Nike Inc. (NYSE:NKE)

The data indicates a fluctuating trend in the current assets and adjusted current assets over the reported periods. Initially, there is a steady increase from May 31, 2020, to May 31, 2022, with current assets rising from 20,556 million US dollars to 28,213 million US dollars, and adjusted current assets showing a similar pattern with a slightly higher starting point and ending at 28,247 million US dollars in 2022.

Post-2022, both current assets and adjusted current assets show a decline. From May 31, 2023, to May 31, 2025, current assets decrease from 25,202 million to 23,362 million, while adjusted current assets similarly decline from 25,237 million to 23,389 million. The reduction is gradual over these years but indicates a reversal after the prior increasing trend.

The adjusted current assets values closely mirror the current assets figures throughout the periods, suggesting minimal adjustments. The margin between the two measures remains consistently small, indicating that adjustments have a relatively minor impact on the overall measure of current assets.

Summary of Trends

Initial growth in current and adjusted current assets from 2020 to 2022

Consistent decrease in both measures from 2023 to 2025

Minimal difference between current assets and adjusted current assets over all periods

Overall, the data suggests that after a period of asset growth, there has been a contraction in current asset holdings in the most recent years, which may have implications for short-term liquidity and operational financing strategies.

Total assets

The total assets exhibit an initial upward trend from 31,342 million USD in 2020 to a peak of 40,321 million USD in 2022. Following this peak, there is a decline, with total assets decreasing to 37,531 million USD in 2023 and showing minor fluctuations to end at 36,579 million USD in 2025. Overall, this suggests an expansion phase until 2022, succeeded by a contraction or consolidation phase over the subsequent years.

Adjusted total assets

Adjusted total assets follow a similar pattern as total assets, increasing from 30,824 million USD in 2020 to 38,464 million USD in 2022. Thereafter, adjusted assets decline more sharply than total assets, dropping to 33,938 million USD by 2025. The adjusted figures consistently remain slightly below the reported total assets, indicating possible adjustments for certain asset valuations or accounting considerations. The faster decline in adjusted assets compared to total assets from 2023 onward may reflect a reduction in asset quality or reclassification.

The analysis of the annual financial data reveals the following trends in the liabilities of the company over the six-year period:

Total liabilities

Total liabilities showed a general upward movement from 2020 to 2022, increasing from approximately 23,287 million USD to a peak of 25,040 million USD in 2022. After this peak, there is a discernible decline over the next three years, with liabilities reducing to 23,366 million USD by 2025.

Adjusted total liabilities

Adjusted total liabilities mirror a similar trend to total liabilities. Starting at 23,287 million USD in 2020, they rose to 24,973 million USD in 2021, slightly lower than the peak in total liabilities of 2022, and then gradually decreased to 23,240 million USD by 2025. This suggests that the adjustments made do not significantly alter the overall trend of liabilities.

Trend insights

Both total and adjusted liabilities reflect a peak in the middle of the period, around 2021-2022, followed by a steady reduction towards 2025. The reduction after 2022 could indicate efforts to manage and reduce debt or liabilities. The closeness of adjusted liabilities to total liabilities throughout the years implies that the adjustments are minor and the underlying financial structure with regards to liabilities remains stable.

The financial data reveals the behavior of shareholders' equity and adjusted shareholders' equity over a span of six years, from the fiscal year ending May 31, 2020, through May 31, 2025.

Shareholders’ Equity

The shareholders’ equity displays an overall increasing trend from 2020 to 2022, rising from US$8,055 million to a peak of US$15,281 million. This positive growth suggests an accumulation of retained earnings or capital injections during this period. However, a decline is observed starting in 2022, with equity falling to US$14,004 million in 2023, US$14,430 million in 2024, and further down to US$13,213 million in 2025. The initial growth phase indicates strengthening financial position, while the subsequent decline may point to increased distributions, share repurchases, or losses.

Adjusted Shareholders’ Equity

The adjusted shareholders’ equity follows a parallel pattern but at lower levels compared to the unadjusted figures, starting at US$7,537 million in 2020 and reaching a high of US$13,650 million in 2022. It then shows a consistent decrease to US$12,240 million in 2023, US$12,145 million in 2024, and US$10,698 million in 2025. The adjustment appears to remove certain items, which consistently lower the equity values but retain the same overall trend of growth followed by a decline.

In summary, both metrics demonstrate a notable increase over the initial three years, indicating an improving equity base, followed by a weakening trend during the last three years, suggesting either operational challenges, capital return strategies, or other factors impacting equity negatively. This pattern warrants further investigation into the underlying causes of the recent declines to understand their implications fully.

The financial data reveals several notable trends over the six-year period analyzed.

Total reported debt

Total reported debt shows a consistent decline over the period, decreasing from $9,657 million in 2020 to $7,966 million in 2025. This trend suggests a reduction in debt levels, potentially indicating improved debt management or repayment strategies.

Shareholders’ equity

Shareholders’ equity experienced significant growth from 2020 through 2022, rising from $8,055 million to $15,281 million. However, after peaking in 2022, it decreases in 2023 and fluctuates slightly downward to $13,213 million by 2025. This pattern may reflect variations in retained earnings, stock repurchases, or other equity-related activities that affected net worth.

Total reported capital

Total reported capital, the sum of debt and equity, increased steadily from $17,712 million in 2020 to $24,711 million in 2022, followed by a decline to $21,179 million in 2025. This change mirrors the movements in both debt and equity, indicating a contraction in overall capital employed toward the end of the period.

Adjusted total debt

Adjusted total debt consistently decreased from $13,015 million in 2020 to $11,018 million in 2025, aligning with the trend observed in reported debt. This confirms an ongoing reduction in liabilities when factoring in any adjustments made to debt reporting.

Adjusted shareholders’ equity

Adjusted shareholders’ equity exhibits growth from $7,537 million in 2020 to a peak of $13,650 million in 2022, before declining steadily to $10,698 million in 2025. This movement parallels the pattern seen in reported equity, suggesting similar influencing factors on adjusted net worth.

Adjusted total capital

Adjusted total capital rose from $20,552 million in 2020 to $26,277 million in 2022, then followed a downward trend to $21,716 million by 2025. The adjustments do not alter the general pattern of growth followed by a contraction in available capital resources.

Overall, the data indicates a phase of capital expansion culminating in 2022, after which both debt and equity metrics decline, leading to reduced total capital levels by 2025. The decline in debt levels throughout the entire period may suggest deliberate deleveraging efforts, while fluctuations in equity could reflect dynamic internal and external financial factors affecting the company's net asset position.

Net Income Trend

Net income shows a significant increase from 2,539 million USD in 2020 to a peak of 6,046 million USD in 2022. After reaching this high point, there is a notable decline in 2023 to 5,070 million USD, followed by a partial recovery in 2024 to 5,700 million USD. However, in 2025, net income drops substantially to 3,219 million USD, indicating increased volatility or challenges during this period.

Adjusted Net Income Trend

Adjusted net income follows a similar pattern to net income, increasing from 2,056 million USD in 2020 to nearly matching net income at 6,035 million USD in 2022. Post-2022, adjusted net income decreases steadily to 4,867 million USD in 2023 and further down to 5,025 million USD in 2024. The largest decline occurs in 2025, with adjusted net income falling to 2,612 million USD, representing a significant reduction compared to previous years.

Comparative Observations

The difference between net income and adjusted net income narrows over time, particularly by 2022, suggesting adjustments become less substantial relative to reported earnings. Nonetheless, the sharp decline in both metrics by 2025 points to potentially adverse operational or market factors impacting profitability. The volatility observed in the last two years signals a period of financial strain or restructuring.