Nike Inc. (NYSE:NKE)

The data indicates the trend of current assets and adjusted current assets over a six-year period from May 31, 2019, to May 31, 2024. Both financial items are reported in millions of US dollars.

Current Assets

The current assets displayed a consistent upward trend from 2019 to 2022. Beginning at 16,525 million US dollars in 2019, they rose to a peak of 28,213 million US dollars in 2022. Following this peak, a decline is observed in the subsequent year to 25,202 million US dollars in 2023. In 2024, current assets slightly increased again, reaching 25,382 million US dollars, yet remaining below the 2022 peak.

Adjusted Current Assets

Adjusted current assets follow a very similar pattern to that of current assets. Starting from 16,555 million US dollars in 2019, they increased consistently, peaking at 28,247 million US dollars in 2022. Subsequently, they declined to 25,237 million in 2023, and then showed a modest increase to 25,417 million in 2024.

Comparison and Insights

The adjusted current assets are slightly higher than the reported current assets in all years, but the differences are marginal. The broad trend across both measures indicates growth in current assets until 2022, followed by a contraction in 2023, and stabilization in 2024. This trend may reflect changing operational or market conditions influencing liquidity and short-term asset management. The peak in 2022 could indicate optimal asset accumulation before a strategic or externally driven reduction in 2023, with a slight recovery or stabilization afterward.

Total assets

The total assets of the company show a consistent upward trend from May 31, 2019, through May 31, 2022, increasing from $23,717 million to $40,321 million. This indicates growth in the company's asset base during this period. However, there is a noticeable decline in total assets in the year ending May 31, 2023, dropping to $37,531 million, followed by a slight recovery to $38,110 million in the subsequent year. The decrease in 2023 suggests either asset sales, write-downs, or other factors reducing asset holdings, with the partial rebound in 2024 indicating some stabilization. Overall, total assets expanded significantly over the six-year period but experienced volatility in the last two years.

Adjusted total assets

Adjusted total assets also exhibit a general growth trend from May 31, 2019, to May 31, 2022, rising from $26,605 million to $38,690 million. This increase aligns with the growth in total assets during the same period, though the adjusted figures start from a higher base. Notably, adjusted total assets decrease each subsequent year after 2022, dropping to $35,767 million in 2023 and further to $35,825 million in 2024. This indicates a slight but sustained contraction in adjusted asset measurements toward the end of the period analyzed. The divergence between total assets and adjusted total assets in the later years suggests changes in adjustments applied, potentially related to valuation methods or asset categorizations.

Total liabilities

Over the analyzed period, total liabilities exhibited significant fluctuations. Initially, there was a sharp increase from approximately 14,677 million USD in 2019 to 23,287 million USD in 2020, representing a substantial rise. This upward trajectory continued modestly to 24,973 million USD in 2021 and 25,040 million USD in 2022. Subsequently, total liabilities decreased slightly in 2023 to 23,527 million USD, followed by a minor increase to 23,680 million USD in 2024. Overall, the trend indicates an initial phase of rapid growth in liabilities followed by stabilization in recent years, with values remaining around the 23,500 to 25,000 million USD range.

Adjusted total liabilities

Adjusted total liabilities were reported only in 2019 with a value of approximately 17,911 million USD, while from 2020 onwards, the values align exactly with total liabilities. This suggests that any adjustments considered earlier were either standardized or discontinued in subsequent years. The trend for adjusted liabilities, therefore, mirrors that of total liabilities from 2020 forward, indicating consistent reporting or treatment of liabilities during this latter period.

Shareholders’ equity

The shareholders’ equity exhibited fluctuations over the six-year period. Initially, there was a decline from 9,040 million USD in 2019 to 8,055 million USD in 2020. Subsequently, a significant recovery occurred in 2021, reaching 12,767 million USD, followed by a continued increase to a peak of 15,281 million USD in 2022. Afterward, a reduction took place in 2023 to 14,004 million USD, with a slight increase again in 2024 to 14,430 million USD. This pattern suggests overall growth in equity after the initial decline in 2020, with some volatility towards the most recent years.

Adjusted shareholders’ equity

The adjusted shareholders’ equity followed a similar trend to the unadjusted figure, though consistently reported at lower values. It decreased from 8,694 million USD in 2019 to 7,537 million USD in 2020, then rose significantly to 11,727 million USD in 2021 and further to 13,650 million USD in 2022. However, from 2022 onwards, adjusted equity declined to 12,240 million USD in 2023 and slightly decreased further to 12,145 million USD in 2024. This indicates that while adjusted equity also experienced growth following 2020, it faced a more pronounced downward trend in the last two years compared to the unadjusted equity.

Overall trends and insights

Both shareholders’ equity and adjusted shareholders’ equity were negatively impacted in 2020, likely reflecting broader economic or company-specific challenges during that period. Recovery was strong and sustained through 2021 and 2022, with equity levels significantly exceeding pre-2020 figures. The divergence in trends after 2022, with unadjusted equity stabilizing or slightly increasing but adjusted equity declining, might suggest adjustments related to valuation, reserves, or other accounting considerations not reflected in the nominal equity figures. The general pattern shows resilience with a cautionary note regarding the adjusted equity's recent performance.

The financial data reveals several notable trends in the capital structure over the six-year period ending May 31, 2024.

Total Reported Debt

The total reported debt experienced a significant increase from 2019 to 2020, rising from $3,479 million to $9,657 million. Following this sharp rise, it remained relatively stable, fluctuating slightly but showing a gradual decrease, arriving at $8,909 million in 2024.

Shareholders’ Equity

Shareholders’ equity decreased from $9,040 million in 2019 to $8,055 million in 2020, but subsequently showed a strong upward trend, peaking at $15,281 million in 2022. After this peak, equity declined somewhat to $14,430 million by 2024, indicating some volatility but generally maintaining a higher level than at the beginning of the period.

Total Reported Capital

Total reported capital rose continuously from $12,519 million in 2019 to $24,711 million in 2022, followed by a decline to $23,339 million in 2024. This suggests overall growth in the company’s capital base, with a modest contraction in recent years.

Adjusted Total Debt

Adjusted total debt paralleled the trend of reported debt but at consistently higher values, increasing sharply from $6,713 million in 2019 to a peak of $13,015 million in 2020. From 2020 onward, adjusted total debt declined steadily to $11,952 million by 2024.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity showed a decrease from $8,694 million in 2019 to $7,537 million in 2020, followed by a significant rise, reaching $13,650 million in 2022. This was succeeded by a decline to $12,145 million by 2024, mirroring the trend observed with reported equity but with slightly lower absolute values.

Adjusted Total Capital

The adjusted total capital grew consistently from $15,407 million in 2019 to $26,277 million in 2022, then decreased to $24,097 million in 2024. The expansion phase was marked by strong increases across both debt and equity components, while the subsequent decline suggests some rebalancing of capital components occurred post-2022.

Overall, the data indicates a period of substantial capital growth fueled initially by an increase in debt levels, followed by equity expansions that further boosted total capital. The post-2022 period reflects a moderate reduction in adjusted and reported capital figures, predominantly driven by declines in both debt and equity balances, which may reflect strategic capital management or market conditions affecting the company’s financing mix.

The financial data reveals fluctuations in both net income and adjusted net income for the observed periods.

Net income

Net income experienced a notable decline from 4,029 million USD in 2019 to 2,539 million USD in 2020, reflecting a significant reduction. Subsequently, there was a robust recovery and growth in 2021, reaching 5,727 million USD. The figures remained relatively stable with a slight increase in 2022 to 6,046 million USD, followed by a decrease to 5,070 million USD in 2023. The most recent data for 2024 shows another increase to 5,700 million USD, indicating partial recovery.

Adjusted net income

Adjusted net income follows a somewhat similar trajectory but with some variation. Starting at 4,386 million USD in 2019, it dropped sharply to 2,056 million USD in 2020. Afterward, there was a recovery to 4,897 million USD in 2021 and an increase to 6,035 million USD in 2022. However, unlike net income, it declined marginally to 4,867 million USD in 2023 and increased slightly to 5,025 million USD in 2024. The adjusted figures tend to be lower than the reported net income in the later years.

Overall, the data indicates external or internal factors around 2020 that severely impacted profitability, followed by periods of recovery. The disparity between net income and adjusted net income accounts for possible extraordinary items or one-time effects influencing overall profitability. The general trend from the lowest point in 2020 reflects resilience and recovery, though fluctuations remain evident in subsequent years.