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.
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Nike Inc., consolidated cash flow statement
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).
- Net Income
- Net income exhibited a notable fluctuation over the six-year period. It declined sharply from 4,029 million USD in 2019 to 2,539 million USD in 2020, likely reflecting adverse conditions in that year. This was followed by a strong recovery, peaking at 6,046 million USD in 2022. However, net income declined again to 5,070 million USD in 2023 before rising to 5,700 million USD in 2024. Overall, the trend suggests resilience and recovery after the 2020 downturn.
- Depreciation
- Depreciation expenses remained relatively consistent across the years, fluctuating between 700 and 800 million USD. A slight increase to 796 million USD in 2024 may indicate recent investments in fixed assets or updated asset valuations.
- Deferred Income Taxes
- Deferred income taxes generally showed negative values from 2020 onward, signaling deferred tax liabilities or adjustments. The values fluctuated significantly, with a large negative impact of -650 million USD in 2022 and a smaller negative figure of -117 million USD in 2023. This volatility points to changes in tax planning or temporary differences.
- Stock-Based Compensation
- Stock-based compensation demonstrated a clear upward trend, increasing consistently from 325 million USD in 2019 to 804 million USD in 2024. This growing expense indicates a greater use of equity incentives as part of compensation strategies.
- Amortization, Impairment, and Other
- This category showed irregular movements, spiking notably to 398 million USD in 2020, likely due to impairment charges or write-downs in that year, before settling at lower levels, fluctuating between 15 and 156 million USD in other years.
- Net Foreign Currency Adjustments
- Foreign currency impacts varied widely and were mostly negative after 2019, with sizable negative adjustments of -213 million USD in 2023 and -138 million USD in 2024. This indicates currency market volatility affecting reported results.
- Working Capital Components
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- Accounts Receivable
- Changes in accounts receivable fluctuated dramatically, showing increases and decreases without a clear trend, such as a significant increase of 1,239 million USD in 2020 followed by a large decrease of -1,606 million USD in 2021.
- Inventories
- Inventories exhibited erratic changes, including a large decrease of -1,854 million USD in 2020 and a substantial increase of 908 million USD in 2024, reflecting changing inventory management or sales patterns.
- Prepaid Expenses and Other Assets
- These assets generally decreased, with negative changes each year, indicating usage or reductions in prepaid expenses and similar assets.
- Accounts Payable, Accrued Liabilities, and Other Liabilities
- This group saw positive changes in most years, suggesting increasing liabilities, except for a negative change in 2023 (-225 million USD).
- Other Working Capital and Assets/Liabilities
- Fluctuations were large and irregular, with notable decreases in 2020 and 2022 and a significant increase in 2024.
- Cash Provided by Operations
- Operational cash flow peaked at 6,657 million USD in 2021 then decreased in 2022 before rising again sharply to 7,429 million USD in 2024. The fluctuations correspond with trends in net income and working capital changes.
- Investing Activities
- Purchases of short-term investments varied substantially, with heavy investment activities peaking in 2021 and 2022. Maturities and sales of short-term investments also fluctuated, suggesting active investment portfolio management. Capital expenditures for property, plant, and equipment remained relatively steady, averaging around 800 to 1,100 million USD annually. Overall cash used in investing activities showed recovery from significant outflows in 2020 and 2021 to positive inflows in 2023 and 2024.
- Financing Activities
- Financing cash flows were notably volatile. The company repurchased common stock aggressively, especially in 2023 (-5,480 million USD) and 2024 (-4,250 million USD), indicating a strong return of capital to shareholders. Dividends steadily increased each year, reflecting a consistent dividend policy. Borrowings were substantial only in 2020, with no notable net borrowings thereafter. The overall cash used in financing activities was negative in most years except for a positive inflow in 2020, driven primarily by borrowings raised that year.
- Cash and Equivalents
- Cash and equivalents increased markedly in 2020 by 3,882 million USD, aligning with strong financing inflows. Subsequently, cash balances declined in 2022 and 2023 but rebounded in 2024 to end at 9,860 million USD, close to the highest recorded level in the period. Exchange rate effects on cash were minor compared to other factors.