Nike Inc. (NYSE:NKE)

The financial data reveals distinct trends in the market value, invested capital, and market value added (MVA) for the subject over the periods from May 31, 2020, through May 31, 2025.

Market (fair) value

There is an initial increase from 167,352 million US dollars in 2020 to 262,765 million US dollars in 2021, indicating a strong market valuation growth. This is followed by a decline over the next three years, dropping to 116,027 million US dollars by 2024. Subsequently, there is a sharp and substantial increase to 7,178,987 million US dollars in 2025, representing an extraordinary jump compared to all prior years.

Invested capital

The invested capital shows minor fluctuations, starting at 19,083 million US dollars in 2020, slightly increasing and decreasing over the years, with values generally between 19,883 million and 22,129 million US dollars. The invested capital remains relatively stable without extreme volatility throughout the period.

Market Value Added (MVA)

The MVA follows a pattern similar to the market value. It increases sharply to 241,743 million US dollars in 2021 from 148,269 million US dollars in 2020, then decreases continuously in subsequent years down to 93,898 million US dollars in 2024. Thereafter, there is an abrupt surge to 7,159,104 million US dollars in 2025, paralleling the market value's dramatic rise. This suggests a significant enhancement of market perception and value creation relative to invested capital in the latest year.

Overall, the data indicates a period of growing market value and value added until 2021, followed by a gradual decline until 2024. The invested capital, however, maintains relative consistency without large variations. The final year, 2025, shows an exceptional increase in both market value and MVA, representing a massive shift in valuation metrics that warrants further investigation to understand the driving factors behind this extraordinary growth.

The financial data presents several notable trends and variations over the analyzed periods.

Market Value Added (MVA)

The MVA experienced significant fluctuations. It increased substantially from 148,269 million USD in 2020 to a peak of 241,743 million USD in 2021. Following this, the MVA declined considerably to 161,662 million USD in 2022 and further to 151,996 million USD in 2023. A more marked decrease was observed in 2024, with MVA dropping to 93,898 million USD. However, in 2025, there was an extraordinary surge to 7,159,104 million USD, indicating a dramatic change in market valuation.

Invested Capital

Invested capital remained relatively stable across the period, with values fluctuating modestly between approximately 19,083 million USD and 22,129 million USD. The invested capital showed a slight upward trend from 2020 to 2024 but dipped again in 2025 to 19,883 million USD, returning near the initial levels.

MVA Spread Ratio

The MVA spread ratio mirrored the MVA trends while showing even more pronounced variation. It peaked in 2021 at approximately 1,149.95%, indicating exceptionally efficient value creation relative to invested capital that year. The ratio then declined steadily through 2022, 2023, and 2024, reaching 424.32%. In 2025, an extraordinary spike to 36,006.15% was observed. This extreme increase suggests a massive disproportional increase in market value added relative to invested capital during this last period.

Overall, the data suggests that while invested capital remained fairly constant, the market valuation and corresponding value creation metrics exhibited high volatility. This includes a remarkable surge in the latest period, which may reflect extraordinary factors impacting firm value or market perception.

Market Value Added (MVA)

The Market Value Added shows significant fluctuations over the periods analyzed. Starting from approximately 148.3 billion USD in 2020, the MVA surged to about 241.7 billion USD in 2021, indicating a substantial increase in market value creation. However, it subsequently declined to 161.7 billion USD in 2022 and further to around 152.0 billion USD in 2023. The downward trend continued, reaching 93.9 billion USD in 2024. Surprisingly, the data for 2025 shows an anomalously large increase to over 7.15 trillion USD, which is significantly higher than previous years and may warrant further verification or context for accurate interpretation.

Revenues

Revenues generally exhibited steady growth from 2020 through 2024, rising from 37.4 billion USD in 2020 to a peak of approximately 51.4 billion USD in 2024. This reflects a positive growth trajectory in sales over these years. However, in 2025, revenues declined to about 46.3 billion USD, indicating a downturn after several years of growth.

MVA Margin

The MVA margin, expressed as a percentage, demonstrates highly variable performance across the periods. Initially, it rose sharply from 396.4% in 2020 to 542.8% in 2021, followed by a notable decline to 346.1% in 2022 and continued decreases to 296.8% and 182.8% in 2023 and 2024, respectively. The extreme increase to over 15,459% in 2025 aligns with the extraordinarily high MVA figure reported for the same year, suggesting an abnormal or exceptional event influencing these metrics.

Overall Insights

The data indicates that while revenues generally increased up to 2024 before declining in 2025, the market value added and MVA margin experienced significant volatility. The exceptional values reported for 2025 are outliers compared to previous years, and may suggest either a drastic change in company valuation metrics or data irregularities. Apart from 2025, the trend analysis suggests a period of growth followed by gradual declines in market value creation relative to revenues, highlighting potential challenges in sustaining market value despite increasing revenues over the mid-term.