020 to 29.24% in 2021 but subsequently rise to 34.74% by 2025. This pattern may reflect initial cost control efforts followed by increased spending or operational changes. Operating income as a percentage of revenues shows considerable variation, with a significant increase from 8.33% in 2020 to 15.58% in 2021, then gradually declining to 7.99% by 2025. This trend indicates peak operational profitability in the early part of the period, followed by diminishing returns in the later years.

Interest income and interest expense exhibit relative stability but minor changes worth noting. Interest income increases steadily from 0.17% to 0.87%, while interest expense fluctuates slightly but remains near the mid-range around 0.5% to 0.6%. The net interest income (expense) shifts from a net negative position early on to positive figures from 2023 onwards, suggesting improved management of interest-related items or changes in financing structure.

Other income or expense fluctuates between slightly negative and positive values but declines towards 0.16% in 2025, indicating some volatility but overall limited impact on income.

Income before income taxes follows a pattern comparable to operating income, rising from 7.72% to 14.96% in 2021, then tapering down to 8.39% by 2025. Income tax expense shows variable trends, with a peak of 2.1% in 2021 and lower rates around 1.44% in 2025, potentially reflecting changes in taxable income or tax planning strategies.

Net income as a percentage of revenues mirrors the overall profitability pattern, climbing significantly from 6.79% in 2020 to 12.94% in 2022, then declining to 6.95% by 2025. This pattern underscores an increase in profitability through 2022, followed by a return to near the initial level by 2025, highlighting potential challenges in maintaining profitability in later years.

Gross Profit Margin

Fluctuates around mid-40%, peaking in 2022, then declining by 2025.

Cost of Sales

Relatively high with some oscillations, trending slightly upward by 2025.

Demand Creation Expense

Varies over time with a notable increase in the final reported period.

Operating Overhead Expense

Remains mostly stable within a narrow range of 22% to 25% of revenues.

Selling and Administrative Expense

Decreases initially but rises again, nearing starting levels by 2025.

Operating Income

Peaks sharply in 2021, then declines close to initial levels by 2025.

Interest Income and Expense

Interest income increases; interest expense remains stable, improving net interest position from 2023 onward.

Other Income (Expense)

Small fluctuations with limited impact, trending downward by the end of the period.

Income Before Income Taxes

Follows operating income trends closely with a peak in 2021 and decline thereafter.

Income Tax Expense

Varies with peaks and troughs but generally decreases towards 2025.

Net Income

Reflects early growth in profitability, peaking around 2022 before falling back near starting values in 2025.