Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Nike Inc., consolidated cash flow statement

US$ in millions

12 months ended:	May 31, 2026	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Net income	3,108)	3,219)	5,700)	5,070)	6,046)	5,727)
Depreciation and amortization	747)	775)	796)	703)	717)	744)
Deferred income taxes	(96)	(288)	(497)	(117)	(650)	(385)
Stock-based compensation	715)	709)	804)	755)	638)	611)
Impairment and other	50)	33)	48)	156)	123)	53)
Net foreign currency adjustments	22)	37)	(138)	(213)	(26)	(138)
(Increase) decrease in accounts receivable	(1,207)	(257)	(329)	489)	(504)	(1,606)
(Increase) decrease in inventories	(31)	120)	908)	(133)	(1,676)	507)
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets	519)	(224)	(260)	(644)	(845)	(182)
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities	(959)	(426)	397)	(225)	1,365)	1,326)
Changes in certain working capital components and other assets and liabilities	(1,678)	(787)	716)	(513)	(1,660)	45)
Adjustments to reconcile net income to net cash provided by operations	(240)	479)	1,729)	771)	(858)	930)
Cash provided by operations	2,868)	3,698)	7,429)	5,841)	5,188)	6,657)
Purchases of short-term investments	(1,316)	(3,234)	(4,767)	(6,059)	(12,913)	(9,961)
Maturities of short-term investments	556)	319)	2,269)	3,356)	8,199)	4,236)
Sales of short-term investments	1,021)	3,062)	4,219)	4,184)	3,967)	2,449)
Additions to property, plant and equipment	(684)	(430)	(812)	(969)	(758)	(695)
Other investing activities	(65)	8)	(15)	52)	(19)	171)
Cash (used) provided by investing activities	(488)	(275)	894)	564)	(1,524)	(3,800)
Repayment of borrowings	—)	(1,000)	—)	(500)	—)	(197)
Proceeds from exercise of stock options and other stock issuances	354)	551)	667)	651)	1,151)	1,172)
Repurchase of common stock	(146)	(2,985)	(4,250)	(5,480)	(4,014)	(608)
Dividends, common and preferred	(2,407)	(2,300)	(2,169)	(2,012)	(1,837)	(1,638)
Other financing activities	(93)	(86)	(136)	(106)	(136)	(188)
Cash used by financing activities	(2,292)	(5,820)	(5,888)	(7,447)	(4,836)	(1,459)
Effect of exchange rate changes on cash and equivalents	11)	1)	(16)	(91)	(143)	143)
Net increase (decrease) in cash and equivalents	99)	(2,396)	2,419)	(1,133)	(1,315)	1,541)
Cash and equivalents, beginning of year	7,464)	9,860)	7,441)	8,574)	9,889)	8,348)
Cash and equivalents, end of year	7,563)	7,464)	9,860)	7,441)	8,574)	9,889)

Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).

An analysis of the cash flow trends from 2021 to 2026 reveals a period of operational stability followed by a significant contraction in both net income and cash generation starting in 2025. While the organization maintained a strong cash position for much of the period, a marked decline in operational efficiency and a shift in capital allocation strategies are evident in the final two years of the data.

Operational Performance and Cash Generation: Net income exhibited relative stability between 2021 and 2024, peaking in 2022 at 6,046 million USD. However, a sharp downturn occurred in 2025 and 2026, with net income falling to 3,219 million USD and 3,108 million USD, respectively. This decline is mirrored in the cash provided by operations, which reached a peak of 7,429 million USD in 2024 before dropping precipitously to 2,868 million USD by 2026. The divergence between net income and operating cash flow is most notable in 2024, where adjustments significantly bolstered cash inflows.
Working Capital Volatility: Working capital components show significant fluctuation, particularly in accounts receivable and inventories. A substantial cash outflow related to accounts receivable occurred in 2026, totaling 1,207 million USD. Inventory levels caused a major cash drain in 2022 with an outflow of 1,676 million USD, which was later offset by a 908 million USD inflow in 2024. Furthermore, the increase in accounts payable and accrued liabilities, which provided positive cash flow in 2021 and 2022, shifted to significant outflows in 2025 and 2026, totaling 426 million USD and 959 million USD, respectively.
Investment Strategy and Capital Expenditure: The organization transitioned from aggressive investment in short-term securities to a more conservative liquidity posture. Purchases of short-term investments were highest in 2022 at 12,913 million USD but decreased steadily to 1,316 million USD by 2026. Capital expenditures for property, plant, and equipment remained relatively consistent, ranging between 430 million USD and 969 million USD annually, indicating a steady maintenance of physical infrastructure despite the decline in operational cash flow.
Financing Activities and Shareholder Returns: A strategic shift in shareholder remuneration is observable. Dividends showed a consistent annual increase, rising from 1,638 million USD in 2021 to 2,407 million USD in 2026. Conversely, the repurchase of common stock was highly aggressive between 2022 and 2025, with annual expenditures often exceeding 4,000 million USD, before dropping sharply to 146 million USD in 2026. This suggests a pivot away from share buybacks toward dividend sustainability and debt management, as evidenced by the 1,000 million USD repayment of borrowings in 2025.

Overall, the financial trajectory indicates a transition from a growth and aggressive buyback phase to a period of diminished earnings and tighter liquidity management. The significant reduction in cash provided by operations in the final two years, coupled with increased outflows in working capital, suggests mounting operational headwinds.

AI Ask an analyst for more

Download chart

Nike Inc. (NYSE:NKE)

Cash Flow Statement