Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Nike Inc., consolidated income statement

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Cost of sales	(28,475)	(28,925)	(25,231)	(24,576)	(21,162)	(21,643)
Gross profit	22,887)	22,292)	21,479)	19,962)	16,241)	17,474)
Demand creation expense	(4,285)	(4,060)	(3,850)	(3,114)	(3,592)	(3,753)
Operating overhead expense	(12,291)	(12,317)	(10,954)	(9,911)	(9,534)	(8,949)
Selling and administrative expense	(16,576)	(16,377)	(14,804)	(13,025)	(13,126)	(12,702)
Operating income	6,311)	5,915)	6,675)	6,937)	3,115)	4,772)
Interest income	430)	297)	94)	34)	62)	82)
Interest expense	(269)	(291)	(299)	(296)	(151)	(131)
Interest income (expense), net	161)	6)	(205)	(262)	(89)	(49)
Other income (expense), net	228)	280)	181)	(14)	(139)	78)
Income before income taxes	6,700)	6,201)	6,651)	6,661)	2,887)	4,801)
Income tax expense	(1,000)	(1,131)	(605)	(934)	(348)	(772)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)

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).

Revenue Trends: Revenues exhibited fluctuations over the period, initially declining from 39,117 million USD in 2019 to 37,403 million USD in 2020, followed by a consistent upward trend reaching 51,362 million USD in 2024. The growth from 2020 onwards indicates a strong recovery and expansion phase.
Cost of Sales: The cost of sales showed a pattern generally aligned with revenue trends, decreasing slightly in 2020 compared to 2019, then increasing steadily to 28,475 million USD by 2024. Despite the overall increase, the rate of growth in cost of sales is less than that of revenues, implying enhanced cost control or improved margins.
Gross Profit: Gross profit followed an upward trajectory after the dip in 2020, rising from 16,241 million USD to 22,887 million USD in 2024. This improvement reflects both the recovery in revenues and effective cost management at the production or procurement level.
Demand Creation Expense: Demand creation expenses fluctuated, decreasing in 2021 but increasing thereafter, peaking at 4,285 million USD in 2024. This suggests renewed or intensified marketing and brand promotion activities, likely supporting revenue growth.
Operating Overhead Expense: Operating overhead expenses increased over the period, from 8,949 million USD in 2019 to a peak of 12,317 million USD in 2023, slightly declining to 12,291 million USD in 2024. The general upward trend indicates rising fixed or administrative costs despite some recent stabilization.
Selling and Administrative Expense: These expenses gradually rose from 12,702 million USD in 2019 to 16,576 million USD in 2024, reflecting increased investment in sales and administrative functions to support business growth.
Operating Income: Operating income showed volatility, dropping sharply in 2020 to 3,115 million USD from 4,772 million USD in 2019, then rebounding to a peak of 6,937 million USD in 2021. A subsequent decline ensued, with values stabilizing around 6,300 million USD in 2024, highlighting operational challenges impacting profitability post-2021.
Net Interest Income (Expense): Net interest expense shifted significantly over the period, starting with a net expense of 49 million USD in 2019 and turning into a net income of 161 million USD by 2024. This evolution is due to rising interest income alongside decreasing interest expense, enhancing overall financial income.
Other Income (Expense), Net: Other income and expense showed variability, with a negative value in 2020 followed by positive contributions in subsequent years, reaching 228 million USD in 2024. This impact is relatively minor but positively affects pre-tax income.
Income Before Income Taxes: Income before taxes mirrored the operating income and non-operating items trends, declining sharply in 2020 to 2,887 million USD, rebounding to between 6,200 and 6,700 million USD from 2021 to 2024, indicating resilient earnings capacity post-pandemic.
Income Tax Expense: The income tax expense fluctuated, with a significant drop in 2020 consistent with lower income, followed by an increase peaking at 1,131 million USD in 2023, then a slight decrease to 1,000 million USD in 2024. This trend corresponds with changes in income before taxes and potentially tax planning or rate changes.
Net Income: Net income followed income before taxes, dropping sharply in 2020 to 2,539 million USD, then recovering robustly to 5,700 million USD in 2024 after peaking at 6,046 million USD in 2022. This reflects an overall recovery and relatively strong profitability despite some fluctuations in operating income.

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Nike Inc. (NYSE:NKE)

Income Statement