Analysis of Geographic Areas
Nike Inc. operates in 1 regions: and United States.
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Area Asset Turnover
Nike Inc., asset turnover by geographic area
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| United States |
Based on: 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), 10-K (reporting date: 2019-05-31).
The United States geographic area asset turnover ratio exhibits a fluctuating yet improving trend over the analyzed periods. Starting at a relatively high level of 5.07 in May 31, 2019, the ratio experienced a significant decline in the following year, dropping to 2.86 as of May 31, 2020. This decrease may indicate challenges in asset utilization efficiency during that period.
Subsequently, the ratio shows a consistent recovery trend. From May 31, 2020, to May 31, 2023, the asset turnover ratio increased from 2.86 to 4.29, suggesting enhanced operational efficiency or improved sales generation relative to the asset base. This upward trajectory continued into the latest measurement, reaching 4.46 by May 31, 2024.
Overall, despite the dip in 2020, the data indicates a positive progression in the ability to utilize assets effectively within the United States geographic segment, approaching the initial high efficiency level observed in 2019.
Area Asset Turnover: United States
Nike Inc.; United States; area asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Long-lived assets | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= ÷ =
- Revenue Trends
- Revenues in the United States showed an initial decline from 16,091 million US dollars in May 2019 to 14,625 million in May 2020. Subsequently, there was a steady increase, reaching a peak of 22,007 million in May 2023. In the most recent period, a slight decrease to 21,551 million was observed. Overall, the trend indicates recovery and growth after the dip experienced in 2020, likely influenced by external economic factors.
- Long-lived Assets
- The value of long-lived assets exhibited a significant increase from 3,174 million in May 2019 to 5,114 million in May 2020. After this sharp rise, the asset value stabilized with minor fluctuations, holding around the 4,900 to 5,100 million range until May 2023, before decreasing to 4,837 million in May 2024. This pattern suggests a major investment or revaluation occurred in 2020, followed by steady asset base maintenance.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures the efficiency of asset use in generating revenues, declined sharply from 5.07 in May 2019 to 2.86 in May 2020. This drop aligns with the decrease in revenues and increase in assets during that period, indicating reduced asset utilization efficiency. From 2021 onwards, the ratio consistently improved, climbing to 4.46 in May 2024. This improvement reflects enhanced asset management and recovery in revenue generation capabilities.
- Summary of Insights
- The data reveals a period of disruption beginning in 2020, characterized by decreased revenues and diminished asset turnover efficiency alongside a notable increase in long-lived assets. Over the following years, the company demonstrated resilience by growing revenues and enhancing the efficiency of asset use, albeit with a recent minor contraction in revenue and asset values. The trends suggest strategic adaptation after an initial setback, with a focus on optimizing asset performance in the United States market.
Revenues
Nike Inc., revenues by geographic area
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| United States |
Based on: 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), 10-K (reporting date: 2019-05-31).
- United States Revenue Trend
- The revenue generated from the United States demonstrates notable fluctuations over the six-year period analyzed. Beginning at 16,091 million US dollars in 2019, the revenue declined to 14,625 million in 2020. This decrease could indicate challenges faced during that specific fiscal year.
- In 2021, the revenue showed a strong rebound, increasing to 17,363 million and continuing an upward trajectory in 2022, reaching 18,749 million. This growth signifies a recovery phase and expansion in the market presence or sales volume within the United States.
- The upward trend intensified in 2023, with revenue climbing to 22,007 million, marking the highest value within the timeframe examined. However, in 2024, a slight decrease is observed, with revenue amounting to 21,551 million, which may suggest emerging market challenges, market saturation, or other external factors impacting sales dynamics.
- Overall, despite the initial 2020 decline and the minor dip in the latest year, the general direction over the period is growth-oriented, with revenues increasing by approximately 34% from 2019 to 2024.
Long-lived assets
Nike Inc., long-lived assets by geographic area
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| United States |
Based on: 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), 10-K (reporting date: 2019-05-31).
- United States Long-Lived Assets
-
The data reflects the value of long-lived assets in the United States over a six-year period. There is a significant increase between May 31, 2019, and May 31, 2020, where the asset value rose from 3,174 million USD to 5,114 million USD. This represents a considerable growth in assets within a single year.
Following this peak in 2020, the value slightly decreased to 4,927 million USD in 2021 and remained almost stable at 4,916 million USD in 2022, indicating a period of relative stabilization in asset values.
In 2023, a moderate increase occurred, with assets rising to 5,129 million USD, surpassing the 2020 value slightly. However, the most recent data from 2024 shows a decrease to 4,837 million USD, suggesting a reduction in long-lived assets compared to the previous year.
Overall, the trend shows initial sharp growth in 2020, followed by fluctuations around the 4,900 to 5,100 million USD range, with a recent downward movement in 2024. This pattern may indicate periods of investment and divestment or revaluation of assets within the United States segment.