Nike Inc. (NYSE:NKE)

The financial data reflects the company's performance over a nearly two-decade period, from 2005 to 2024. An analysis of revenues and net income reveals notable trends, fluctuations, and periods of growth.

Revenues

Revenues exhibit a consistent upward trajectory with growth in nearly every fiscal year. The starting point in 2005 was approximately $13.7 billion, expanding steadily to reach over $51 billion by 2024. This represents almost a fourfold increase over the analyzed period, indicating strong top-line growth.

There were occasional periods of slower growth or slight declines, notably in 2009 and 2020. The dip in 2009 aligns with the global economic downturn during that period, where revenues slightly decreased from $19.2 billion in 2008 to $19.0 billion in 2010.

A more significant dip occurred in 2020, with revenues dropping to approximately $37.4 billion from $39.1 billion in 2019, possibly reflecting challenges related to that fiscal year. However, the company demonstrated strong recovery in subsequent years, achieving nearly $51.4 billion in 2024.

Net Income

Net income shows a general trend of growth, though with greater volatility compared to revenues. The initial figure in 2005 was $1.2 billion, increasing to a peak of $4.2 billion in 2017 before experiencing a sharp decline in 2018 to $1.9 billion.

This sudden drop interrupts the upward trajectory and may indicate one-time charges, restructuring, or other exceptional items affecting profitability.

After this decline, net income increased again, reaching a new peak of $6.0 billion in 2022. Following this, there was a decrease in 2023 to around $5.1 billion, with a modest recovery to $5.7 billion in 2024.

Despite the fluctuations, net income growth over the entire period is significant, increasing more than fourfold from 2005 to the latest year reported, showcasing improved profitability in the long term.

Overall Financial Health

The consistent revenue growth combined with increasing net income over nearly two decades indicates robust financial performance and effective cost management during most of the period.

Periods of revenue contraction and net income volatility suggest sensitivity to external economic factors and possibly internal strategic shifts. However, recovery following downturns demonstrates resilience and the capacity to regain growth momentum.

Current Assets Trend

Current assets demonstrated a general upward trajectory over the analyzed period. Starting at 6,351 million US dollars in 2005, a steady increase is observed almost every year, peaking at 26,291 million in 2021. After this peak, current assets slightly declined to 25,202 million in 2023 before stabilizing around 25,382 million in 2024. This growth indicates an expansion in liquid or short-term assets, which may reflect enhanced operational capacity or improved liquidity position.

Total Assets Trend

Total assets also showed a consistent growth pattern throughout the years. From a base of 8,794 million US dollars in 2005, there was a marked rise reaching 37,740 million in 2021, representing more than a fourfold increase. After peaking in 2022 at 40,321 million, total assets experienced a decline to 37,531 million in 2023, followed by a minor recovery to 38,110 million in 2024. This trend mirrors the company's overall asset base expansion, possibly through acquisitions, investments, or asset revaluation.

Comparative Analysis and Insights

The steady increase of both current and total assets over nearly two decades suggests sustained asset growth supporting business expansion. The relatively higher growth rate in total assets compared to current assets implies increment in long-term assets as well. The decline in both asset categories after 2021 may indicate some asset disposals, impairments, or shifts in investment strategy. Overall, the data suggests robust asset management with a focus on growth, while recent years reflect a phase of portfolio adjustment or consolidation.

The analysis of the financial data reveals several notable trends over the nearly two-decade period under review.

Current liabilities

Current liabilities generally experienced an upward trend from 2005 to 2024, starting at 1,999 million USD and rising to 10,593 million USD by 2024. There were consistent increases year over year with minor fluctuations, particularly between 2015 and 2017 when current liabilities decreased slightly from 6,334 to 5,358 million USD, before resuming growth. This trend indicates increasing short-term obligations, which could reflect growth in operational scale or shifts in working capital management.

Total debt

Total debt displayed more volatility compared to current liabilities. It began at 763 million USD in 2005, decreased to a low of 385 million USD in 2012, then surged sharply to a peak of 9,657 million USD in 2020 before slightly declining but remaining elevated around 8,900 million USD in 2023 and 2024. The debt increase from 2015 onwards suggests a strategic leveraging or financing activity, possibly for expansion or capital investments. The fluctuations in earlier years may indicate active debt management or refinancing.

Shareholders' equity

Shareholders’ equity showed a general upward trend from 5,644 million USD in 2005 to a high of 15,281 million USD in 2022, followed by a modest decrease to 14,430 million USD in 2024. The equity growth reflects value creation and retained earnings over time, despite some declines notably between 2017 and 2019 when equity dropped significantly from 12,407 million USD to 9,040 million USD, and again between 2022 and 2024. These declines might be associated with share repurchases, dividends, or impacts of reported losses.

Overall, the data suggests that the company experienced substantial growth and increased financial obligations over the period, accompanied by a generally strong equity position. The marked increase in debt levels in the latter half of the timeframe and the variability in equity figures warrant further investigation into financing strategies and profitability to assess financial sustainability and risk profile.

The operational cash flow displays variability with a generally upward trend over the examined period. From May 31, 2005, to May 31, 2009, cash generated from operations fluctuated between 1,571 million to 3,164 million US dollars, reaching a notable peak in 2010. Despite some subsequent declines, there is an overall increase peaking at 7,429 million US dollars by May 2024. This suggests improving operational efficiency and possibly expanding business activities over time.

Investing activities reveal a pattern of predominantly negative cash flows, indicating sustained investment outflows, except for brief positive intervals. Notably, years such as 2006, 2008, 2010, and 2012 witnessed substantial cash outflows exceeding 1 billion US dollars, consistent with capital expenditures or acquisitions. Conversely, positive cash inflows in investing activities occur sporadically (e.g., 2007, 2012, 2018, 2023, and 2024), possibly indicating asset sales or divestitures in those periods. The fluctuations and occasional reversals suggest strategic financial adjustments in asset management.

Financing activities predominantly generate negative cash flows throughout most years, signifying net repayment of debt, dividend payments, or share buybacks. Noteworthy are the significant outflows in years such as 2007 through 2010, and 2012 through 2019, with peaks in 2018 and 2019 exceeding 4 billion US dollars. An exception occurs in 2020, where a positive cash inflow of 2,491 million US dollars is recorded, possibly reflecting new debt issuance or equity financing. The large negative values in recent years (2022 to 2024) indicate continued financial restructuring or return of capital to shareholders.

Overall, the data presents a company exhibiting strong operational cash generation capacity, which finances substantial investments and significant financial outflows over time. The capital structure and investment strategy appear dynamic, adapting to changing operational and market conditions, with a marked emphasis on returning value to investors and sustaining growth initiatives.

Basic Earnings Per Share

The basic earnings per share (EPS) showed an overall upward trend from 2005 to 2024, starting at $0.58 in 2005 and rising to $3.76 in 2024. There were fluctuations observed, notably a decline from $1.12 in 2011 to $1.19 in 2018, followed by a significant recovery and growth peaking at $3.83 in 2022. A slight decrease occurred in 2023 to $3.27 before rising again in 2024. This indicates a long-term increase in profitability with some intermittent volatility.

Diluted Earnings Per Share

The diluted EPS closely followed the pattern of the basic EPS throughout the period. It increased steadily from $0.56 in 2005 to a peak of $3.75 in 2022, with a minor decrease to $3.23 in 2023 before an uptick to $3.73 in 2024. The trends in diluted EPS confirm the basic EPS pattern, reflecting consistent earnings growth, although some variations echo external or operational factors influencing earnings dilution.

Dividend Per Share

The dividend per share demonstrated continuous growth over the 20-year period. Beginning at $0.12 in 2005, dividends increased annually without regression, reaching $1.45 in 2024. This steady increase in dividends reflects a consistent policy of returning value to shareholders and suggests growing confidence in sustained earnings and cash flow generation capability.