Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Nike Inc., solvency ratios
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
The solvency profile demonstrates a consistent trend of deleveraging and an improvement in long-term financial stability over the analyzed period. A general reduction in debt-related ratios indicates a strategic shift toward a more equity-heavy capital structure and a decrease in overall financial risk.
- Debt Leverage Ratios
- The debt-to-equity ratio shows a steady decline from 0.74 in May 2021 to 0.53 by May 2026. When operating lease liabilities are included, the ratio follows a similar trajectory, decreasing from 1.00 to 0.74. This suggests a reduction in the reliance on borrowed funds relative to shareholder equity.
- Debt-to-capital and debt-to-assets ratios exhibit a parallel downward trend. The debt-to-capital ratio moved from 0.42 to 0.35, while the debt-to-assets ratio declined from 0.25 to 0.21. These movements confirm that debt constitutes a smaller proportion of the total asset base and capital structure over time.
- Financial Leverage and Asset Utilization
- Financial leverage experienced some volatility, starting at 2.96 in May 2021 and ending at 2.58 in May 2026. While there was a temporary spike to 2.77 in May 2025, the overall trend indicates a reduction in the use of debt to amplify asset returns.
- Debt Servicing Capacity
- Interest coverage remained robust for the first four years, peaking at 25.91 in May 2024, before experiencing a sharp decline to 14.08 in May 2025. A partial recovery to 18.11 is observed by May 2026, indicating that while the margin of safety for interest payments narrowed significantly in 2025, the capacity to service debt remains strong.
- The fixed charge coverage ratio reflects a similar pattern, maintaining a range between 8.08 and 8.55 from 2021 to 2024, followed by a significant drop to 5.05 in May 2025 and remaining relatively flat at 5.23 in May 2026. This suggests an increase in fixed obligations or a decrease in operating cash flow relative to those charges starting in 2025.
In summary, the organization has successfully reduced its debt burden across all primary solvency metrics. However, the notable contraction in coverage ratios during the 2025-2026 period indicates a recent tightening of the cushion available to meet fixed financial obligations, despite the overall reduction in total leverage.
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Debt Ratios
Coverage Ratios
Debt to Equity
Nike Inc., debt to equity calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.53 | 0.60 | 0.62 | 0.64 | 0.62 | 0.74 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Debt to Equity, Sector | |||||||
| Consumer Durables & Apparel | — | 0.45 | 0.48 | 0.52 | 0.52 | 0.61 | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | — | 0.92 | 1.10 | 1.34 | 1.51 | 1.50 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 7,942 ÷ 14,865 = 0.53
2 Click competitor name to see calculations.
An examination of the solvency metrics from May 31, 2021, to May 31, 2026, reveals a consistent improvement in the organization's leverage position. The overall trajectory is characterized by a systematic reduction in total liabilities relative to equity, indicating a shift toward a more conservative capital structure over the six-year period.
- Total Debt Trends
- Total debt remained relatively stable between 2021 and 2022 at approximately US$ 9.4 billion before entering a gradual decline. A more pronounced reduction is observed between 2024 and 2025, with debt decreasing from US$ 8,903 million to US$ 7,961 million. By May 31, 2026, total debt reached US$ 7,942 million, representing a total decrease of approximately 15.6% from the 2021 baseline.
- Shareholders' Equity Fluctuations
- Shareholders' equity exhibited periodic volatility, peaking in 2022 at US$ 15,281 million before experiencing a decline to US$ 13,213 million by 2025. However, a recovery occurred by May 31, 2026, with equity rising to US$ 14,865 million. Despite the interim fluctuations, equity ended the period higher than the initial 2021 value of US$ 12,767 million.
- Debt to Equity Ratio Analysis
- The debt to equity ratio demonstrates a clear downward trend, moving from 0.74 in 2021 to 0.53 in 2026. A significant initial drop occurred between 2021 and 2022, where the ratio decreased from 0.74 to 0.62. The subsequent descent to 0.53 indicates an enhanced solvency profile, as the reliance on external debt financing has diminished in proportion to the company's equity base.
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Debt to Equity (including Operating Lease Liability)
Nike Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Current portion of operating lease liabilities | 478) | 502) | 477) | 425) | 420) | 467) | |
| Operating lease liabilities, excluding current portion | 2,613) | 2,550) | 2,566) | 2,786) | 2,777) | 2,931) | |
| Total debt (including operating lease liability) | 11,033) | 11,013) | 11,946) | 12,138) | 12,617) | 12,811) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.74 | 0.83 | 0.83 | 0.87 | 0.83 | 1.00 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| lululemon athletica inc. | 0.36 | 0.36 | 0.33 | 0.34 | 0.32 | 0.31 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Durables & Apparel | — | 0.72 | 0.72 | 0.77 | 0.75 | 0.89 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 1.17 | 1.39 | 1.69 | 1.90 | 1.87 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 11,033 ÷ 14,865 = 0.74
2 Click competitor name to see calculations.
The solvency profile exhibits a general trend toward deleveraging and a strengthened capital structure between May 2021 and May 2026. The overall reduction in total debt, combined with fluctuations in shareholders' equity, has resulted in a consistent decrease in the debt-to-equity ratio, indicating a reduction in financial leverage and an improved solvency position over the observed period.
- Total Debt (Including Operating Lease Liability)
- A sustained downward trajectory is observed in total debt obligations. From a peak of US$ 12,811 million in May 2021, liabilities declined steadily to US$ 11,013 million by May 2025, before stabilizing at US$ 11,033 million in May 2026. This represents an overall reduction of approximately 13.9% over the six-year period, reflecting a consistent effort to reduce total liabilities.
- Shareholders' Equity
- The equity base has experienced notable volatility. After an initial increase to US$ 15,281 million in May 2022, the balance fluctuated, declining to US$ 14,004 million in 2023 and reaching a period low of US$ 13,213 million in May 2025. However, a significant recovery to US$ 14,865 million by May 2026 indicates a strengthening of the internal capital base toward the end of the period.
- Debt to Equity Ratio
- The debt to equity ratio decreased from 1.00 in May 2021 to 0.74 by May 2026. A sharp improvement occurred between 2021 and 2022, where the ratio fell to 0.83. Following a period of relative stability between 2022 and 2025, where the ratio remained between 0.83 and 0.87, it reached its minimum value in May 2026. This progression signifies a transition toward a more conservative financing mix and a reduced reliance on borrowed funds relative to equity.
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Debt to Capital
Nike Inc., debt to capital calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Total capital | 22,807) | 21,174) | 23,333) | 22,931) | 24,701) | 22,180) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.35 | 0.38 | 0.38 | 0.39 | 0.38 | 0.42 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Debt to Capital, Sector | |||||||
| Consumer Durables & Apparel | — | 0.31 | 0.32 | 0.34 | 0.34 | 0.38 | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | — | 0.48 | 0.52 | 0.57 | 0.60 | 0.60 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,942 ÷ 22,807 = 0.35
2 Click competitor name to see calculations.
An analysis of solvency metrics reveals a general improvement in the financial leverage profile between May 31, 2021, and May 31, 2026. The overarching trend is characterized by a consistent reduction in total debt and a corresponding decline in the debt-to-capital ratio, indicating a strategic movement toward a more conservative capital structure.
- Debt to Capital Ratio Trend
- The debt to capital ratio decreased from 0.42 in 2021 to 0.35 by 2026. Following an initial decline to 0.38 in 2022, the ratio remained relatively stable, fluctuating marginally between 0.38 and 0.39 until 2025, before reaching its lowest point in 2026. This progression demonstrates a reduced reliance on borrowed funds relative to the total capital base.
- Total Debt Trajectory
- Total debt levels peaked in May 2022 at 9,420 million US$ before entering a period of sustained decline. A notable reduction is observed between 2024 and 2025, where debt decreased from 8,903 million US$ to 7,961 million US$. By May 31, 2026, total debt reached a period low of 7,942 million US$, representing a significant decrease from the 2021 starting point.
- Total Capital Dynamics
- Total capital exhibited fluctuations throughout the period, peaking at 24,701 million US$ in 2022 and dipping to 21,174 million US$ in 2025. Despite these variances in total capital, the continued reduction in total debt ensured that the debt to capital ratio maintained a downward trajectory, suggesting that capital adjustments were not fueled by increased leverage.
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Debt to Capital (including Operating Lease Liability)
Nike Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Current portion of operating lease liabilities | 478) | 502) | 477) | 425) | 420) | 467) | |
| Operating lease liabilities, excluding current portion | 2,613) | 2,550) | 2,566) | 2,786) | 2,777) | 2,931) | |
| Total debt (including operating lease liability) | 11,033) | 11,013) | 11,946) | 12,138) | 12,617) | 12,811) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Total capital (including operating lease liability) | 25,898) | 24,226) | 26,376) | 26,142) | 27,898) | 25,578) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.43 | 0.45 | 0.45 | 0.46 | 0.45 | 0.50 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| lululemon athletica inc. | 0.27 | 0.27 | 0.25 | 0.25 | 0.24 | 0.24 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Durables & Apparel | — | 0.42 | 0.42 | 0.44 | 0.43 | 0.47 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 0.54 | 0.58 | 0.63 | 0.65 | 0.65 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,033 ÷ 25,898 = 0.43
2 Click competitor name to see calculations.
An examination of solvency metrics from 2021 to 2026 reveals a gradual improvement in the capital structure. The overall trend is characterized by a steady reduction in total debt relative to total capital, indicating a shift toward a more conservative financial leverage position and enhanced long-term solvency.
- Total Debt Trends
- A consistent decline in total debt, including operating lease liabilities, is observed. The balance decreased from US$ 12,811 million in 2021 to a low of US$ 11,013 million in 2025, before stabilizing at US$ 11,033 million in 2026. This represents a total reduction in liabilities of approximately 14% over the period.
- Total Capital Fluctuations
- Total capital exhibited moderate volatility, peaking at US$ 27,898 million in 2022 and reaching a minimum of US$ 24,226 million in 2025. The period concluded with total capital at US$ 25,898 million in 2026, suggesting a relatively stable capital base despite interim fluctuations.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrates a downward trajectory, moving from 0.50 in 2021 to 0.43 in 2026. A primary reduction occurred between 2021 and 2022, where the ratio dropped from 0.50 to 0.45. Following a period of stability between 2022 and 2025, the ratio reached its lowest point in 2026, confirming a decrease in the proportion of debt used to finance the organization's assets.
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Debt to Assets
Nike Inc., debt to assets calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Total assets | 38,410) | 36,579) | 38,110) | 37,531) | 40,321) | 37,740) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.21 | 0.22 | 0.23 | 0.24 | 0.23 | 0.25 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Debt to Assets, Sector | |||||||
| Consumer Durables & Apparel | — | 0.18 | 0.20 | 0.21 | 0.21 | 0.22 | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | — | 0.29 | 0.32 | 0.34 | 0.35 | 0.36 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,942 ÷ 38,410 = 0.21
2 Click competitor name to see calculations.
The analysis of solvency indicators over the six-year period from 2021 to 2026 reveals a consistent strengthening of the balance sheet, characterized by a gradual reduction in leverage relative to total assets.
- Total Debt Trends
- Total debt remained relatively stable between 2021 and 2022, hovering around US$ 9.4 billion. A subsequent downward trajectory is observed, with a notable reduction occurring between May 31, 2024, and May 31, 2025, where debt decreased from US$ 8,903 million to US$ 7,961 million. By May 31, 2026, debt levels reached their lowest point in the observed period at US$ 7,942 million.
- Total Asset Volatility
- Total assets exhibited fluctuations throughout the period. After reaching a peak of US$ 40,321 million in 2022, assets experienced a contraction in 2023 and again in 2025. However, a recovery is evident by May 31, 2026, with assets increasing to US$ 38,410 million, suggesting a cyclical pattern in asset valuation or strategic reallocation.
- Debt to Assets Ratio Analysis
- The debt to assets ratio demonstrates a general decline from 0.25 in 2021 to 0.21 by 2026. While a slight increase to 0.24 occurred in 2023—driven by a decrease in total assets—the overarching trend indicates a reduction in financial leverage. The consistent decline observed from 2024 through 2026 reflects a strategic shift toward a less debt-dependent capital structure, thereby enhancing long-term solvency and reducing financial risk.
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Debt to Assets (including Operating Lease Liability)
Nike Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,000) | —) | 1,000) | —) | 500) | —) | |
| Long-term debt, excluding current portion | 5,942) | 7,961) | 7,903) | 8,927) | 8,920) | 9,413) | |
| Total debt | 7,942) | 7,961) | 8,903) | 8,927) | 9,420) | 9,413) | |
| Current portion of operating lease liabilities | 478) | 502) | 477) | 425) | 420) | 467) | |
| Operating lease liabilities, excluding current portion | 2,613) | 2,550) | 2,566) | 2,786) | 2,777) | 2,931) | |
| Total debt (including operating lease liability) | 11,033) | 11,013) | 11,946) | 12,138) | 12,617) | 12,811) | |
| Total assets | 38,410) | 36,579) | 38,110) | 37,531) | 40,321) | 37,740) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.29 | 0.30 | 0.31 | 0.32 | 0.31 | 0.34 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| lululemon athletica inc. | 0.21 | 0.21 | 0.20 | 0.19 | 0.18 | 0.19 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Durables & Apparel | — | 0.28 | 0.30 | 0.31 | 0.30 | 0.32 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | — | 0.38 | 0.41 | 0.43 | 0.44 | 0.44 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,033 ÷ 38,410 = 0.29
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a consistent trend of deleveraging between May 31, 2021, and May 31, 2026. A gradual improvement in the financial structure is evident, as total liabilities relative to the asset base have steadily declined, indicating a reduction in financial risk and an increase in long-term solvency.
- Total Debt Obligations
- Total debt, including operating lease liabilities, followed a consistent downward trajectory for the majority of the period. Obligations decreased from US$ 12,811 million in 2021 to a low of US$ 11,013 million in 2025, with a marginal increase to US$ 11,033 million by 2026. This overall reduction suggests a systematic repayment of debt or a strategic shift toward lower leverage.
- Total Asset Dynamics
- The asset base demonstrated moderate volatility, peaking at US$ 40,321 million in 2022 before experiencing a decline and subsequent recovery to US$ 38,410 million by 2026. Despite these fluctuations, the asset base remained sufficiently stable to maintain a healthy coverage of total debt.
- Debt to Assets Ratio Interpretation
- The debt to assets ratio transitioned from 0.34 in 2021 to 0.29 in 2026. This contraction indicates that a smaller proportion of the company's assets is financed through debt over the six-year period. The steady decline in this ratio, particularly the drop to 0.29 in the final year, reflects an improved capacity to meet long-term obligations and a stronger balance sheet position.
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Financial Leverage
Nike Inc., financial leverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 38,410) | 36,579) | 38,110) | 37,531) | 40,321) | 37,740) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.58 | 2.77 | 2.64 | 2.68 | 2.64 | 2.96 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| lululemon athletica inc. | 1.70 | 1.76 | 1.68 | 1.78 | 1.80 | 1.64 | |
| Financial Leverage, Sector | |||||||
| Consumer Durables & Apparel | — | 2.52 | 2.42 | 2.51 | 2.51 | 2.74 | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | — | 3.11 | 3.44 | 3.95 | 4.32 | 4.22 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 38,410 ÷ 14,865 = 2.58
2 Click competitor name to see calculations.
The analysis of financial leverage between May 2021 and May 2026 reveals a general reduction in the reliance on debt to finance assets. The solvency profile indicates a trend toward a more conservative capital structure, characterized by a consistent long-term decrease in the financial leverage ratio.
- Total Assets
- Total assets exhibited volatility throughout the observed period, peaking at US$ 40,321 million in 2022. A subsequent contraction occurred through 2025, where assets reached a period low of US$ 36,579 million, before recovering to US$ 38,410 million by May 31, 2026.
- Shareholders’ Equity
- Equity levels followed a trajectory similar to total assets, reaching a peak of US$ 15,281 million in 2022. After fluctuations in the intervening years, equity strengthened to US$ 14,865 million by May 31, 2026, supporting the overall solvency of the entity.
- Financial Leverage Ratio
- The financial leverage ratio decreased from 2.96 in 2021 to 2.58 in 2026. Despite a temporary increase to 2.77 in 2025, the overall trend reflects a reduction in the proportion of debt used relative to equity, which suggests a decrease in financial risk over the six-year window.
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Interest Coverage
Nike Inc., interest coverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 3,108) | 3,219) | 5,700) | 5,070) | 6,046) | 5,727) | |
| Add: Income tax expense | 792) | 666) | 1,000) | 1,131) | 605) | 934) | |
| Add: Interest expense | 228) | 297) | 269) | 291) | 299) | 296) | |
| Earnings before interest and tax (EBIT) | 4,128) | 4,182) | 6,969) | 6,492) | 6,950) | 6,957) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 18.11 | 14.08 | 25.91 | 22.31 | 23.24 | 23.50 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Interest Coverage, Sector | |||||||
| Consumer Durables & Apparel | — | 22.75 | 34.00 | 26.89 | 27.71 | 26.27 | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | — | 13.89 | 15.00 | 12.23 | 9.30 | 13.23 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,128 ÷ 228 = 18.11
2 Click competitor name to see calculations.
The analysis of solvency ratios indicates a consistently strong capacity to service interest obligations, although a notable shift in operating profitability and expense management occurred toward the end of the analyzed period.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating earnings exhibited relative stability between 2021 and 2024, fluctuating within the range of 6.492 billion to 6.969 billion US dollars. A significant contraction is observed in 2025, with EBIT decreasing to 4.182 billion US dollars, followed by a further slight decline to 4.128 billion US dollars by May 31, 2026.
- Interest Expense Dynamics
- Interest obligations remained largely consistent from 2021 through 2025, fluctuating between 269 million and 299 million US dollars. A notable reduction occurred in the final period, as interest expenses fell to 228 million US dollars by May 31, 2026, representing the lowest expense level within the analyzed timeframe.
- Interest Coverage Ratio Performance
- The interest coverage ratio maintained a high threshold from 2021 to 2024, reaching a peak of 25.91. A sharp decline was recorded in 2025, where the ratio dropped to 14.08, directly correlating with the substantial reduction in EBIT. By May 31, 2026, the ratio recovered to 18.11; this improvement was driven by the decrease in interest expenses rather than a recovery in operating earnings.
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Fixed Charge Coverage
Nike Inc., fixed charge coverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 3,108) | 3,219) | 5,700) | 5,070) | 6,046) | 5,727) | |
| Add: Income tax expense | 792) | 666) | 1,000) | 1,131) | 605) | 934) | |
| Add: Interest expense | 228) | 297) | 269) | 291) | 299) | 296) | |
| Earnings before interest and tax (EBIT) | 4,128) | 4,182) | 6,969) | 6,492) | 6,950) | 6,957) | |
| Add: Operating lease costs | 693) | 663) | 618) | 585) | 593) | 589) | |
| Earnings before fixed charges and tax | 4,821) | 4,845) | 7,587) | 7,077) | 7,543) | 7,546) | |
| Interest expense | 228) | 297) | 269) | 291) | 299) | 296) | |
| Operating lease costs | 693) | 663) | 618) | 585) | 593) | 589) | |
| Fixed charges | 921) | 960) | 887) | 876) | 892) | 885) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.23 | 5.05 | 8.55 | 8.08 | 8.46 | 8.53 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| lululemon athletica inc. | 6.51 | 8.60 | 8.69 | 6.42 | 7.19 | 5.23 | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Durables & Apparel | — | 5.97 | 8.59 | 7.72 | 8.21 | 7.94 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | — | 5.16 | 5.95 | 4.95 | 3.65 | 5.60 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,821 ÷ 921 = 5.23
2 Click competitor name to see calculations.
An analysis of solvency metrics indicates a period of stability and strong coverage between 2021 and 2024, followed by a significant contraction in the capacity to cover fixed obligations starting in 2025.
- Earnings Before Fixed Charges and Tax
- Earnings remained relatively consistent from 2021 through 2024, fluctuating between 7,077 million and 7,587 million US dollars. However, a sharp decline is observed starting in 2025, where earnings dropped to 4,845 million US dollars, with a further slight decrease to 4,821 million US dollars in 2026. This represents a substantial reduction in the operational income available to service fixed obligations.
- Fixed Charges
- Fixed charges exhibited minimal volatility over the analyzed period. Obligations remained stable between 876 million and 892 million US dollars from 2021 to 2024. A moderate increase occurred in 2025, reaching 960 million US dollars, before adjusting downward to 921 million US dollars in 2026.
- Fixed Charge Coverage Ratio
- The coverage ratio remained robust from 2021 to 2024, peaking at 8.55 in 2024, indicating a high margin of safety for creditors. A significant deterioration is evident in 2025, as the ratio fell to 5.05. While a marginal recovery to 5.23 is noted in 2026, the overall trend reflects a diminished solvency cushion resulting primarily from the decline in earnings rather than a surge in fixed costs.
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