Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Nike Inc. (NYSE:NKE)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Nike Inc., solvency ratios

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Debt Ratios
Debt to equity 1.20 0.38 0.39 0.31 0.17 0.10
Debt to equity (including operating lease liability) 1.62 0.38 0.39 0.31 0.17 0.10
Debt to capital 0.55 0.28 0.28 0.23 0.14 0.09
Debt to capital (including operating lease liability) 0.62 0.28 0.28 0.23 0.14 0.09
Debt to assets 0.31 0.15 0.17 0.16 0.10 0.06
Debt to assets (including operating lease liability) 0.42 0.15 0.17 0.16 0.10 0.06
Financial leverage 3.89 2.62 2.30 1.87 1.75 1.70
Coverage Ratios
Interest coverage 20.12 37.65 35.88 57.81 150.13 124.68
Fixed charge coverage 5.01 6.00 5.58 6.98 7.68 7.70

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Nike Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Nike Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Nike Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Nike Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Nike Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Nike Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Nike Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Nike Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Nike Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity

Nike Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Solvency Ratio
Debt to equity1 1.20 0.38 0.39 0.31 0.17 0.10
Benchmarks
Debt to Equity, Competitors2
Colgate-Palmolive Co. 10.23 67.07
Estée Lauder Cos. Inc. 1.56 0.78 0.76 0.81 0.63 0.45
Kimberly-Clark Corp. 13.36 11.80
Debt to Equity, Sector
Personal Goods 1.66 1.50 1.23 1.19
Debt to Equity, Industry
Consumer Goods 1.83 1.79 1.76 1.52

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 9,657 ÷ 8,055 = 1.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Nike Inc.’s debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

Nike Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
Current portion of operating lease liabilities 445  —  —  —  —  — 
Operating lease liabilities, excluding current portion 2,913  —  —  —  —  — 
Total debt (including operating lease liability) 13,015  3,479  3,810  3,802  2,055  1,260 
 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.62 0.38 0.39 0.31 0.17 0.10
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Colgate-Palmolive Co. 11.06 72.50
Estée Lauder Cos. Inc. 2.23 0.78 0.76 0.81 0.63 0.45
Kimberly-Clark Corp. 14.25 11.80
Debt to Equity (including Operating Lease Liability), Sector
Personal Goods 1.74 1.50 1.23 1.19
Debt to Equity (including Operating Lease Liability), Industry
Consumer Goods 1.87 1.79 1.76 1.52

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 13,015 ÷ 8,055 = 1.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Nike Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital

Nike Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Total capital 17,712  12,519  13,622  16,209  14,313  13,967 
Solvency Ratio
Debt to capital1 0.55 0.28 0.28 0.23 0.14 0.09
Benchmarks
Debt to Capital, Competitors2
Colgate-Palmolive Co. 0.91 0.99 1.02 1.01 1.04
Estée Lauder Cos. Inc. 0.61 0.44 0.43 0.45 0.39 0.31
Kimberly-Clark Corp. 0.93 1.00 1.04 0.92 1.01
Debt to Capital, Sector
Personal Goods 0.62 0.60 0.55 0.54
Debt to Capital, Industry
Consumer Goods 0.65 0.64 0.64 0.60

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,657 ÷ 17,712 = 0.55

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Nike Inc.’s debt to capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

Nike Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
Current portion of operating lease liabilities 445  —  —  —  —  — 
Operating lease liabilities, excluding current portion 2,913  —  —  —  —  — 
Total debt (including operating lease liability) 13,015  3,479  3,810  3,802  2,055  1,260 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Total capital (including operating lease liability) 21,070  12,519  13,622  16,209  14,313  13,967 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.62 0.28 0.28 0.23 0.14 0.09
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Colgate-Palmolive Co. 0.92 0.99 1.02 1.01 1.04
Estée Lauder Cos. Inc. 0.69 0.44 0.43 0.45 0.39 0.31
Kimberly-Clark Corp. 0.93 1.00 1.04 0.92 1.01
Debt to Capital (including Operating Lease Liability), Sector
Personal Goods 0.64 0.60 0.55 0.54
Debt to Capital (including Operating Lease Liability), Industry
Consumer Goods 0.65 0.64 0.64 0.60

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,015 ÷ 21,070 = 0.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Nike Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets

Nike Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
 
Total assets 31,342  23,717  22,536  23,259  21,396  21,600 
Solvency Ratio
Debt to assets1 0.31 0.15 0.17 0.16 0.10 0.06
Benchmarks
Debt to Assets, Competitors2
Colgate-Palmolive Co. 0.48 0.52 0.52 0.52 0.54
Estée Lauder Cos. Inc. 0.35 0.26 0.28 0.31 0.24 0.20
Kimberly-Clark Corp. 0.48 0.51 0.51 0.49 0.52
Debt to Assets, Sector
Personal Goods 0.33 0.34 0.34 0.32
Debt to Assets, Industry
Consumer Goods 0.41 0.42 0.41 0.38

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,657 ÷ 31,342 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Nike Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

Nike Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Current portion of long-term debt 44  107 
Notes payable 248  336  325  74 
Long-term debt, excluding current portion 9,406  3,464  3,468  3,471  2,010  1,079 
Total debt 9,657  3,479  3,810  3,802  2,055  1,260 
Current portion of operating lease liabilities 445  —  —  —  —  — 
Operating lease liabilities, excluding current portion 2,913  —  —  —  —  — 
Total debt (including operating lease liability) 13,015  3,479  3,810  3,802  2,055  1,260 
 
Total assets 31,342  23,717  22,536  23,259  21,396  21,600 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.42 0.15 0.17 0.16 0.10 0.06
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Colgate-Palmolive Co. 0.52 0.56 0.52 0.52 0.54
Estée Lauder Cos. Inc. 0.49 0.26 0.28 0.31 0.24 0.20
Kimberly-Clark Corp. 0.51 0.53 0.51 0.49 0.52
Debt to Assets (including Operating Lease Liability), Sector
Personal Goods 0.35 0.34 0.34 0.32
Debt to Assets (including Operating Lease Liability), Industry
Consumer Goods 0.42 0.42 0.41 0.38

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,015 ÷ 31,342 = 0.42

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Nike Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Financial Leverage

Nike Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Total assets 31,342  23,717  22,536  23,259  21,396  21,600 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Solvency Ratio
Financial leverage1 3.89 2.62 2.30 1.87 1.75 1.70
Benchmarks
Financial Leverage, Competitors2
Colgate-Palmolive Co. 21.43 128.50
Estée Lauder Cos. Inc. 4.52 3.00 2.68 2.64 2.58 2.26
Kimberly-Clark Corp. 27.99 24.09
Financial Leverage, Sector
Personal Goods 4.97 4.38 3.61 3.70
Financial Leverage, Industry
Consumer Goods 4.43 4.28 4.25 3.96

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 31,342 ÷ 8,055 = 3.89

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Nike Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

Nike Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Add: Income tax expense 348  772  2,392  646  863  932 
Add: Interest expense 151  131  124  86  31  34 
Earnings before interest and tax (EBIT) 3,038  4,932  4,449  4,972  4,654  4,239 
Solvency Ratio
Interest coverage1 20.12 37.65 35.88 57.81 150.13 124.68
Benchmarks
Interest Coverage, Competitors2
Colgate-Palmolive Co. 20.93 18.19 18.95 23.79 26.09
Estée Lauder Cos. Inc. 7.50 18.35 16.47 16.70 23.00 27.01
Kimberly-Clark Corp. 13.19 11.62 8.29 10.73 10.85
Interest Coverage, Sector
Personal Goods 19.38 17.50 20.83 23.92
Interest Coverage, Industry
Consumer Goods 9.36 11.69 12.86 14.56

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,038 ÷ 151 = 20.12

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Nike Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Fixed Charge Coverage

Nike Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Add: Income tax expense 348  772  2,392  646  863  932 
Add: Interest expense 151  131  124  86  31  34 
Earnings before interest and tax (EBIT) 3,038  4,932  4,449  4,972  4,654  4,239 
Add: Operating lease costs 569  829  820  731  661  594 
Earnings before fixed charges and tax 3,607  5,761  5,269  5,703  5,315  4,833 
 
Interest expense 151  131  124  86  31  34 
Operating lease costs 569  829  820  731  661  594 
Fixed charges 720  960  944  817  692  628 
Solvency Ratio
Fixed charge coverage1 5.01 6.00 5.58 6.98 7.68 7.70
Benchmarks
Fixed Charge Coverage, Competitors2
Colgate-Palmolive Co. 11.10 9.34 9.53 10.58 11.59
Estée Lauder Cos. Inc. 2.33 4.22 4.21 3.89 4.03 4.38
Kimberly-Clark Corp. 5.94 5.88 4.53 6.17 6.32
Fixed Charge Coverage, Sector
Personal Goods 5.99 5.66 6.59 7.08
Fixed Charge Coverage, Industry
Consumer Goods 5.97 7.51 8.40 9.63

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,607 ÷ 720 = 5.01

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Nike Inc.’s fixed charge coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.