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, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Net income	3,219)	5,700)	5,070)	6,046)	5,727)	2,539)
Depreciation and amortization	775)	796)	703)	717)	744)	721)
Deferred income taxes	(288)	(497)	(117)	(650)	(385)	(380)
Stock-based compensation	709)	804)	755)	638)	611)	429)
Impairment and other	33)	48)	156)	123)	53)	398)
Net foreign currency adjustments	37)	(138)	(213)	(26)	(138)	23)
(Increase) decrease in accounts receivable	(257)	(329)	489)	(504)	(1,606)	1,239)
(Increase) decrease in inventories	120)	908)	(133)	(1,676)	507)	(1,854)
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets	(224)	(260)	(644)	(845)	(182)	(654)
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities	(426)	397)	(225)	1,365)	1,326)	24)
Changes in certain working capital components and other assets and liabilities	(787)	716)	(513)	(1,660)	45)	(1,245)
Adjustments to reconcile net income to net cash provided by operations	479)	1,729)	771)	(858)	930)	(54)
Cash provided by operations	3,698)	7,429)	5,841)	5,188)	6,657)	2,485)
Purchases of short-term investments	(3,234)	(4,767)	(6,059)	(12,913)	(9,961)	(2,426)
Maturities of short-term investments	319)	2,269)	3,356)	8,199)	4,236)	74)
Sales of short-term investments	3,062)	4,219)	4,184)	3,967)	2,449)	2,379)
Additions to property, plant and equipment	(430)	(812)	(969)	(758)	(695)	(1,086)
Other investing activities	8)	(15)	52)	(19)	171)	31)
Cash (used) provided by investing activities	(275)	894)	564)	(1,524)	(3,800)	(1,028)
Proceeds from borrowings, net of debt issuance costs	—)	—)	—)	—)	—)	6,134)
Increase (decrease) in notes payable, net	(1)	—)	(4)	15)	(52)	49)
Repayment of borrowings	(1,000)	—)	(500)	—)	(197)	(6)
Proceeds from exercise of stock options and other stock issuances	551)	667)	651)	1,151)	1,172)	885)
Repurchase of common stock	(2,985)	(4,250)	(5,480)	(4,014)	(608)	(3,067)
Dividends, common and preferred	(2,300)	(2,169)	(2,012)	(1,837)	(1,638)	(1,452)
Other financing activities	(85)	(136)	(102)	(151)	(136)	(52)
Cash provided (used) by financing activities	(5,820)	(5,888)	(7,447)	(4,836)	(1,459)	2,491)
Effect of exchange rate changes on cash and equivalents	1)	(16)	(91)	(143)	143)	(66)
Net increase (decrease) in cash and equivalents	(2,396)	2,419)	(1,133)	(1,315)	1,541)	3,882)
Cash and equivalents, beginning of year	9,860)	7,441)	8,574)	9,889)	8,348)	4,466)
Cash and equivalents, end of year	7,464)	9,860)	7,441)	8,574)	9,889)	8,348)

Based on: 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), 10-K (reporting date: 2020-05-31).

Net Income Trend

The company experienced fluctuating net income over the years, with a peak in 2022 at 6,046 million USD followed by a decline to 3,219 million USD in 2025. The highest growth occurred between 2020 and 2021, while the subsequent years showed volatility and a notable decrease by 2025.

Depreciation and Amortization

This expense remained relatively stable, with slight increases and decreases, peaking in 2024 at 796 million USD. The variations are minimal, indicating consistent capital asset usage and amortization patterns.

Deferred Income Taxes

Deferred income taxes showed significant fluctuations, with large negative values indicating tax liabilities or adjustments. The largest negative spike occurred in 2022 (-650 million USD), followed by a partial recovery but remaining negative through 2025.

Stock-Based Compensation

Stock-based compensation expenses generally increased from 429 million USD in 2020 to a peak of 804 million USD in 2024, before declining in 2025. This suggests rising employee compensation costs tied to stock options, peaking prior to a slight reduction.

Impairment and Other Expenses

There was a significant decrease in impairment expenses after 2020, dropping from 398 million USD to much lower values, indicating a reduction in asset impairments or one-time charges over the years.

Net Foreign Currency Adjustments

Foreign currency adjustments fluctuated, with negative impacts notably in 2021 and 2023. The adjustments reflect exposure to exchange rate volatility, with occasional positive effects such as in 2025.

Working Capital Changes

Accounts Receivable: There was a shift from a large increase in working capital in 2020 to decreases in subsequent years, indicating variable collections and sales activity impact on cash flow.
Inventories: Inventory fluctuations were significant, with a large reduction in 2020, a mixed pattern afterward, and a positive inventory increase in 2024 and 2025, suggesting variable inventory management or demand changes.
Other Current and Non-current Assets and Liabilities: Adjustments in prepaid expenses and liabilities revealed inconsistent patterns with large reductions at certain periods, impacting working capital and cash flow variability.

Cash Flows from Operations

Operating cash flows increased substantially in early years, peaking in 2024 at 7,429 million USD. However, there was a sharp decline to 3,698 million USD in 2025, mirroring the net income trend.

Investing Activities

Cash used in investing activities was significantly negative in early years but turned positive in 2023 and 2024 due to shorter-term investments' maturities and sales outweighing purchases. Capital expenditures showed a declining trend, indicating possibly reduced investment in property, plant, and equipment.

Financing Activities

Debt and Borrowings: Borrowings were substantial in 2020 but absent in later years, with notable repayments occurring in 2023 and 2025, reflecting a deleveraging strategy.
Stock Issuance and Repurchases: Proceeds from stock options remained fairly stable, while stock repurchases were considerable in all years, especially high in 2023, indicating shareholder return emphasis.
Dividends: Dividend payments showed a steady increase annually, demonstrating a commitment to returning capital to shareholders.

Overall Cash Position

Cash and equivalents exhibited volatility, with significant increases in 2020 and 2024, and declines in 2022, 2023, and 2025. This demonstrates the impact of operational variability and financing activities on liquidity.

Summary of Observations

The company faced fluctuating profitability and cash flow performance throughout the period, with peaks in 2021-2022 and declines toward 2025. Working capital and investing activities contributed to cash flow volatility. Financing strategies shifted from borrowing to debt repayment, accompanied by ongoing stock repurchases and increased dividend payments, suggesting a focus on shareholder returns and capital structure optimization. Currency risks remained a factor, affecting foreign exchange adjustments periodically.

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Nike Inc. (NYSE:NKE)

Cash Flow Statement