Nike Inc. (NYSE:NKE)

Net fixed asset turnover

The net fixed asset turnover ratio exhibited a generally upward trend from 7.69 in 2020 to a peak of 10.27 in 2024, indicating improved efficiency in utilizing fixed assets to generate sales over this period. However, there was a slight decline to 9.59 in 2025, suggesting a possible decrease in asset utilization efficiency or changes in asset base or sales volume during the most recent year.

Net fixed asset turnover (including operating lease, right-of-use asset)

This ratio also showed a consistent increase from 4.7 in 2020 to 6.65 in 2024, reflecting enhanced turnover efficiency when considering the impact of operating leases and right-of-use assets. Similar to the net fixed asset turnover, the ratio experienced a decrease to 6.14 in 2025, indicating a slight reduction in efficiency possibly due to changes in lease agreements or asset utilization.

Total asset turnover

The total asset turnover ratio remained relatively stable with a minor decline from 1.19 in 2020 to 1.16 in 2022, followed by a notable increase to 1.36 in 2023. After this peak, a slight decrease to 1.27 was observed in 2025. This pattern suggests an overall improvement in the company's capability to generate sales from its total asset base, with some fluctuations likely related to asset base changes or sales volume variability.

Equity turnover

The equity turnover ratio demonstrated a significant decline from 4.64 in 2020 to 3.06 in 2022, indicating a reduction in sales generated per unit of equity. This was followed by a recovery to 3.66 in 2023, then a modest decrease to 3.5 in 2025. The initial drop may reflect equity increases outpacing sales growth or a temporary decrease in sales, while the partial recovery indicates improved use of equity capital in subsequent years.

The financial data demonstrates several notable trends over the six-year period ending in 2025. Revenues initially show a strong upward trajectory from 37,403 million US dollars in 2020 to a peak of 51,362 million US dollars in 2024. However, in 2025, revenues decline to 46,309 million US dollars, indicating a reversal after consistent growth.

Regarding the company's investment in property, plant, and equipment (PPE), net values remain relatively stable with slight fluctuations. The net PPE decreases marginally from 4,866 million US dollars in 2020 to 4,828 million US dollars in 2025, with minor peaks and troughs observed in the intermediate years.

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, presents a mostly positive trend with some variability. Starting at 7.69 in 2020, the ratio improves significantly to 10.27 by 2024, indicating more efficient utilization of fixed assets in generating revenue. However, in 2025, it declines slightly to 9.59, suggesting a possible reduction in asset efficiency alongside the revenue decrease.

Revenues

Show consistent growth through 2024, followed by a notable decrease in 2025.

Property, plant and equipment, net

Remain broadly stable with minor fluctuations, ending near the initial level in 2025.

Net fixed asset turnover

Improves steadily through 2024 before declining slightly in 2025, correlating with the revenue trend.

In summary, the company experienced a period of growth and increasing operational efficiency through May 2024, but the subsequent year exhibits signs of declining revenues and slightly reduced asset utilization efficiency. The stable PPE base suggests limited new investment or divestiture during this period, which, combined with the downturn in revenues and turnover, may warrant further investigation into market conditions or internal operational changes affecting performance in 2025.

Revenues

Revenues showed a general upward trend from 2020 to 2024, increasing from $37,403 million in 2020 to a peak of $51,362 million in 2024. This represents a steady growth over the five-year period. However, in 2025, revenues declined notably to $46,309 million, indicating a reversal in the prior positive trajectory.

Property, Plant and Equipment, Net (including operating lease, right-of-use asset)

The net value of property, plant, and equipment remained relatively stable over the years, fluctuating mildly within a narrow range. Starting at $7,963 million in 2020, the figure oscillated slightly through the periods, ending at $7,540 million in 2025. This suggests limited changes in investment or disposal of fixed assets during this time frame.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio exhibited an improving trend from 2020 through 2024, rising from 4.7 to 6.65. This indicates increasing efficiency in generating revenues from the fixed asset base. Nonetheless, there was a decline to 6.14 in 2025, reflecting reduced asset utilization or lower revenue generation efficiency relative to the asset base for that year.

Overall Insights

The data reflect a period of revenue growth accompanied by a stable asset base and improving asset turnover efficiency for most of the timeframe analyzed. The peak in revenues and asset turnover ratio in 2024 suggests optimal operational performance. The subsequent decline in 2025 across both revenues and asset turnover may signal emerging challenges in maintaining growth momentum or operational efficiency. The consistent level of property, plant, and equipment indicates no significant asset expansion or contraction, suggesting reliance on existing capacities.

Revenue Trends

Revenues exhibited a generally upward trajectory from May 31, 2020, to May 31, 2024, increasing from $37,403 million to $51,362 million. This reflects a steady growth over the five-year period. However, in the final year ending May 31, 2025, revenues experienced a decline to $46,309 million, indicating a reversal in the recent growth trend.

Total Assets

Total assets showed an overall increase from $31,342 million in 2020 to a peak of $40,321 million by May 31, 2022. After this peak, total assets declined slightly to $37,579 million by May 31, 2023, and, despite a minor recovery to $38,110 million in 2024, decreased again to $36,579 million in 2025. This suggests some asset contraction or optimization in the more recent years after initial growth.

Total Asset Turnover

The total asset turnover ratio remained relatively stable around the range of 1.16 to 1.19 between 2020 and 2022. A notable increase occurred in 2023 and 2024, with values rising to 1.36 and 1.35 respectively, indicating improved efficiency in using assets to generate revenues during these periods. In 2025, this ratio declined to 1.27, though it remained higher than the earlier years, suggesting a slight reduction in operational efficiency but not reverting to previous lower levels.

Summary of Patterns

The data reveals initial growth phases in both revenue and assets, followed by a recent decline in both metrics in 2025. The improvement in total asset turnover around 2023 and 2024 suggests enhanced asset utilization, potentially driven by better management practices or strategic initiatives. Despite the recent downturn in revenues and a modest decline in total asset turnover in 2025, the company maintains relatively efficient use of assets compared to earlier years. The fluctuation in total assets may reflect changes in investment or divestment strategies aligned with operational adjustments or market conditions.

Revenue Trends

Revenues demonstrated a generally upward trajectory from 2020 through 2024, increasing from $37,403 million in 2020 to a peak of $51,362 million in 2024. However, there was a notable decline in 2025, with revenues dropping to $46,309 million. This suggests some volatility in revenue generation, with growth slowing and reversing in the most recent period.

Shareholders’ Equity

Shareholders’ equity rose substantially from 2020 to 2022, moving from $8,055 million to $15,281 million. Post-2022, equity levels declined somewhat, reaching $13,213 million in 2025. The increase through 2022 indicates accumulation of retained earnings or capital infusion; the decline thereafter might reflect share repurchases, dividends, or other capital adjustments.

Equity Turnover Ratio

The equity turnover ratio decreased sharply from 4.64 in 2020 to 3.06 in 2022, implying that revenues generated per unit of equity were declining. Afterwards, the ratio recovered mildly, fluctuating between 3.5 and 3.66 during 2023-2025. This pattern suggests that while operational efficiency relative to equity decreased initially, some stabilization or improvement occurred in the latter periods.

Overall Insights

The combination of rising equity with a decreasing equity turnover ratio from 2020 to 2022 points to a dilution in operational efficiency relative to equity base expansion. The subsequent decline in revenues and equity from 2024 to 2025 may indicate challenges in maintaining growth momentum and capital strength. The slight recovery in the equity turnover ratio toward 2025 suggests an attempt to optimize equity use despite the drop in top-line revenue.