Nike Inc. (NYSE:NKE)

Debt to Equity

The Debt to Equity ratio demonstrated relative stability around 0.4 from August 2019 to February 2020, followed by a significant spike in May 2020 reaching 1.2. Subsequently, the ratio steadily declined, stabilizing between 0.59 and 0.65 through to August 2025. This pattern suggests a temporary increase in leverage in early 2020, likely due to specific financial strategies or external factors, with a cautious reduction thereafter.

Debt to Equity (Including Operating Lease Liability)

Including operating lease liabilities, this ratio also peaked in May 2020 at 1.62, indicating increased total liabilities relative to equity during that period. After this peak, the ratio gradually decreased and generally fluctuated between 0.8 and 0.87 through the most recent quarters, implying a marginally higher overall leverage when accounting for lease obligations but a similar trend of post-peak stabilization.

Debt to Capital

This ratio followed a comparable trend with an increase from around 0.28 in early 2020 to 0.55 in May 2020. Afterward, a consistent decline was observed, leading to a range near 0.37 to 0.39 in subsequent periods. This reduction signals a strategic decrease in debt relative to the company’s total capital base following the mid-2020 peak.

Debt to Capital (Including Operating Lease Liability)

When including operating lease liabilities, the Debt to Capital ratio mirrored the typical debt to capital trend but at higher levels. It increased to 0.62 in May 2020 and decreased thereafter, stabilizing in the range of 0.44 to 0.47. This indicates the leases represent a meaningful portion of the company's capital structure but with a maintained conservative leverage approach post-2020.

Debt to Assets

The Debt to Assets ratio exhibited a sharp increase to 0.31 in May 2020 from approximately 0.13-0.14 in previous quarters, aligning with the timing of increased leverage. Afterwards, it declined and remained relatively stable around 0.21 to 0.25, reflecting a controlled level of debt relative to asset base after adjustments post-2020.

Debt to Assets (Including Operating Lease Liability)

Including operating lease liabilities, the ratio peaked at 0.42 in May 2020 and then fell to maintain levels close to 0.3 in recent periods. The data suggests lease liabilities substantially impact total debt exposure but are managed to keep asset leverage at moderate levels.

Financial Leverage

The Financial Leverage ratio showed an increase from about 2.85 in late 2019 to 3.89 in May 2020, indicating higher overall leverage during that quarter. Subsequently, it steadily declined to a range between 2.6 and 2.77 in subsequent quarters, signaling an effort to moderate leverage ratios following the mid-2020 peak, maintaining a stable financial structure.

Summary of Trends

All analyzed leverage ratios indicate a pronounced spike around May 2020, possibly linked to external economic conditions or company-specific financial decisions at that time. Following this spike, the company systematically pursued deleveraging strategies or experienced conditions leading to reduced reliance on debt relative to equity, capital, and assets. The inclusion of operating lease liabilities consistently increases leverage ratios, highlighting the significance of lease obligations in the financial structure. Overall, the trends after mid-2020 exhibit stabilization and moderate improvement in financial leverage metrics through to mid-2025.

The financial data reveals several notable trends in the company's capital structure over the analyzed quarterly periods.

Total Debt

Total debt exhibited considerable volatility during the timeframe. Initially, it remained relatively stable around a range of approximately $3.5 billion to $3.8 billion up to February 2020. A sharp increase occurred in the quarter ending May 31, 2020, rising dramatically to about $9.7 billion, and subsequently stabilized near $9.4 billion through early 2023. Thereafter, a gradual decline is observable, with debt levels decreasing to nearly $8.0 billion by August 2025. This pattern suggests a significant borrowing event around mid-2020, followed by efforts to gradually reduce debt.

Shareholders’ Equity

Shareholders' equity showed overall growth throughout the period, starting around $9.2 billion and experiencing fluctuations but a general upward trend, peaking near $15.8 billion in August 2022. After this peak, a downward trend emerges, with equity declining steadily to approximately $13.5 billion by August 2025. This indicates that the company increased its equity base substantially through mid-2022 before facing pressures that reduced equity towards the end of the period.

Debt to Equity Ratio

The debt to equity ratio reflects the combined movements of debt and equity. It was relatively low and stable (close to 0.4) prior to May 2020. The ratio then spiked sharply to 1.2 during the May 2020 quarter, consistent with the surge in total debt. Following this peak, there was a consistent decline and stabilization of the ratio within the range of approximately 0.6 to 0.65 through early 2025. This decline suggests improvements in financial leverage, with the company reducing reliance on debt relative to equity after the spike.

Overall, the financial data indicates a significant strategic shift in mid-2020 characterized by increased debt levels, possibly reflecting capital raising to address specific needs or challenges. Subsequently, the company has focused on deleveraging and managing its capital structure prudently while equity levels, after an initial strong rise, have experienced some contraction. The steady debt to equity ratio in the latter periods suggests a balanced approach to financing between debt and shareholder funds.

The analysis of the financial data over multiple quarters reveals several trends regarding total debt, shareholders’ equity, and the debt to equity ratio.

Total Debt (including operating lease liability)

Total debt initially fluctuated modestly around the range of approximately 6,800 to 7,000 million USD from late 2019 through early 2020. A sharp increase is observed in the quarter ending May 31, 2020, where debt nearly doubled to over 13,000 million USD. Following this spike, total debt gradually declined over the subsequent quarters, stabilizing around the 12,000 to 12,800 million USD range until early 2023. From mid-2023 onward, total debt exhibits a consistent downward trajectory, reaching close to 11,000 million USD by Q3 2025, reflecting a reduction in liabilities over time.

Shareholders’ Equity

Shareholders’ equity showed moderate growth from approximately 9,200 million USD in late 2019 to around 10,600 million USD by late 2020. There was a substantial increase thereafter, peaking near 15,800 million USD by Q3 2022. Post this peak, equity slightly declined but remained relatively stable, fluctuating between roughly 13,200 and 14,400 million USD through mid-2025. Overall, equity exhibited a rising trend over the period, indicating value accretion for shareholders.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio was steady at approximately 0.74 before the anomalous quarter ending May 31, 2020, corresponding with the surge in debt. The ratio sharply increased to 1.62 at that point, reflecting the increased leverage. Subsequently, the ratio steadily decreased quarter by quarter, trending downward from this high point to a range between 0.8 and 0.9 over the next two years. From late 2022 to mid-2025, it remained relatively stable near 0.82 to 0.87, exhibiting a maintained moderate leverage level following the post-spike normalization phase.

In summary, the financial data indicates that the company experienced a significant spike in debt around mid-2020, which was managed and gradually reduced over time. Shareholders' equity increased substantially during the observed period, contributing to a reduced leverage ratio following the spike. The stabilizing debt to equity ratio suggests that the company has maintained a balanced capital structure in recent years after addressing elevated debt levels.

Total Debt

The total debt exhibited significant volatility over the observed periods. Initially, total debt remained relatively stable around the 3,700 million USD mark from August 2019 through February 2020. However, from May 2020, there was a sharp increase, peaking near 9,657 million USD. Following this spike, debt levels plateaued with minor fluctuations, generally hovering around 9,400 million USD until early 2023. Starting mid-2023, total debt demonstrated a gradual decline, reaching approximately 7,966 million USD by August 2025, indicating a trend towards debt reduction in the more recent periods.

Total Capital

Total capital showed a rising trend from August 2019 through November 2021, increasing from approximately 12,919 million USD to around 24,350 million USD. Following this period of growth, total capital stabilized with slight fluctuations, maintaining levels between 23,000 and 25,000 million USD up through early 2023. From mid-2023 onward, there was a noticeable decrease in total capital, declining to about 21,179 million USD by August 2025, suggesting a contraction of the capital base in the most recent quarters.

Debt to Capital Ratio

The debt to capital ratio started at around 0.29 in late 2019 and remained relatively constant through early 2020. Amid the increase in total debt and total capital during the pandemic onset period, this ratio spiked sharply to approximately 0.55 by May 2020, reflecting increased leverage. Subsequently, the ratio exhibited a gradual decline and stabilization between 0.37 and 0.39 from late 2020 through 2024. In the most recent periods, a slight downward trend is observed, with the ratio decreasing towards 0.37 by August 2025, indicating a moderate reduction in financial leverage relative to total capital over time.

The financial data reveals several notable trends in the company's debt and capital structure over the examined periods. The total debt, including operating lease liabilities, initially showed a moderate level around the 6,800 million USD mark in late 2019, followed by a significant spike reaching approximately 13,015 million USD by May 31, 2020. This surge represents a near doubling of total debt, which may correspond to strategic financing or operational needs during that timeframe.

Subsequent to this peak, the total debt levels demonstrate a steady decline and stabilization trend, gradually decreasing to a range slightly above 11,000 million USD by the most recent dates in 2025. This reduction signifies a focused effort to deleverage or optimize the debt profile over the later periods.

In terms of total capital, including operating lease liabilities, there is a general upward trend from around 16,000 million USD in August 2019 to approximately 28,400 million USD by August 2022, indicating overall growth in the company's capital base. Following this peak, total capital slightly retreats and stabilizes in the range of approximately 24,200 million USD to 26,300 million USD through to mid-2025, suggesting a period of consolidation after rapid expansion.

The debt to capital ratio mirrors these movements, with a notable increase from about 0.43 in 2019 to a peak of approximately 0.62 in May 2020, indicating a higher reliance on debt relative to total capital during this peak period. Post-peak, the ratio consistently declines and stabilizes in the mid-0.40s range, fluctuating marginally between 0.44 to 0.47 through 2025. This pattern reflects a strategic reduction in leverage risk and indicates a balanced approach to capital structure management.

Overall, the company's financial leverage experienced a significant, but temporary, increase around early 2020, followed by a deliberate deleveraging phase. Total capital growth was prominent up till 2022 and followed by a period of consolidation. The debt to capital ratio's stabilization at a moderate level suggests cautious financial management aimed at maintaining a sustainable debt load relative to the capitalization base.

The company's financial data over the analyzed quarters reveals notable trends in its leverage and asset base. The total debt levels exhibited a significant spike in the period ending May 31, 2020, rising sharply from approximately 3.5 billion US dollars to nearly 9.7 billion US dollars. Following this spike, debt levels stabilized around 9.4 billion US dollars for several quarters before gradually decreasing to about 8.0 billion US dollars towards the later periods.

Total assets showed a steady upward trend from August 31, 2019, starting at approximately 26.2 billion US dollars and increasing consistently to peak around 41.1 billion US dollars by August 31, 2022. After this peak, total assets gradually declined to around 37.3 billion US dollars by August 31, 2025.

The debt-to-assets ratio closely follows the debt and asset movements. Initially stable at around 0.13 to 0.14, the ratio sharply increased to 0.31 in May 2020, correlating with the surge in debt. Subsequently, this ratio declined and stabilized around 0.23 to 0.25 for several quarters and decreased further to a low of approximately 0.21 by the latest period. This trend indicates an initial increase in leverage during the early phase of the crisis period, followed by a gradual deleveraging and asset base normalization over time.

Total Debt

Experienced a sharp increase during the early 2020 period followed by stability and a gradual decline toward the end of the observed timeframe.

Total Assets

Displayed a general upward trajectory until mid-2022, after which a gradual decrease was observed through mid-2025.

Debt to Assets Ratio

Spiked sharply in mid-2020 reflecting increased leverage, then stabilized and trended slightly downward, indicating improved capital structure management over time.

Total debt (including operating lease liability)

The total debt exhibited an initial increase from 6,821 million USD in August 2019 to a peak of approximately 13,015 million USD in May 2020. Following this peak, a gradual decline is observable, with debt consistently decreasing over the subsequent quarters to about 11,061 million USD by August 2025. This indicates a reduction in leverage or liability management efforts after the sharp rise in early 2020.

Total assets

Total assets started at 26,249 million USD in August 2019 and showed an overall upward trend, reaching a maximum of approximately 41,088 million USD by August 2022. After this peak, total assets gradually declined, settling around 37,334 million USD by August 2025. The increase in assets up to 2022 suggests investment or growth initiatives, followed by a modest contraction or asset optimization in the later periods.

Debt to assets ratio (including operating lease liability)

The debt to assets ratio initially increased sharply from 0.26 in August 2019 to a high of 0.42 in May 2020, corresponding with the spike in total debt and asset growth during that period. Subsequently, this ratio declined steadily to around 0.30 by August 2025, reflecting improved balance sheet leverage and better asset coverage of debt over time. The ratio stabilized in the 0.30–0.33 range throughout the latter part of the observed period.

The company's total assets exhibited a generally upward trend from August 2019 through August 2022, increasing from approximately $26.2 billion to $41.1 billion. This growth phase was interrupted after August 2022, with a gradual decline observed through May 2025, reaching around $37.3 billion. Despite some fluctuations, the asset base remained substantially higher in the later periods compared to the earlier periods, indicating an overall expansion of asset holdings over the full timeframe.

Shareholders’ equity followed a somewhat similar pattern, starting at about $9.2 billion in August 2019 and rising steadily, peaking at approximately $15.8 billion in August 2022. Subsequently, equity experienced a declining trend until May 2025, falling back to roughly $13.5 billion. Even with this decline, equity levels at the end of the period were still above the starting point, suggesting retained net growth in the company’s net worth despite recent pullbacks.

Financial leverage ratio showed notable variation over the examined period. Initially, the leverage hovered close to 2.85–2.9, reflecting a moderate level of debt relative to equity. In May 2020, a significant increase in leverage was evident, peaking near 3.89, which may correlate with a spike in liabilities or a reduction in equity during that quarter. Following this peak, leverage steadily decreased and stabilized between approximately 2.6 and 2.7 from early 2021 through the end of the period. This stabilization indicates a return to more conservative capital structuring after the earlier leverage spike.

Total Assets

Strong growth from 2019 to mid-2022 followed by a mild decline till 2025.

Shareholders’ Equity

Gradual increase peaking in 2022, then declining, yet remaining higher than initial levels.

Financial Leverage

Significant spike in mid-2020, thereafter steady decrease and stabilization around 2.6–2.7.

Overall, the financial data reflect a period of asset expansion and equity growth followed by correction phases. The temporary increase in financial leverage during 2020 may correspond to external challenges or strategic financing decisions, with subsequent deleveraging suggesting prudent management of capital structure in later periods. The company maintains a substantial equity base and relatively stable leverage ratio, indicative of balanced financial risk and resilience.