Nike Financial Report

Nike Financial Report: Financial Ratios and Financial Statements Analyzed

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 2023 Beginner's Guide to Financial Analysis by Paul Borosky, MBA.

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Nike 2022 Financial Report by Paul Borosky, MBA

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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 2022 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 in 2018 were $36.3 billion.  In 2022, their revenues were $46.7 billion.  This is an average growth rate annually of about 6.8% for the last five years.  This trend indicates the organization has entered the mature phase of its business cycle.  Further, the company is doing an excellent job of continually and systematically growing revenues, except for a dip in 2020.

Analyst Grade: A

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 Cash.

Nike's cash holding in 2018 was $4.2 billion, or 11.7% of sales.  In 2022, their cash position was $8.5 billion, or 18.4% of sales.  This trend indicates that the organization has felt the need to increase its cash position as compared to sales year-over-year.  This increase lowers the organization's ability to fully utilize its cash for growth or other revenue-generating opportunities.  From an investor's perspective, this is not a good trend.

Analyst Grade: B

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 was 2.7 in 2021.  As of 2022, their current ratio was 2.63.  This trend indicates the organization has lowered its current asset holdings as compared to current liabilities.  From an investor perspective, this trend should be considered good.  However, the organization is still holding an excessive amount of current assets as compared to current liabilities.  A better strategy would be for the organization to reduce its current ratio to closer the 1.0.

Analyst Grade: C

Nike Total Asset Turnover:

Nike's total asset turnover in 2019 was 1.65.  In 2022, their total asset turnover was 1.16.  This trend indicates the organization is continually underutilizing total assets under management.  This trend should be concerning from an investor's perspective.  To mitigate this issue, the organization should optimize operations to better align assets with revenue generation.

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