Nike Inc. (NYSE:NKE)

Total Asset Turnover

The reported total asset turnover ratio declined significantly from 1.65 in 2019 to around 1.16-1.18 in the 2020-2022 period, indicating reduced efficiency in using assets to generate sales. Recovery is observed in 2023 and 2024, with ratios rising to 1.36 and 1.35 respectively. The adjusted ratio follows a similar pattern but displays slightly lower starting values and a stronger recovery post-2022, reaching 1.43 by 2023 and maintaining that level in 2024.

Current Ratio

The current ratio presents an overall upward trend from 2.1 in 2019 to approximately 2.72 in 2021 and 2023, suggesting improving short-term liquidity. However, there is a slight decrease to 2.4 in 2024. The adjusted current ratio values closely mirror the reported data, reinforcing the observation of strong liquidity positions over the assessed period with a moderation toward the end.

Debt to Equity

Reported debt to equity exhibited volatility, peaking sharply at 1.2 in 2020 before declining to a more moderate range near 0.62-0.64 in subsequent years. Adjusted figures display a similar pattern with even higher peaks and variations (1.73 in 2020), indicating periods of heavier leverage followed by deleveraging efforts and stabilization around 0.98 by 2024.

Debt to Capital

This metric has generally increased from 0.28 in 2019 to approximately 0.38-0.50 in later years, marking a gradual rise in overall leverage levels relative to capital structure. The adjusted debt to capital values remain consistently higher than reported ratios, suggesting adjustments account for additional liabilities or financial arrangements increasing the apparent leverage.

Financial Leverage

Financial leverage ratios peaked sharply in 2020, with reported leverage at 3.89 and adjusted at 4.09, before declining steadily toward 2.64-2.95 in 2024. This pattern reflects a response to increased borrowing or equity reduction in 2020, followed by a measured reduction in leverage moving forward.

Net Profit Margin

The reported net profit margin showed a dip to 6.79% in 2020, followed by a strong rebound to 12.86-12.94% in 2021-2022, indicating improved profitability during this period. Margins then declined to around 9.9-11.1% in 2023-2024. Adjusted margins follow a similar course but generally report lower profitability percentages, especially marked by a sharper drop in 2020 (5.5%) and an overall more conservative profitability estimate.

Return on Equity (ROE)

ROE declined from a high of 44.57% in 2019 to a low of 31.52% in 2020, recovering variably to around 36.2%-44.86% through 2024. Adjusted ROE values are generally lower but follow the same trend, indicating capacity to generate shareholder returns diminished during 2020 but improved thereafter with some fluctuations.

Return on Assets (ROA)

ROA experienced a decrease from 16.99% in 2019 to 8.1% in 2020, reflecting a pronounced reduction in operational efficiency or profitability relative to asset base. Recovery ensued in subsequent years with ROA reaching approximately 13.51%-15.17%. Adjusted ROA follows similar trends but indicates more conservative returns, especially during 2020, with a gradual improvement through 2024.

The financial data exhibits several key trends over the analyzed periods. Revenues demonstrate a general upward trajectory, increasing from 39,117 million US dollars in May 2019 to 51,362 million US dollars by May 2024. Notably, there is a dip observed in May 2020 compared to 2019, followed by consistent growth each year thereafter.

Total assets display a different pattern, increasing significantly from 23,717 million US dollars in 2019 to a peak of 40,321 million US dollars in 2022. Subsequently, total assets decrease in 2023 and remain relatively stable through 2024, settling near 38,110 million US dollars.

The reported total asset turnover ratio shows a decline from 1.65 in 2019 to approximately 1.16-1.18 range during 2020 to 2022. This ratio then improves in the last two years, reaching around 1.35 by 2024, indicating enhanced efficiency in using total assets to generate revenue toward the end of the period.

Adjusted total assets follow a trend similar to total assets but with slightly different values. After rising from 26,605 million US dollars in 2019 to 38,690 million in 2022, adjusted total assets drop to just above 35,800 million US dollars by 2024.

Adjusted total asset turnover ratio remains stable between 1.21 and 1.47 throughout the years, with a decrease after 2019, stabilization from 2020 to 2022, and an improvement to 1.43 in 2023 and 2024. This pattern suggests that, when considering adjusted assets, the company's asset utilization efficiency dipped during the early years but has recently strengthened.

Overall, the data indicates resilient revenue growth despite fluctuations in asset levels and turnover ratios. The improvements in asset turnover rates in the latest years imply a recovery in efficiency, balancing the impact of asset adjustments and variations in total asset values.

Current Assets

Current assets demonstrate a generally increasing trend from 2019 to 2022, peaking at $28,213 million. However, a decline occurs in 2023, with values dropping to $25,202 million, followed by a slight recovery in 2024 to $25,382 million.

Current Liabilities

Current liabilities show a gradual increase from $7,866 million in 2019 to $10,730 million in 2022, indicating growing short-term obligations. In 2023, liabilities decrease to $9,256 million but rise again to $10,593 million in 2024.

Reported Current Ratio

The reported current ratio improves steadily from 2.1 in 2019 to a high of 2.72 in 2021. It slightly decreases to 2.63 in 2022, rebounds to 2.72 in 2023, and then declines to 2.4 in 2024. This ratio suggests generally strong liquidity with some fluctuations in recent years.

Adjusted Current Assets

Adjusted current assets closely follow the pattern of current assets, increasing yearly until 2022 and then declining in 2023 before a modest increase in 2024. These figures parallel the movements seen in current assets, suggesting limited impact from the adjustments made.

Adjusted Current Ratio

The adjusted current ratio mirrors the reported current ratio trends with slight variations, peaking in 2021 and 2023 at 2.73 before falling to 2.4 in 2024. This consistency with the reported ratio reinforces the observation of generally stable but slightly declining liquidity in the most recent year.

Overall Analysis

The data reveals a pattern of growth in liquidity and current asset levels through 2021 and 2022, followed by a reversal marked by reductions in assets and fluctuating liabilities in 2023 and 2024. The current ratios, both reported and adjusted, indicate the company's ability to cover short-term liabilities remains sound, though the declining trend in 2024 could warrant further attention. The slight divergence in liabilities between 2023 and 2024, coupled with the asset decrease, highlights a shifting balance in working capital management.

The data reveals several significant trends regarding the company’s financial leverage and equity structure over the examined period.

Total Debt

Total debt experienced a sharp increase from 2019 to 2020, rising from $3,479 million to $9,657 million. After this peak, total debt stabilized in the following years, slightly decreasing to $8,909 million by 2024.

Shareholders’ Equity

Shareholders’ equity showed a decline between 2019 and 2020, decreasing from $9,040 million to $8,055 million. Subsequently, equity increased substantially, reaching a peak of $15,281 million in 2022 before a moderate decline to $14,430 million in 2024.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased markedly from 0.38 in 2019 to 1.20 in 2020, indicating a significant rise in leverage. Following this spike, the ratio improved steadily, decreasing to around 0.62 by 2024, reflecting a reduction in leverage relative to equity.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to total debt but with higher absolute values, rising from $6,713 million in 2019 to $13,015 million in 2020. Afterward, it gradually declined to $11,952 million by 2024, indicating a controlled reduction in adjusted liabilities.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity also declined in 2020, from $8,694 million to $7,537 million, followed by a recovery and growth to $13,650 million in 2022. After this peak, it decreased somewhat to $12,145 million in 2024, suggesting some fluctuation in adjusted equity values.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio reflected an increased leverage position in 2020, rising to 1.73 from 0.77 in 2019. Subsequently, it decreased gradually to just below 1.0 in 2023 and 2024, indicating a trend towards moderate leverage.

In summary, the company exhibited a significant increase in debt levels and leverage ratios during 2020, likely due to external or strategic factors requiring increased borrowing. Following this period, there is a clear trend of stabilization and gradual deleveraging, both in reported and adjusted financial metrics, accompanied by growth and subsequent stabilization in equity levels. These patterns suggest a response to elevated leverage through efforts to strengthen equity and reduce debt over time.

The analysis of the annual financial data reveals several notable trends regarding the company's capital structure and debt levels over the examined period.

Total Debt

The total debt experienced a significant increase from 2019 to 2020, rising from 3,479 million USD to 9,657 million USD. This elevated debt level remained relatively stable in subsequent years, fluctuating slightly around the 9,000 million USD mark through to 2024.

Total Capital

Total capital consistently increased from 12,519 million USD in 2019 to a peak of 24,711 million USD in 2022. Following this peak, a slight decline was observed in 2023 to 22,937 million USD, with a marginal increase again in 2024 to 23,339 million USD.

Reported Debt to Capital Ratio

The reported debt to capital ratio doubled from 0.28 in 2019 to 0.55 in 2020, indicating a considerable increase in leverage. After this peak, the ratio decreased steadily to around 0.38-0.39 in the years 2022 through 2024, suggesting a gradual deleveraging or improved balance between debt and capital.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to total debt, rising sharply from 6,713 million USD in 2019 to 13,015 million USD in 2020. Subsequently, it decreased progressively each year to 11,952 million USD by 2024, indicating a more conservative debt level when considering adjustments.

Adjusted Total Capital

Adjusted total capital increased significantly from 15,407 million USD in 2019 to a high of 26,277 million USD in 2022, before decreasing to 24,097 million USD in 2024. This trend largely mirrors the movements observed in total capital, though on a higher scale due to adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased from 0.44 in 2019 to a peak of 0.63 in 2020, reflecting a higher reliance on debt relative to adjusted capital during that year. From 2021 onward, the ratio declined to stabilize around 0.5, suggesting a partial reduction of leverage relative to adjusted capital levels but indicating sustained moderate leverage compared to the initial period.

Overall, the data indicates that the company underwent a substantial increase in debt and leverage around 2020, likely reflecting changes in financing strategy or capital needs. Following this period, there is evidence of stabilization and moderate deleveraging, with both reported and adjusted ratios trending downward yet remaining above pre-2020 levels. The increase in total and adjusted capital alongside fluctuating debt levels suggests active capital management efforts to balance growth and financial risk.

Total Assets

Total assets exhibited significant growth from 2019 to 2022, rising from approximately 23.7 billion USD to just over 40.3 billion USD. However, a decline is observed in 2023 to about 37.5 billion USD, followed by a slight increase reaching 38.1 billion USD in 2024.

Shareholders’ Equity

Shareholders’ equity showed a decrease from 9 billion USD in 2019 to around 8 billion USD in 2020. It then surged to nearly 12.8 billion USD in 2021 and continued an upward trend peaking at approximately 15.3 billion USD in 2022. This was followed by a downturn in 2023 to about 14 billion USD and a modest recovery to around 14.4 billion USD in 2024.

Reported Financial Leverage

The reported financial leverage ratio increased sharply from 2.62 in 2019 to 3.89 in 2020, indicating greater reliance on debt relative to equity. Subsequently, it decreased steadily over the following years to 2.64 by 2024, suggesting a gradual reduction in leverage and a more conservative capital structure.

Adjusted Total Assets

Adjusted total assets followed a pattern similar to total assets, growing from 26.6 billion USD in 2019 to a peak near 38.7 billion USD in 2022, then declining to 35.8 billion USD by 2024. The adjusted figures are generally higher than the reported totals in most years, indicating the effect of adjustments on asset valuation.

Adjusted Shareholders’ Equity

Adjusted shareholders' equity mirrored the trend in reported equity, declining from 8.7 billion USD in 2019 to 7.5 billion USD in 2020 before increasing to 11.7 billion USD in 2021 and 13.7 billion USD in 2022. A decrease followed in 2023, ending at 12.1 billion USD in 2024. The adjustments consistently show lower equity figures than reported values from 2021 onward.

Adjusted Financial Leverage

Adjusted financial leverage peaked at 4.09 in 2020, higher than the reported value for the same year, signaling increased leverage after adjustments. It declined thereafter to 2.83 in 2022 but experienced a slight rise in 2023 and 2024, settling around 2.95 by the last period. This indicates a modest increase in leverage adjusted for valuation or accounting changes in the most recent years.

Net Income

Net income experienced a significant decline from 4029 million USD in 2019 to 2539 million USD in 2020. Subsequently, it recovered strongly to 5727 million USD in 2021 and remained elevated through 2024, with figures fluctuating between 5070 million USD and 6046 million USD. The data indicates a notable dip in 2020 likely influenced by external factors, followed by a recovery and stabilization at higher profit levels.

Revenues

Revenues showed a decreasing trend from 39117 million USD in 2019 to 37403 million USD in 2020. From that point onward, revenues increased steadily each year, reaching 51362 million USD in 2024. The upward trend post-2020 suggests successful growth strategies or market recovery contributing to rising sales volumes or pricing.

Reported Net Profit Margin

The reported net profit margin mirrored the net income pattern, declining sharply from 10.3% in 2019 to 6.79% in 2020. It then improved substantially to a peak of 12.94% in 2022 before declining to 9.9% in 2023 and slightly increasing again to 11.1% in 2024. This reflects fluctuations in cost control and profitability relative to revenue during this period.

Adjusted Net Income

Adjusted net income declined even more sharply from 4386 million USD in 2019 to 2056 million USD in 2020. It subsequently increased to 4897 million USD in 2021 and maintained a generally stable range around 4867 million USD to 6035 million USD through 2024. The pattern is consistent with net income trends but shows a smaller recovery in later years, possibly due to non-recurring adjustments.

Adjusted Net Profit Margin

Adjusted net profit margin showed a similar but slightly more pronounced decline than the reported margin, dropping from 11.21% in 2019 to 5.5% in 2020. It rebounded to 11% in 2021 and peaked at 12.92% in 2022 before declining to below 10% in the subsequent two years. This indicates variability in adjusted profitability and highlights periods of margin contraction during challenging years.

The financial data exhibits notable fluctuations in profitability and equity over the six-year period under review. Net income experienced a significant decline from 2019 to 2020, dropping from 4,029 million USD to 2,539 million USD, which likely reflects challenging market conditions during that time. However, a strong recovery followed, with net income reaching its peak at 6,046 million USD in 2022 before slightly decreasing to 5,070 million USD in 2023 and then increasing again to 5,700 million USD in 2024.

Shareholders’ equity shows a general upward trend across the period, with a dip in 2020 followed by consistent growth until 2022. After reaching 15,281 million USD in 2022, equity decreased to 14,004 million USD in 2023 and then marginally increased to 14,430 million USD in 2024. This pattern suggests both accumulation of retained earnings and possible equity adjustments within the timeframe.

Examining the reported Return on Equity (ROE), there is an evident contraction in 2020 in line with the dip in net income, falling from 44.57% in 2019 to 31.52%. Subsequently, ROE rebounded to 44.86% in 2021, then declined to 36.2% in 2023 before improving to 39.5% in 2024. This indicates volatility in the company’s efficiency in generating returns from its equity base.

Adjusted net income follows a similar trajectory to reported net income, showing a sharp fall in 2020 from 4,386 million USD to 2,056 million USD, with recovery thereafter. Although the adjusted net income did not return to the 2019 level by 2024, it demonstrated relative stability in the later years, with figures hovering around 4,800 to 5,000 million USD.

The adjusted shareholders’ equity also declines in 2020, from 8,694 million USD to 7,537 million USD, then shows growth until 2022 reaching 13,650 million USD, before decreasing gradually to 12,145 million USD in 2024. The movement suggests adjustments affecting equity beyond the reported figures but retaining a similar overall trend.

Adjusted ROE mirrors the reported ROE trend but indicates slightly lower returns in some years. It falls steeply in 2020 to 27.28% and recovers to peak at 44.21% in 2022. The subsequent decrease to around 39.76% in 2023 followed by a modest rise to 41.38% in 2024 implies improved but still somewhat volatile performance in terms of adjusted profitability.

Overall, the data illustrates an initial disruption in financial performance around 2020, followed by recovery and growth with some inconsistencies. Both net income and shareholders’ equity demonstrate expansion post-2020, albeit with periodic declines. The ROE metrics indicate fluctuations in profitability relative to equity but remain robust overall, suggesting the company's ability to maintain efficient use of shareholders’ funds throughout varying economic conditions.

Net Income

Net income exhibited substantial fluctuation over the observed period. It declined sharply from 4,029 million in May 2019 to 2,539 million in May 2020, likely indicating a challenging year. This was followed by a strong recovery in May 2021, reaching 5,727 million, and a further increase to 6,046 million in May 2022. Subsequently, net income declined to 5,070 million in May 2023 but rebounded to 5,700 million in May 2024.

Total Assets

Total assets showed a consistent upward trend from 23,717 million in May 2019 to a peak of 40,321 million in May 2022. After this peak, there was a decrease to 37,531 million in May 2023, followed by a slight increase to 38,110 million in May 2024. This pattern suggests asset expansion followed by modest consolidation.

Reported Return on Assets (ROA)

The reported ROA showed significant variability. It decreased from 16.99% in May 2019 to 8.1% in May 2020, consistent with the net income decline, then recovered to 15.17% in May 2021. This was followed by relative stability in 2022 and 2023 at approximately 14-15%, with a slight drop to 13.51% in May 2023 and a recovery to 14.96% in May 2024.

Adjusted Net Income

Adjusted net income followed a similar trend to reported net income but with somewhat lower volatility. There was a decline from 4,386 million in May 2019 to 2,056 million in May 2020, then a recovery to 4,897 million in May 2021. It increased further to 6,035 million in May 2022 but decreased to 4,867 million in May 2023 and modestly rose to 5,025 million in May 2024.

Adjusted Total Assets

Adjusted total assets increased steadily from 26,605 million in May 2019 to 38,690 million in May 2022, then decreased to 35,767 million in May 2023, followed by a minor decline to 35,825 million in May 2024. The adjusted asset figures closely mirror the trends seen in total assets, reflecting consistent asset management after adjustments.

Adjusted Return on Assets (ROA)

The adjusted ROA declined from 16.49% in May 2019 to 6.67% in May 2020, indicating a significant reduction in asset profitability during that period. It then improved to 13.34% in May 2021 and peaked at 15.6% in May 2022. Afterward, it decreased slightly to 13.61% in May 2023 and showed a small recovery to 14.03% in May 2024. This pattern suggests a strong rebound in asset efficiency post-2020 with some fluctuations thereafter.