Nike Inc. (NYSE:NKE)

Debt to equity

The ratio shows a declining trend from 1.03 at the end of August 2020 to around 0.59 by August 2025, indicating a gradual reduction in reliance on debt relative to equity. The ratio decreased steadily over the initial periods and stabilized around 0.6 in the more recent quarters, suggesting a moderately conservative capital structure.

Debt to equity (including operating lease liability)

This adjusted measure also declined from 1.41 in August 2020 to approximately 0.82 by August 2025. The trend is consistent with the standard debt to equity metric, showing a diminishing overall leverage when considering operating lease liabilities. The decline is somewhat smoother, with minor fluctuations around the 0.85 level in later periods.

Debt to capital

The debt to capital ratio decreased from 0.51 in August 2020 to about 0.37 by August 2025. This reduction indicates an improvement in the company’s capital mix, with a lower proportion of debt financing. After a consistent decrease in the earlier years, the ratio plateaued around 0.38–0.39 in mid-periods before resuming a slight decline towards the end.

Debt to capital (including operating lease liability)

When including operating lease liabilities, the ratio followed a similar downward trend from 0.58 to 0.45. The metric shows a consistent improvement in capital structure with a moderate stabilization in the mid-term, confirming controlled leverage inclusive of lease commitments.

Debt to assets

The ratio fell from 0.29 in August 2020 to roughly 0.21 by August 2025. This decline suggests a reduction in the proportion of total assets financed by debt, reflecting either asset growth or debt repayment over time. The ratio remained relatively stable near 0.24 for much of the later period but showed some further modest decreases toward the end of the timeline.

Debt to assets (including operating lease liability)

Including operating lease liabilities, the debt to assets ratio decreased from 0.39 to 0.30 over the same period. The trend mimics the standard debt to assets ratio, with a gradual reduction that indicates a consistent lowering of overall financial leverage on the asset base when lease obligations are considered.

Financial leverage

Financial leverage, calculated as total assets to equity, dropped from a high of 3.61 in August 2020 to approximately 2.77 by August 2025. This reduction suggests that equity financing has become more prominent compared to total assets. The ratio declined steadily during early quarters and then mostly stabilized around 2.6 to 2.7 in later periods, indicating a maintained moderate leverage level in recent quarters.

Total Debt

The total debt level remained relatively stable over the periods observed, fluctuating slightly around the 9,400 million US$ mark from August 2020 to November 2022. Starting from May 2023, a gradual decline is noticeable, with total debt falling below 9,000 million US$ in several quarters and reaching approximately 7,966 million US$ by August 2025. This indicates a subtle but consistent reduction in leverage through reduced indebtedness in the latter part of the timeframe.

Shareholders’ Equity

Shareholders’ equity demonstrated a steady upward trend from August 2020 through the middle of 2022, increasing from around 9,224 million US$ to a peak exceeding 15,800 million US$ in August 2022. Post this peak, equity values exhibit some decline and volatility, trending downward towards 13,213 million US$ by August 2025. This suggests a phase of expansion followed by some contraction or distribution to shareholders, possibly through dividends or share buybacks.

Debt to Equity Ratio

The debt to equity ratio shows a declining trend from 1.03 in August 2020 to around 0.60 by August 2022, reflecting a decrease in financial leverage as equity grew faster than or debt was reduced relative to equity. After reaching this lower level, the ratio remains relatively stable with minor fluctuations hovering close to the 0.60–0.65 range. By the end of the period in August 2025, the ratio has further decreased slightly to approximately 0.59, indicating a maintained conservative capital structure and reduction in relative debt burden.

Overall Financial Structure Insights

Over the observed period, the company appears to have managed its capital structure with a clear trend toward lowering leverage and increasing equity base initially. Despite some later volatility in equity levels, the gradual reduction in total debt, coupled with a stable to slightly declining debt to equity ratio, points to cautious financial management aimed at strengthening the balance sheet and reducing risk from debt obligations. This conservative approach may enhance the company’s financial flexibility and resilience against market or economic pressures.

Total Debt (Including Operating Lease Liability)

The total debt level decreased gradually over the period from August 31, 2020, to August 31, 2025. Starting at $12,966 million, the debt showed a consistent downward trend with minor fluctuations, reaching approximately $11,061 million by August 31, 2025. This steady reduction in debt suggests a deliberate effort to deleverage or manage liabilities prudently over time.

Shareholders’ Equity

Shareholders’ equity experienced overall growth across the analyzed periods. From an initial value of $9,224 million in August 2020, equity appreciated notably, peaking around $15,822 million in August 2022. Subsequently, the equity declined somewhat, ending near $13,468 million by August 2025. This pattern indicates initial strong capital accumulation followed by moderate erosion or capital distribution in later periods.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio exhibited a consistent decline from 1.41 in August 2020 to approximately between 0.82 and 0.87 in the periods following 2023. This decrease reflects an improvement in the company’s capital structure, with equity growing at a faster pace relative to debt, or debt being reduced faster than equity changes. The ratio stabilized in the range of 0.82 to 0.87 towards the latter part of the period, indicating a maintained leverage level that is significantly lower than at the beginning of the period.

Overall Insights

The financial data reveals a strategic movement toward strengthening the balance sheet through reducing debt and increasing equity, particularly in the initial years. While equity levels experienced some decline after a peak, the overall effect was positive in terms of leverage reduction. The company’s approach during this timeframe appears focused on improving financial stability and lowering risk associated with high leverage.

The financial data reveals notable trends in the company's leverage and capital structure over the analyzed period.

Total Debt

Total debt demonstrated relative stability from August 2020 through November 2022, with values fluctuating narrowly around the 9,400 million US dollar mark. A decline began from February 2023 onwards, reaching approximately 8,000 million US dollars by August 2025, indicating a gradual reduction in borrowing or paydown of liabilities in the longer term.

Total Capital

Total capital exhibited a consistent upward trend from August 2020 until a peak in August 2022, increasing from about 18,770 million to over 25,000 million US dollars. Following this peak, total capital decreased steadily over subsequent periods, leveling off slightly around 21,400 million US dollars by August 2025. This suggests an initial phase of capital expansion followed by a contraction or realignment of capital resources.

Debt to Capital Ratio

The debt to capital ratio declined significantly from 0.51 in August 2020 to about 0.37 by August 2022, reflecting a deleveraging trend and improved capital structure. Post-August 2022, this ratio stabilized around 0.38 to 0.39, demonstrating a maintained moderate leverage level through to August 2025. Slight fluctuations within this band indicate controlled management of debt relative to capital during this later period.

Overall, the patterns depict a company that initially increased its capital base while reducing relative debt exposure, improving leverage metrics through mid-2022. Subsequent years show a retraction in both total capital and debt, maintaining a consistent leverage ratio near 0.38. This behavior could reflect strategic capital optimization efforts and prudent debt management aimed at sustaining financial stability.

The analysis of the financial data over the specified quarterly periods reveals several key trends related to debt, capital structure, and leverage ratios.

Total Debt (including operating lease liability)

Total debt shows a gradual and consistent decline over the observed quarters, starting from approximately $12,966 million and decreasing to about $11,061 million by the latest period. This represents a steady reduction in overall debt levels, with occasional minor fluctuations but an overall downward trajectory, indicating a strategic effort to deleverage or reduce financial obligations over time.

Total Capital (including operating lease liability)

Total capital experienced an upward trend initially, rising from around $22,190 million to a peak near $28,413 million. However, after this peak, the capital begins to decline steadily, reaching approximately $24,529 million by the final quarter. This pattern suggests an initial period of growth or reinvestment followed by a contraction or rebalancing of capital assets and resources.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio decreased notably from 0.58 to around 0.44 in the initial phases, signaling an improvement in the company's leverage position and a reduction in reliance on debt compared to total capital. After stabilizing near the mid-0.40 range for several quarters, the ratio fluctuates modestly between 0.44 and 0.47 toward the later periods. This indicates a relatively stable capital structure with controlled leverage levels, maintaining financial balance without excessive debt.

Overall, the financial profile reflects a company that has been systematically lowering its debt burden while initially increasing, then carefully managing, its total capital base. The leverage ratio trends corroborate this, showing improved financial stability and a cautious approach to debt management over the timeframe analyzed.

Total Debt

The total debt remained relatively stable over the examined periods, fluctuating modestly around the 9,400-million-dollar mark from August 2020 through February 2023. Starting May 2023, there was a slight decline, with total debt decreasing to approximately 8,900 million dollars, reaching a low of around 7,966 million dollars by August 2025. This indicates a gradual reduction in leverage in the more recent periods.

Total Assets

Total assets demonstrated an overall upward trend from August 2020 through August 2022, increasing from about 33,258 million dollars to a peak near 41,088 million dollars. However, following this peak, assets showed a declining trend up to August 2025, falling to approximately 37,334 million dollars. Despite this decrease, total assets in the latest period remain above the initial levels observed in 2020.

Debt to Assets Ratio

The debt to assets ratio steadily declined from 0.29 in August 2020 to around 0.23 by May 2022, reflecting an improvement in the capital structure and possibly a decrease in financial risk. Thereafter, the ratio hovered around 0.24 with minor fluctuations until August 2025, when it further decreased to approximately 0.21. This ratio movement aligns with the observed decrease in total debt relative to total assets, indicating an ongoing trend toward lower leverage.

Summary

Overall, the financial data reveals a gradual deleveraging process, characterized by a slight reduction in total debt alongside moderate fluctuations in total assets. The company's asset base expanded notably until mid-2022 before contracting somewhat in subsequent periods. The consistent decrease in the debt to assets ratio signifies enhanced financial stability and a potentially lower risk profile. This trend suggests a cautious approach to debt management while maintaining a substantial asset base.

The financial data exhibits observable trends in the company's leverage and asset base over the quarters analyzed.

Total debt (including operating lease liability)

The total debt balance demonstrates a general declining trend from August 2020 to August 2025, decreasing from approximately 12,966 million USD to around 11,061 million USD. There are slight fluctuations in the interim periods; however, the overall direction reflects a reduction in debt levels. Notably, the most significant decreases occur from May 2023 onward, suggesting debt management efforts in recent quarters.

Total assets

Total assets increased steadily from August 2020, starting at roughly 33,258 million USD and peaking around May 2022 near 41,088 million USD. Following this peak, a gradual decline is observed, with assets diminishing to approximately 37,334 million USD by August 2025. This pattern indicates an expansion phase in asset accumulation followed by moderate contraction or asset base stabilization thereafter.

Debt to assets ratio (including operating lease liability)

The debt to assets ratio decreased notably from 0.39 in August 2020 to a low of 0.30 by August 2025. This decline reflects a reduction in leverage relative to the asset base. Throughout the timeline, the ratio experienced minor fluctuations but maintained a downward trajectory overall, demonstrating improving balance sheet strength and decreasing dependency on debt financing relative to total assets.

In summary, the data indicates that the company has been effectively reducing its total debt while initially expanding and subsequently consolidating its asset base. Consequently, the leverage ratio improved, signaling enhanced financial stability and lower risk associated with debt obligations over the periods reviewed.

The financial data reveals several key trends in the company's asset base, equity position, and leverage over a span of nearly five years. Analysis of these trends provides insight into the company's capital structure and overall financial stability.

Total Assets

Total assets show a generally increasing trend from August 2020 through August 2022, rising from approximately $33.3 billion to over $41 billion. Following this peak, a gradual decline occurs, stabilizing between roughly $36.5 billion and $38 billion in recent quarters. This pattern suggests initial expansion in asset holdings, potentially reflecting growth or investment activities, followed by a contraction or reallocation of assets in the latter period.

Shareholders’ Equity

Shareholders’ equity exhibits steady growth from August 2020, starting near $9.2 billion and increasing to a peak exceeding $15.8 billion in August 2022. After reaching this high, equity values decline gradually across subsequent periods, settling around $13.5 billion by August 2025. This trajectory suggests the company initially strengthened its equity base considerably, possibly through retained earnings or capital infusion, before experiencing a reduction, which could be attributable to share repurchases, dividend payments, or net losses.

Financial Leverage Ratio

The financial leverage ratio, defined as total assets divided by shareholders’ equity, demonstrates a general decline from 3.61 in August 2020 to a low around 2.6 by late 2021 and early 2022. This decrease indicates a strengthening equity base relative to assets, implying lower reliance on debt financing initially. However, after this period of decline, the ratio begins to trend upward slightly, rising to approximately 2.77 by mid-2025. The rising leverage ratio in recent years could indicate an increased use of debt or slower growth in equity relative to assets, signaling a moderate shift towards higher financial risk.

In summary, the company experienced robust growth in total assets and shareholders’ equity through mid-2022, accompanied by a declining leverage ratio indicative of a stronger capital structure. Post-2022, both assets and equity contracted somewhat, with a corresponding slight increase in financial leverage. These movements could reflect changing strategic priorities, capital management policies, or market conditions influencing asset composition and financing structure.