Nike Financial Report

Nike Financial Report: Financial Ratios and Financial Statements Analyzed

A Beginner's Guide to Nike Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Nike Financial Report by Paul Borosky, MBA. - 2021

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios.
  • Included Free Annual Reports Download for the company (5 years).

Hey All,

Thanks for visiting my Nike Financial Report page. On this page, you will be able to find preliminary information about Nike's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Nike's financial performance, I offer two reports, which are "A Beginner's Guide to Nike Financial Analysis" and "Nike Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Nike Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Nike's 2021 Financial Report by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • Included - Analyst "Letter Grades" for ratios.
  • **See Terms and Conditions.

Nike Beginner’s Guide 2021

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Nike’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • Nike’s Summarized Balance Sheets 15
  • Cash 16
  • Short-Term Investments 17
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 27
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • Nike’s Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • Nike’s Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • Nike’s Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • Nike’s Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50

Nike Financial Report 2021

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Nike’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 9
  • Research and Development (R&D) 10
  • Operating Expenses 11
  • Earnings Before Interest and Taxes (EBIT 11
  • Interest Expense 12
  • Earnings Before Taxes (EBT) 13
  • Taxes 13
  • Net income 14
  • Tax Rate 15
  • Balance Sheet 16
  • Nike’s Summarized Balance Sheets 16
  • Cash 17
  • Short-Term Investments 18
  • Accounts Receivables 19
  • Inventory 20
  • Current Assets 21
  • Property, Plant, and Equipment (PP&E) 22
  • Total Assets 23
  • Accounts Payable 24
  • Accrued Expenses 25
  • Short-Term Debt 25
  • Total Current Liabilities 26
  • Long Term Debt (LT Debt) 27
  • Total Liabilities 29
  • Common Stock and Additional Paid-in Capital 29
  • Treasury 30
  • Retained Earnings 31
  • Total Equity 32
  • Financial Ratios 33
  • Nike’s Liquidity Ratios 34
  • Current Ratio 34
  • Quick Ratio 35
  • Cash Ratio 36
  • Nike’s Asset Ratios 38
  • Total Asset Turnover 39
  • Fixed Asset Turnover 40
  • Days Sales Outstanding 41
  • Inventory Turnover 42
  • Accounts Receivable Turnover 43
  • Accounts Payable Turnover 44
  • Other Asset Ratio Calculations 45
  • Working Capital Turnover 45
  • Average Days in Inventory 45
  • Average Days Payable 46
  • Nike’s Profitability Ratios 47
  • Return on Assets (ROA) 47
  • Return on Equity (ROE) 48
  • Net Profit Margin 49
  • Gross Profit Margin 50
  • Operating Profit Margin 51
  • Nike’s Debt Ratios 53
  • Debt Ratio 53
  • Debt to Equity Ratio 54
  • Times Interest Earned 55
  • Summary 57
  • Nike’s Strengths 57
  • Nike’s Weaknesses 57
  • Nike’s Final Grade 57

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Nike: Brief Summary

Nike Inc., designs, creates and sells sportswear such as sneakers, clothing, sporting equipment, and other athletic-type products. Nike's headquarters in the US is at One Bowerman Dr. in Beaverton, OR. 97005.  The company competes in the customer cyclical business sector.  As for the industry, the organization competes in the footwear and accessories industry.  At present, Nike employs about 73,000 individuals.

Nike Financial Report Sources

“Nike 2021 Financial Report: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, I used Nike's 2018 10k, Nike's 2017 10k annual report, 2021 10k annual report, 2020 10k annual report, and Nike's 2019 10k annual report as the basis for information gathering. 

 

 

 

Section 1: Nike Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Nike's important income statement line item trends.

Nike Revenue Growth.

Nike’s revenues ended 2017 at $34.3 billion.  In three of the next four years, the organization’s revenues would climb continuously.  On average, the firm’s revenue growth rate was about 7%.  Impressively, their highest growth rate, 19.1%, happened recently in 2021.  Most impressive.

Analyst Grade: A

Nike COGS

Nike’s SG&A, as compared to revenues in 2017, was 30.8%.  In the next three years, the organization’s SG&A as compared to revenues would increase moderately, ending 2020 at 35.1%.  This increase indicates that the company was using increased overhead costs to generate fewer sales.  Not a great trend.  Fortunately, in 2021, the organization would mitigate this problem and reduce their SG&A as compared to revenues to 29.2%.

Analyst Grade: B

Nike Summary Income Statement 2021

2021

2020 2019 2018

2017

Revenues

                   44,538

                   37,403                    39,117                    36,397

                     34,350

COGS

                   24,576

                   21,162                    21,643                    20,441

                     19,038

Gross Profit

                   19,962

                   16,241                    17,474                    15,956

                     15,312

 
SG&A

                   13,025

                   13,126                    12,702                    11,511

                     10,563

Depreciation

                        744

                        721                         705                         747

                          706

R & D                            -                            -                            -                             -
Other                            -                            -                            -                             -
Total Operating Expenses

                   13,769

                   13,847                    13,407                    12,258

                     11,269

EBIT

                     6,923

                     2,976                      4,850                      4,379

                       4,945

Other Income                            -                            -                             -
Interest Expense

                        262

                          89                           49                           54

                            59

EBT

                     6,661

                     2,887                      4,801                      4,325

                       4,886

Taxes

                        934

                        348                         772                      2,392

                          646

Net Income

                    5,727

                    2,539                     4,029                     1,933

                     4,240

 

Section 2: Nike Balance Sheet Analyzed

For Nike's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define Nike's balance sheet line items, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of Nike's important balance sheet line items.

Nike's Short-term Investments.

Nike’s short-term investments ended 2017 at $2.3 billion.  In the next three years, the organization’s short-term investments would fall to $197 million in 2019.  Fortunately, the organization would rebound its short-term investment position ending 2021 at $3.5 billion.  Again, some huge fluctuations in their short-term investments.  Inherently, fluctuations in balance sheet line items indicate risk within the organization.  Not a good trend.

Analyst Grade: B

Inventory.

Nike’s inventory level ended 2017 at $5 billion.  In the next three years, the organization’s inventory would climb substantially, ending 2020 at $7.36 billion.  Fortunately, the organization would be able to reduce its inventory level ending 2021 at $6.8 billion.  As compared to sales, the organization’s inventory level has maintained a relatively tight range, except for 2020.  The tight range in inventory as compared to sales would be a good trend, in my opinion.

Grade: A

Nike 2021 Summary Balance Sheet

2021

2020 2019 2018

2017

Cash

                       9,889

                   8,348                    4,466                    4,249

                   3,808

Short Term Investment

                       3,587

                      439                       197                       996

                   2,371

Account Receivable

                       4,463

                   2,749                    4,272                    3,498

                   3,677

Inventory

                       6,854

                   7,367                    5,622                    5,261

                   5,055

Other                         -                         -                         -                         -
Current Assets

                   26,291

               20,556                16,525                15,134

               16,061

Net PPE

                       4,904

                   4,866                    4,744                    4,454

                   3,989

Goodwill

                          242

                      223                       154                       154

                      139

Other                         -                         -                         -                         -
Total Assets

                   37,740

               31,342                23,717                22,536

               23,259

Accounts Payable

                       2,836

                   2,248                    2,612                    2,279

                   2,048

Accrued Expense

                       6,063

                   5,184                    5,010                    3,269

                   3,011

Accrued Taxes

                          306

                      156                       229                       150

                        84

Notes Payable

                              2

                      248                           9                       336

                      325

LT Debt - Current                              -

                          3

                          6                           6

                          6

Other                         -                         -                         -                         -
Total Current Liabilities

                       9,674

                   8,284                    7,866                    6,040

                   5,474

LT Debt

                       9,413

                   9,406                    3,464                    3,468

                   3,471

Other                         -                         -                         -                         -
Total Liabilities

                   24,973

               23,287                14,677                12,724

               10,852

Common Stock

                       9,968

                   8,302                    7,163                    6,384

                   8,638

Treasury                              -                         -                         -                         -                         -
Retained Earnings

                       3,179

                    (191)                    1,643                    3,517

                   3,979

Other                         -                         -                         -                         -
Total Equity

                   12,767

                 8,055                  9,040                  9,812

               12,407

Total Equity & Liability

                   37,740

               31,342                23,717                22,536

               23,259

 

Section 3: Nike Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Nike.  In reviewing each of Nike's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Nike's Important Financial ratios. 

Nike Current Ratio:

Nike’s current ratio ranged from 2.1 to 2.93 over the last five years.  Typically, most multinational organizations keep a current ratio of about .8 to 1.3.  In comparison, the organization seems to have a substantial amount of current assets as compared to current liabilities.  This would be considered a bad trend.  A better strategy would be to maintain a current ratio of about 1.0 or even slightly less.

Analyst Grade: B

Nike Total Asset Turnover:

Nike’s total asset turnover ended 2017 at 1.48.  In the next two years, the organization would improve its total asset turnover ending 2019 at 1.65.  This means that the firm generated more revenues with less total assets.  Unfortunately, in the next two years, the company ended 2021 at 1.18.  This means that the organization systematically reduced its total asset utilization.  This would be a bad trend, in my opinion.

Analyst Grade: B-

Nike 2021 Liquidity Ratios

Ratios

2021

2020 2019 2018

2017

Current Ratio

                          2.72

                   2.48

Cash Ratio

                          1.39

                   1.06

Quick Ratio

                          2.01

                   1.59

Net Working Capital

                      16,617

               12,272

Nike 2021 Asset Utilization

Ratios

2021

2020 2019 2018

2017

Total Asset Turnover

                          1.18

                   1.19

Fixed Asset Turnover

                          9.08

                   7.69

Days Sales Outstanding

                        29.55

                 34.26

Inventory Turnover (Using Sales)

                          6.26

                   5.76

Inventory Turnover (Using COGS)

                          3.46

                   3.26

Accounts Receivable Turnover

                        12.35

                 10.65

Working Capital Turnover

                          2.68

                   3.05

AP Turnover

                          9.47

                   9.43

Average Days Inventory

                      105.60

               112.02

Average Days Payable

                        38.56

                 38.72

Nike 2021 Profitability Ratios

Ratios

2021

2020 2019 2018

2017

Return on Assets

15.17%

8.10%

Return on Equity

44.86%

31.52%

Net Profit Margin

12.86%

6.79%

Gross Profit Margin

44.82%

43.42%

Operating Profit Margin

15.54%

7.96%

Basic Earning Power

18.34%

9.50%

ROCE

24.67%

12.91%

Capital Employed

                      28,066

               23,058

ROIC

26.83%

14.78%

Nike 2021 Debt Ratios

Ratios

2021

2020 2019 2018

2017

Debt Ratio

24.95%

30.81%

Debt/Equity

73.74%

119.89%

Times Interest Earned

                        26.42

                 33.44