Nike Inc. (NYSE:NKE) 

Total Asset Turnover

The reported total asset turnover ratio shows a generally stable pattern from 2020 to 2025, fluctuating slightly around 1.16 to 1.36 with a peak in 2023. The adjusted total asset turnover follows a similar trend but is consistently higher, reaching its highest point in 2023 at 1.44 before slightly declining in 2025.

Current Ratio

The reported current ratio indicates moderate fluctuations, with values peaking in 2021 and 2023 at 2.72, followed by a gradual decline to 2.21 in 2025. The adjusted current ratio mirrors this behavior closely, suggesting that liquidity remains relatively stable but decreases somewhat toward the end of the period.

Debt to Equity

The reported debt to equity ratio demonstrates a declining trend from 1.2 in 2020 to 0.6 in 2025, suggesting improved leverage or reduced reliance on debt financing. In contrast, the adjusted ratio declines more sharply initially but then shows a slight increase starting in 2023, culminating in 1.03 in 2025, indicating some variation depending on adjustments made.

Debt to Capital

The reported debt to capital ratio decreases from 0.55 in 2020 to approximately 0.38 from 2022 onwards, remaining consistent through 2025. The adjusted ratio shows a similar decline, stabilizing around 0.5 from 2023 to 2025, slightly higher than the reported figures, reflecting differing calculation approaches.

Financial Leverage

The reported financial leverage ratio declines steadily from 3.89 in 2020 to a low of 2.64 in 2024 but rises again slightly to 2.77 in 2025. Adjusted financial leverage follows the same downward trend but remains higher overall, ending at 3.17 in 2025. This indicates a reduction in leverage with some recent increase in adjusted terms.

Net Profit Margin

Reported net profit margin experiences substantial volatility, increasing sharply from 6.79% in 2020 to nearly 13% in 2022, then declining to 6.95% in 2025. Adjusted net profit margins show a similar pattern but consistently lower values, indicating that some adjustments reduce reported profitability.

Return on Equity (ROE)

The reported ROE peaks in 2021 at 44.86%, then gradually declines to 24.36% in 2025. Adjusted ROE exhibits a higher peak in 2022 at 44.21% and subsequently decreases to levels comparable to reported ROE by 2025. This pattern reflects a strong but decreasing equity return over the analyzed period.

Return on Assets (ROA)

Reported ROA increases significantly from 8.1% in 2020 to 15.17% in 2021, maintaining relatively high levels until 2024 before dropping to 8.8% in 2025. Adjusted ROA parallels this trend with slightly different magnitudes, peaking at 15.69% in 2022 and falling to 7.7% in 2025. The data indicates effective asset utilization initially with a reduction in profitability from assets by the end of the period.

The financial data indicates several notable trends in key performance metrics over the period analyzed.

Revenues

Revenues showed a steady upward trend from 2020 to 2024, growing from $37,403 million to a peak of $51,362 million. However, in 2025, revenues declined to $46,309 million, reversing the previous growth trend. This suggests a potential challenge or market shift impacting sales in the most recent year.

Total Assets

Total assets increased from $31,342 million in 2020 to $40,321 million in 2022, followed by a decline to $36,579 million in 2025. This fluctuation shows that asset base growth slowed and contracted slightly after 2022, which could reflect asset disposals, depreciation, or changes in investment strategy.

Reported Total Asset Turnover

The reported total asset turnover, a measure of how efficiently assets generate revenue, remained relatively stable around 1.19 to 1.18 from 2020 to 2021, then slightly decreased to 1.16 in 2022. It improved significantly to 1.36 in 2023 and was stable at 1.35 in 2024 before declining to 1.27 in 2025. The peak in 2023-2024 indicates heightened efficiency, which dropped somewhat in the subsequent year but remained above earlier levels.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, increasing from $30,824 million in 2020 to $38,464 million in 2022, and then declining steadily to $33,938 million in 2025. The adjusted measure reflects a decrease in asset base after 2022, reinforcing observations about reduced investment or asset base optimization.

Adjusted Total Asset Turnover

The adjusted total asset turnover remained constant at 1.21 from 2020 through 2022, then increased sharply to 1.44 in 2023 and 2024, before a modest decline to 1.36 in 2025. This suggests the company improved the productivity of its adjusted assets significantly during 2023-2024, though some reduction in turnover efficiency occurred in 2025.

Overall, the data highlights a period of growth in both revenues and assets until around 2022, followed by asset base reduction and a recent revenue decline in 2025. Despite these challenges, asset turnover ratios suggest that the company managed to improve the efficiency of both reported and adjusted assets notably in 2023 and 2024, though some weakening occurred in the latest year. This may indicate operational adjustments or market conditions impacting financial performance in 2025.

Current Assets

Current assets showed a general upward trend from May 31, 2020, through May 31, 2022, increasing from 20,556 million US dollars to 28,213 million US dollars. However, starting May 31, 2023, there was a decline in current assets, reducing to 23,362 million US dollars by May 31, 2025.

Current Liabilities

Current liabilities increased steadily from 8,284 million US dollars in May 2020 to a peak of 10,730 million US dollars in May 2022. Following that peak, liabilities dropped significantly to 9,256 million US dollars in May 2023 but then rose again, stabilizing around 10,566 million US dollars by May 2025.

Reported Current Ratio

The reported current ratio was relatively strong and stable, peaking at 2.72 in May 2021 and May 2023. Despite slight fluctuations, it maintained a level above 2.2 throughout the period. There was a gradual decline in the ratio from May 2023 onwards, dropping to 2.21 by May 2025, indicating a modest reduction in liquidity over the last two years.

Adjusted Current Assets

Adjusted current assets closely mirror the trend observed in current assets, starting at 20,770 million US dollars in 2020 and increasing to 28,247 million US dollars in 2022. Similar to current assets, a decline was seen from May 2023 onwards, ending at 23,389 million US dollars in May 2025.

Adjusted Current Ratio

The adjusted current ratio displays a pattern almost identical to the reported current ratio, with peaks at 2.73 in May 2021 and May 2023. It shows a declining trend post-2023, ending at 2.21, consistent with the reduction in adjusted current assets and the rebound in liabilities.

Total Debt

The total debt shows a general downward trend over the six-year period, decreasing from $9,657 million in May 2020 to $7,966 million in May 2025. There is a moderate decline with some fluctuations between years, indicating a gradual reduction in debt levels.

Shareholders’ Equity

Shareholders' equity increased significantly from $8,055 million in May 2020 to a peak of $15,281 million in May 2022. After this peak, equity declined somewhat, stabilizing around $13,213 million by May 2025. This suggests a period of strong equity growth followed by a moderate contraction or consolidation phase.

Reported Debt to Equity Ratio

The reported debt to equity ratio exhibits a clear decreasing trend from 1.2 in May 2020 to 0.6 in May 2025. This decline indicates improved financial leverage with the company holding less debt relative to equity over time, reflecting stronger equity growth and/or debt reduction.

Adjusted Total Debt

The adjusted total debt follows a pattern similar to the reported total debt but at higher absolute values. It decreases from $13,015 million in May 2020 to $11,018 million in May 2025. The reduction is steady, showing consistent management of adjusted liabilities.

Adjusted Shareholders’ Equity

The adjusted shareholders’ equity increases markedly from $7,537 million in May 2020 to $13,650 million in May 2022. After which, it declines slightly to $10,698 million by May 2025. This trend reflects the reported equity pattern but at adjusted values, suggesting underlying asset changes or revaluations influencing equity.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declines substantially from 1.73 in May 2020 to near parity at 0.93 in May 2022. Subsequently, it increases marginally, fluctuating around 1.0 with a value of 1.03 in May 2025. This indicates a move toward balanced leverage but with a slight tendency toward higher adjusted debt relative to equity in the last years.

Total Debt

The total debt shows a gradual decline over the observed periods. Starting at 9,657 million US dollars in 2020, it decreased to 7,966 million US dollars by 2025. This indicates a consistent effort to reduce nominal debt levels over time.

Total Capital

Total capital exhibited an increasing trend from 17,712 million US dollars in 2020 to a peak of 24,711 million US dollars in 2022, followed by a moderate decline to 21,179 million US dollars by 2025. This suggests some fluctuations in overall capital structure, with a significant increase followed by stabilization at a lower level than the peak.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreased significantly from 0.55 in 2020 to around 0.38 by 2022 and remained relatively stable through 2025. This reflects an improvement in the leverage position when measured by reported metrics, with a lower proportion of debt relative to total capital.

Adjusted Total Debt

Adjusted total debt, which likely includes additional liabilities or off-balance-sheet items, decreased from 13,015 million US dollars in 2020 to 11,018 million US dollars in 2025. Similar to total debt, this trend confirms a reduction in overall indebtedness when considering a broader definition of debt.

Adjusted Total Capital

Adjusted total capital increased from 20,552 million US dollars in 2020 to a high of 26,277 million US dollars in 2022, then declined to 21,716 million US dollars in 2025. The pattern mirrors that of total capital and suggests changes in the company’s capital base affecting the adjusted figures as well.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio fell from 0.63 in 2020 to 0.48 in 2022, then gradually increased to approximately 0.51 by 2025. Although lower than the initial value, this slight uptick after 2022 indicates a modest rise in leverage using the adjusted figures, contrasting the more stable trend in the reported ratio.

Total Assets

Total assets exhibited an overall increasing trend from May 2020 to May 2022, rising from $31,342 million to $40,321 million. However, after reaching this peak, total assets declined in the subsequent years, decreasing to $36,579 million by May 2025. This pattern indicates growth in assets during the early period followed by a contraction in recent years.

Shareholders’ Equity

Shareholders’ equity showed significant growth from May 2020 ($8,055 million) to May 2022 ($15,281 million), reflecting increased net worth. Post-2022, equity slightly decreased to $13,213 million by May 2025, suggesting some capital erosion. Despite the decline, equity levels remain above the 2020 baseline.

Reported Financial Leverage

The reported financial leverage ratio decreased markedly from 3.89 in May 2020 to around 2.64-2.68 between 2022 and 2024, indicating reduced reliance on debt relative to equity during that period. There was a slight uptick to 2.77 in May 2025, pointing to a modest increase in leverage after several years of stability.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, increasing from $30,824 million in 2020 to a high of $38,464 million in 2022, followed by a decline to $33,938 million by 2025. This adjustment confirms the pattern of asset growth followed by subsequent contraction and suggests adjustments had a consistent impact.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity rose steadily from $7,537 million in 2020 to $13,650 million in 2022 but then declined gradually to $10,698 million by 2025. This reflects a similar pattern to the reported equity, with growth early on and a moderate decline in recent years.

Adjusted Financial Leverage

Adjusted financial leverage initially decreased from 4.09 in 2020 to 2.82 in 2022, indicating deleveraging. However, unlike the reported leverage, adjusted leverage increased continuously afterward, reaching 3.17 by 2025. This suggests that when adjustments are taken into account, leverage has increased more in the recent period than the reported figures indicate.

Revenue Trends

Revenues have generally increased from 2020 to 2024, starting at $37,403 million in 2020 and reaching a peak of $51,362 million in 2024. However, there is a notable decline in 2025 to $46,309 million, indicating a possible setback after years of growth.

Net Income Trends

Net income demonstrated strong growth between 2020 and 2022, rising from $2,539 million to $6,046 million. This was followed by a decline to $5,070 million in 2023, a partial rebound to $5,700 million in 2024, and a significant drop to $3,219 million in 2025. The volatility observed in the recent two years suggests increased challenges impacting profitability.

Reported Net Profit Margin Analysis

The reported net profit margin increased substantially from 6.79% in 2020 to a high of 12.94% in 2022, reflecting improved profitability relative to revenues. Margins then declined to 9.9% in 2023, followed by a slight recovery to 11.1% in 2024, and a marked decrease to 6.95% in 2025, mirroring the net income trend and indicating a reduction in operational efficiency or higher costs.

Adjusted Net Income and Margin

Adjusted net income, which excludes certain irregular items, follows a pattern similar to that of net income, increasing robustly through 2022 with $6,035 million and falling significantly by 2025 to $2,612 million. The adjusted net profit margin increased from 5.5% in 2020 to 12.92% in 2022 before declining steadily to 5.64% in 2025. The downward trajectory in margins and adjusted income suggests ongoing pressure on core profitability.

Overall Insights

From 2020 to 2022, there was clear growth and improving profitability as evidenced by rising revenues, net income, and profit margins. Starting in 2023, negative trends emerged with fluctuating net income and profit margins alongside a revenue decline in 2025. This pattern may indicate increasing cost pressures, market challenges, or other operational difficulties affecting the company’s financial performance in the most recent years. The alignment of both reported and adjusted metrics points to fundamental issues rather than isolated accounting adjustments.

Net Income

Net income demonstrated a significant increase from 2,539 million US dollars in 2020 to a peak of 6,046 million in 2022. Following this peak, net income declined notably to 3,219 million by 2025, indicating a downward trend in the most recent years after robust growth in the earlier periods.

Shareholders’ Equity

Shareholders’ equity showed a consistent upward trajectory from 8,055 million US dollars in 2020, reaching a high of 15,281 million in 2022. Thereafter, it experienced a slight decline but generally maintained a stable range around 13,213 million by 2025, suggesting some consolidation after rapid growth.

Reported Return on Equity (ROE)

The reported ROE increased sharply from 31.52% in 2020 to a peak of 44.86% in 2021. This was followed by a gradual decline, settling at 24.36% in 2025. This pattern reflects initially strong profitability relative to equity, followed by a significant reduction in returns in recent years.

Adjusted Net Income

Adjusted net income followed a similar trend to net income, starting at 2,056 million in 2020 and peaking at 6,035 million in 2022. There was a decrease afterward, reaching 2,612 million by 2025, indicating challenges impacting adjusted profitability in the latter periods.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity rose steadily from 7,537 million in 2020 to 13,650 million in 2022. Subsequently, it slightly decreased and stabilized to 10,698 million by 2025, which parallels the trend observed in reported shareholders' equity.

Adjusted Return on Equity (ROE)

Adjusted ROE exhibited strong growth from 27.28% in 2020 to a peak of 44.21% in 2022. However, similar to the reported ROE, it declined to 24.42% by 2025. This decline underscores a decrease in effective profitability when adjusted for specific items over the recent years.

The financial data reveals several noteworthy trends over the six-year period. Net income demonstrates a general upward trajectory from 2020 to 2022, peaking at 6,046 million USD in 2022. However, subsequent years show a decline, with net income dropping to 3,219 million USD by 2025. Total assets exhibit growth initially, rising steadily from 31,342 million USD in 2020 to a peak of 40,321 million USD in 2022, followed by a gradual decline to 36,579 million USD by 2025.

The reported Return on Assets (ROA) mirrors some of these trends, increasing sharply from 8.1% in 2020 to approximately 15% in 2021 and 2022. This indicates improved efficiency in asset utilization during this period. Post-2022, reported ROA decreases to 8.8% by 2025, signaling reduced profitability relative to asset base. Adjusted net income aligns closely with the reported net income, showing an increase up to 2022 and then a decline through 2025. Adjusted total assets follow a similar pattern, peaking in 2022 before trending downward.

Adjusted ROA increases from 6.67% in 2020 to a high of 15.69% in 2022, reflecting enhanced operational performance, then declines to 7.7% by 2025. The difference between reported and adjusted ROA values remains consistent, with adjusted metrics generally lower, suggesting certain adjustments reduce the effective return measure. Overall, the financial profile depicts an era of growth and improving returns through 2022, followed by a period of contraction and diminished asset efficiency and profitability through 2025.

Net Income

Increased significantly from 2020 through 2022, followed by a decline through 2025.

Total Assets

Grew steadily until 2022, then gradually decreased by 2025.

Reported ROA

Improved sharply by 2021 and remained high through 2022, with a notable decrease from 2023 onward.

Adjusted Net Income

Tracked reported net income closely, with growth through 2022 and subsequent decline.

Adjusted Total Assets

Followed a similar pattern to total assets, peaking in 2022 and decreasing thereafter.

Adjusted ROA

Peaked at a higher level than reported ROA in 2022, then declined along the same trend as reported ROA.