Nike Inc. (NYSE:NKE)

The financial information reveals fluctuating cash flows over the analyzed period, spanning from August 2019 to November 2025. Net income demonstrates considerable volatility, experiencing a significant decline in fiscal year 2020, followed by recovery and subsequent fluctuations. Operating cash flow generally mirrors this pattern, with a substantial positive impact from financing activities in fiscal year 2020, largely driven by borrowing. Investing activities consistently represent a cash outflow, primarily due to purchases of short-term investments and additions to property, plant, and equipment.

Net Income & Operating Cash Flow

Net income initially decreased from US$1,367 million in August 2019 to US$847 million in February 2020, reaching a low of -US$790 million in May 2020. It then recovered, peaking at US$1,874 million in August 2021, before exhibiting further variability. Cash provided by operations generally followed a similar trajectory, with a notable surge to US$2,473 million in November 2020, likely influenced by working capital adjustments. A significant decrease in operating cash flow is observed in the latter half of the period, with a low of US$222 million in August 2025.

Investing Activities

Investing activities consistently consumed cash throughout the period. Purchases of short-term investments represent the largest outflow component, with significant amounts ranging from approximately US$1,000 million to US$4,000 million per quarter. Additions to property, plant, and equipment also contribute to the outflow, though to a lesser extent. Maturities and sales of short-term investments partially offset these outflows, but not consistently.

Financing Activities

Financing activities demonstrate substantial fluctuations. A massive inflow of US$5,801 million in May 2020, attributed to proceeds from borrowings, significantly impacted overall cash flow. Repurchase of common stock and dividend payments consistently represent significant cash outflows. The period from February 2023 to November 2025 shows a consistent outflow from repurchase of common stock, ranging from approximately US$100 million to US$1,000 million per quarter.

Working Capital

Changes in working capital components exhibit considerable variability. Decreases in accounts receivable and inventories often provide cash inflows, while increases represent outflows. Fluctuations in accounts payable and accrued liabilities also contribute to cash flow variations. The "Changes in certain working capital components and other assets and liabilities" line item shows significant swings, indicating substantial adjustments in these accounts.

Non-Operating Items

Deferred income taxes, stock-based compensation, impairment, net foreign currency adjustments, and other non-operating items contribute to adjustments to reconcile net income to net cash provided by operations. These items demonstrate varying impacts, with deferred income taxes showing particularly large fluctuations, both positive and negative. Stock-based compensation consistently adds to cash flow, while impairment and other items show more erratic behavior.

Overall, the cash flow statement reflects a business navigating dynamic market conditions. The reliance on borrowing in fiscal year 2020 suggests a strategic response to challenges, while the subsequent fluctuations in net income and cash flow indicate ongoing operational and economic influences. The consistent investment in property, plant, and equipment suggests a commitment to long-term growth, and the significant share repurchase program indicates a return of capital to shareholders.