Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
Paying user area
Try for free
Nike Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Nike Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Nike Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
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).
The financial data reveals several notable trends and fluctuations over the six-year period.
- Current Liabilities
-
The current liabilities generally increased from 7,866 million USD in 2019 to a peak of 10,730 million USD in 2022, followed by a decline in 2023 and a rise again in 2024. Specifically, accounts payable showed variability but maintained a high level, peaking in 2022 at 3,358 million USD before decreasing slightly.
Significant volatility is evident in the current portion of long-term debt, with a sharp increase to 500 million USD in 2022 and again to 1,000 million USD in 2024, suggesting refinancing or short-term debt restructuring.
Notes payable remained low and relatively stable, fluctuating between 2 million and 10 million USD.
The current portion of operating lease liabilities showed a slight upward trend, rising from 445 million USD in 2020 to 477 million USD in 2024, indicating ongoing lease obligations.
- Compensation and Benefits
-
Compensation and benefits costs displayed variability, increasing from 1,232 million USD in 2019 to a peak of 1,737 million USD in 2023, before declining to 1,291 million USD in 2024. This pattern may indicate workforce adjustments or changes in benefit programs.
- Reserves and Allowances
-
Sales-related reserves decreased steadily from 1,218 million USD in 2019 to 994 million USD in 2023, but rose notably in 2024 to 1,282 million USD, potentially reflecting increased provisions for sales returns or allowances.
The allowance for expected loss on sale decreased from 405 million USD in 2020 to 358 million USD in 2021, then increased to 397 million USD in 2022, with no data thereafter.
- Accrued Liabilities and Taxes
-
Accrued liabilities increased from 5,010 million USD in 2019 to a peak of 6,220 million USD in 2022, before slightly decreasing to 5,725 million USD by 2024.
Income taxes payable showed fluctuation, with a low of 156 million USD in 2020 rising sharply to 534 million USD in 2024, indicating variability in tax obligations.
- Total and Non-Current Liabilities
-
Total liabilities experienced a substantial increase from 14,677 million USD in 2019 to around 25,040 million USD in 2022, then declined towards 23,680 million USD by 2024.
Non-current liabilities followed a parallel trend, soaring from 6,811 million USD in 2019 to over 15,000 million USD in the early years, and then gradually declining to about 13,087 million USD by 2024. This decline was particularly influenced by the long-term debt, which peaked at 9,413 million USD in 2021 and dropped to 7,903 million USD by 2024.
Operating lease liabilities excluding the current portion steadily decreased over the period, from 2,913 million USD in 2020 to 2,566 million USD in 2024, reflecting potentially reduced lease commitments.
- Shareholders’ Equity
-
Shareholders’ equity grew steadily from 9,040 million USD in 2019 to a peak of 15,281 million USD in 2022, before a slight decline to 14,430 million USD in 2024. Retained earnings showed notable volatility, turning negative in 2020 (-191 million USD), recovering strongly in subsequent years, but declining again to 965 million USD in 2024.
Capital in excess of stated value demonstrated consistent growth from 7,163 million USD in 2019 to 13,409 million USD in 2024, indicating ongoing capital injections or equity issuances.
Accumulated other comprehensive income fluctuated between positive and negative values, suggesting sensitivity to other comprehensive income components such as foreign currency translation adjustments or unrealized gains/losses on investments.
- Total Assets
-
The total of liabilities and shareholders’ equity increased significantly from 23,717 million USD in 2019 to over 40,000 million USD in 2022, declining thereafter to 38,110 million USD in 2024, indicating substantial growth in the overall balance sheet size with some contraction in the last two years.
- Additional Observations
-
Endorsement compensation and dividends payable emerged as line items only in later years, steadily increasing, which may reflect changes in corporate payout policies or marketing expenditures.