Nike Inc. (NYSE:NKE)

The analysis of the financial turnover ratios over the specified periods reveals several noteworthy trends.

Net Fixed Asset Turnover

This ratio exhibits a general upward trend from August 2020 through early 2023, moving from 7.51 to around 10.25, indicating increasing efficiency in utilizing fixed assets to generate sales. However, post-February 2023, the ratio stabilizes and experiences minor fluctuations, remaining near 10 before gradually declining toward 9.55 by August 2025, suggesting a slight decrease in asset utilization efficiency over the latter periods.

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

The adjusted net fixed asset turnover ratio displays more variability, starting at 4.59 in August 2020 and generally rising to a peak of around 6.65 in May 2024. There are notable dips such as in February 2022 (5.34) and subtle downward adjustments after peaks, indicating some changes in asset base or lease-related asset utilization. The ratio trends downward moderately after mid-2024 to about 6.12 by August 2025, reflecting possible modifications in lease asset accounting or utilization efficiency.

Total Asset Turnover

The total asset turnover ratio shows an initial decline from 1.12 in August 2020 to 1.06 in February 2021, followed by a steady increase to a peak of approximately 1.40 by August 2023. From that peak, there is a gradual decline to 1.24 by August 2025. This indicates fluctuations in overall asset productivity, with improvements through mid-2023 before a mild reduction in the subsequent periods.

Equity Turnover

The equity turnover ratio starts relatively high at 4.05 in August 2020 but declines sharply to 3.23 by February 2021. The ratio fluctuates moderately around the mid-3 range thereafter, reaching 3.68 in August 2023. Afterward, it slightly decreases toward 3.45 by August 2025. These movements suggest variations in how efficiently the company is using shareholder equity to generate revenue, with some recovery mid-period but a downward tendency in the later stage.

Overall, the data points to improved asset utilization efficiency over the initial years, peaking around early to mid-2023, followed by stabilization or moderate declines in turnover ratios. The inclusion of operating lease assets illustrates additional volatility, pointing to impacts from lease accounting or asset management changes. The trends imply that while operational efficiency improved notably in the early periods, maintaining those levels has become more challenging in recent years.

The analysis of the quarterly financial performance reveals several significant trends in revenues, property, plant, and equipment net values, as well as net fixed asset turnover for the period under consideration.

Revenues

Revenues exhibit a fluctuating pattern with variations occurring quarter over quarter. Initially, there is a general upward trend from August 2020 through May 2021, reaching a peak near 12,344 million US dollars. Following this peak, revenues experienced some declines and rises but remained relatively stable, mostly fluctuating between approximately 11,000 million and 13,000 million US dollars. Toward the latter part of the dataset, revenues show a modest decline, notably dropping below 12,000 million in multiple quarters, suggesting some volatility or seasonal effects impacting sales.

Property, Plant, and Equipment, Net

This asset category shows a gradual but consistent decline from the start of the period through most quarters, decreasing from roughly 4,969 million US dollars to a low near 4,717 million. However, an uptick is observed starting before May 2023, peaking around 5,153 million, followed by another slight fall toward the end of the analyzed timeframe. This pattern suggests periodic investment in fixed assets with intervening depreciation or disposals reducing net asset value.

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates an overall improvement from a value of 7.51 through August 2020 to a peak exceeding 10.25 in early 2023, indicating enhanced efficiency in generating revenues from fixed assets. After this peak, the ratio stabilizes around 10 before showing a minor downturn to values near 9.55 at the end of the period, reflecting a moderate reduction in asset utilization efficiency.

In summary, revenues present a pattern of moderate volatility but maintain a relatively high level throughout. The net fixed assets slightly decline overall with periodic reinvestment efforts evident. Asset utilization, as reflected by the net fixed asset turnover ratio, improves substantially over the period, peaking around early 2023 before slightly tapering off, signaling generally increased operational efficiency with some recent easing.

The financial data reflects notable trends in revenues, property assets, and asset utilization over the analyzed quarterly periods.

Revenues

Revenues demonstrate a fluctuating yet generally upward trend from August 2020 through November 2023, reaching peaks above $13 billion. Specifically, revenues grew from approximately $10.6 billion in August 2020 to peak periods near $13.4 billion in late 2023. However, following this peak, there is a visible downward adjustment with revenues declining to about $11.7 billion in August 2025. The pattern suggests seasonal or cyclical factors impacting revenues with notable spikes approximately every four to five quarters.

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

The net value of property, plant, and equipment shows a general decline over the full period. Initial values start just above $8.1 billion in mid-2020, dipping to around $7.6 billion by late 2025. Some fluctuations occur mid-period with brief rises, such as early 2022’s increase to over $8.7 billion, but the overall trend is downward. This decline may indicate aging assets, disposals, or a deferral of capital expenditures relative to depreciation and amortization.

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

The net fixed asset turnover ratio steadily improves throughout the timeline, moving from 4.59 in August 2020 to levels consistently above 6.0 after mid-2021, peaking around 6.65 in May 2024. This increase highlights enhanced efficiency in utilizing fixed assets to generate revenue despite the shrinking asset base. The ratio's resilience suggests operational improvements or shifts in the business model that allow higher revenue generation per dollar of assets employed.

In summary, the data reveals a company that increased revenue generation efficiency relative to its fixed assets, even as the asset base contracted somewhat. The revenue fluctuations indicate possible seasonality or variable demand factors, while the rising asset turnover ratio underscores a positive trend in asset productivity. The decline in net property and equipment highlights attention areas for capital management or asset renewal strategies going forward.

The quarterly financial data reveals several key trends in revenues, total assets, and total asset turnover over the analyzed periods.

Revenues

Revenues exhibit fluctuations with a general pattern of growth interspersed with periods of slight decline. Starting at approximately $10.6 billion, revenues increased toward $12.3 billion by mid-2021, followed by some volatility around this level. Notably, revenues reached a peak near $13.4 billion in late 2023 before showing a moderate downward trend in 2024 and 2025, stabilizing around $11.7 billion to $11.1 billion toward the end of the observed timeline.

Total Assets

Total assets show an overall upward movement from roughly $33.3 billion to peaks near $41.1 billion around mid-2022. Following this high point, total assets registered a gradual decline, decreasing to approximately $36.6 billion by mid-2025. This suggests a divestment or reduction in asset base after a phase of accumulation.

Total Asset Turnover

The total asset turnover ratio demonstrates a strengthening efficiency in asset utilization over the periods. Starting at around 1.12, the ratio experienced slight decreases early on but then followed an upward trend, reaching a peak near 1.40 in late 2023. Subsequently, the ratio experienced a gentle decline, settling around 1.24 by mid-2025. This reflects a more effective use of assets to generate revenues in the middle periods, followed by some moderation in efficiency toward the end.

In summary, the data indicates a period of revenue growth accompanied by increasing total assets and improving asset efficiency up to around late 2023. Following these peaks, there is evidence of moderating revenues alongside a reduction in asset size and a slight decrease in asset turnover ratio, suggesting strategic adjustments may be underway in asset management and revenue generation strategies.

The financial data reveals several important trends regarding revenues, shareholders' equity, and equity turnover over the analyzed periods.

Revenues

The revenue figures show some fluctuations across the reported quarters. After an initial revenue of approximately $10.6 billion in August 2020, revenues peaked at $12.3 billion in May 2021. Subsequently, revenues demonstrated variability with a noticeable increase reaching about $13.4 billion in November 2023. However, after this peak, the trend shows a general decline, with revenues falling to $11.7 billion by August 2025. This pattern indicates periods of growth followed by contractions, suggesting a cyclical or seasonal nature to sales performance or the possible impact of external factors influencing demand.

Shareholders’ equity

Shareholders' equity exhibits a steadily increasing trend from $9.2 billion in August 2020, with consistent growth reaching a peak of approximately $15.8 billion by August 2022. After this peak, equity declined gradually to about $13.5 billion by August 2025. The initial growth phase indicates successful capital retention and possibly profitability, whereas the decline post-2022 may point to dividends distribution, share repurchases, or other equity-reducing activities.

Equity turnover ratio

The equity turnover ratio, which measures revenue generated per unit of equity, started high at 4.05 in August 2020, followed by a downward movement to lows near 3.0 during 2021 and 2022. From late 2022 onwards, this ratio improved, reaching around 3.68 in August 2023, yet showing a slight decline afterward to approximately 3.45 by August 2025. The initial decline suggests that equity growth outpaced revenue growth during the early periods, while the subsequent increase implies revenues rising relative to equity. The recent slight decrease may indicate that equity is growing faster than revenues again or that revenue growth is slowing.

Overall, the company experienced revenue and equity growth until mid-2022, followed by a period of declining equity and fluctuating revenues. The equity turnover ratio trend indicates relative efficiency changes in utilizing equity to generate revenue, reflecting shifts in operational performance or capital structure over time.