Nike Financial Performance From Time to TimeNike Financial

Nike Financial Performance From Time to Time – Nike is one of the biggest companies in the world. Historically, the company that has the slogan “Just Do It” was founded by bill knight and Bill Bowerman on January 25th, 1964 with the name “Blue Ribbon Sports”. In 1971, its name was changed to “Nike”.  In the beginning, they imported the products from Japan because of the cheaper price than those produced in the USA.  Now, Officially, this company has headquarters in Beaverton, Oregon, Portland, the United States of America with a total of employees of around 76 thousand people.

Based on the majority shareholders until August 2023, There are 10 Biggest of ownership in Nike. The 10 largest owners of Nike are The Vanguard Group, Inc. with percentage of ownership around (8.39%), BlackRock Fund Advisors (5.13%), SSgA Funds Management, Inc. (4.51%), Wellington Management Co. LLP (2.34%), Geode Capital Management LLC (1.87%), Alliance Bernstein LP (1.83%), Capital Research & Management Co. (1.59%), Fidelity Management & Research Co. (1.24%), Northern Trust Investments, Inc. (1.10%), and Norges Bank Investment Management (0.94%).

Nike Financial Performance From Time to Time- Nike, Converse, and Air Jordan

Culturally, the name of Nike comes from the mythology  Goddess in Greece. Nike symbolizes the goddess of victory and success.  Maybe this name can give good fortune to the American-based apparel company. Some of their products can lead the market and can beat the competitors for a while.

Most people in the world know Nike, particularly in the sport industries. Nike has long experience and is well-known as a sports apparel company. It produces, markets, and distributes sports apparel. At that time, some famous athletes, clubs, and organizations used their products.  

Nike Financial Performance From Time to Time- Nike Shoes Models

Some Nike superstars that had endorsed by Nike are Cristiano Ronaldo, Neymar, Kylian Mbappé, Roger Federer, Rafael Nadal, Michael Jordan, LeBron James, and other famous athletes from diverse kinds of sports.

In football clubs, Nike makes a partnership with some famous football club that has a million fan bases across the globe. Barcelona, Liverpool, Arsenal, and Inter Milan are some famous football clubs that had contracts on their jersey and accessories to Nike. In basketball, Nike had won a contract with the NBA for the production of all NBA jerseys for basketball teams.

Nike Financial Performance From Time to Time- Nike with Liverpool and Barcelona

Along with the Business Development of Nike from time, Nike had launched some brands and some subsidiaries company, namely Converse and Jordan Brand. Basically, some Nike products are Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Nike Skateboarding, and Nike CR7.  Nike acquire Converse in 2003 at a cost of 300 million US dollars. Meanwhile, Jordan Brand is the successful partnership between Nike and Michael Jordan. Michael Jordan is a legendary NBA basketball player with 6-time championships with Chicago Bulls. Until now, Jordan Brand is predominantly focused on basketball sports and has many products on it. Meanwhile, Converse has some subsidiaries brand i.e. the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell.


The assets, Liabilities, and Equities of Nike

YearsAssetsLiabilitiesEquities
Billions US DollarsBillions US DollarsBillions US Dollars
20005.82.73.1
20015.82.43.4
20026.42.63.8
20036.82.93.9
20047.93.24.7
20058.73.15.6
20069.83.66.2
200710.63.67
200812.44.67.8
200913.24.68.6
201014.44.79.7
201114.95.19.8
201215.45.110.3
201317.56.511
201418.57.710.8
201521.68.912.7
201621.39.112.2
201723.210.812.4
201822.512.79.8
201923.714.79
202031.323.38
202137.72512.7
202240.325.115.2
202337.523.514
Source : Nike Annual Report, 2000-2023

Financially, from its founding until its operations in 2023, Nike can perform positive performance. It can be looked at the Balance Sheets. In 2000, the assets of Nike were just 5.8 billion US Dollars, and its Equities were 3.1 billion US Dollars.  Meanwhile, in 2023, the assets become 37.5 billion US Dollars and equities become 14 billion US Dollars.  It means that assets can grow more than 6 times from 2000 to 2023.


The Revenue and Net Income of Nike

YearsRevenueNet Income
Billions US DollarBillions US Dollar
20008.90.57
20019.40.58
20029.80.66
200310.60.74
200412.20.94
200513.71.2
200614.91.3
200716.31.4
200818.61.8
200919.11.4
2010191.9
201120.82.1
201223.32.2
201325.32.4
201427.72.6
201530.63.2
201632.33.7
201734.34.2
201836.31.9
201939.14
202037.42.5
202144.55.7
202246.76
202351.25
Source : Nike Annual Report, 2000-2023

Based on the business performance from time to time from 2000 to 2023, the revenue and net income also showed a positive impact. The revenue of Nike in 2000 was just 8.9 billion US Dollars, with Net Income reaching 570 million US Dollars. In 2023, the revenue of Nike becomes 51.5 billion US Dollars and the Net income reached 5 billion US Dollars. Overall, the revenue can grow more than 4 times and Income can grow more than 9 times from 2000 to 2023.

Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), and Net Profit Margin (NPM) of Nike from 2000 to 2023

Financially, some financial ratios can be measured from the balance sheets and income statements. In this case, we measure Debt to equity ratio (DER), Debt to asset ratio (DAR), and Net profit margin (NPM). Financially, the average value of Nike’s Debt equity ratio (DER) from 2001 to 2023 is about 0.94. Basically, it means that the percentage of liabilities is about 94 % of the equities or it showed that every one dollar of equity contains is 0.9 dollars of liabilities.

Meanwhile, the average value of Nike’s Debt to asset ratio (DAR) is about 0.45. This value means that the percentage of liabilities is about 40% of the assets, or it can be described that every one dollar of asset contains 0.45 US dollars of liabilities. Overall, the value of DER and DAR can describe the financial structure of the company. the smaller value of DER and DAR, the better and healthier the company.

In the other variable from the income statement from 2001 to 2023, the average value of the Net profit margin (NPM) is about 0.091. Basically, this value means that the percentage of net income is about 8.8% percent of the revenue. In another interpretation, it can mean that every 1 US Dollar of revenue can become 0.09 US dollars of net income. Basically, Net profit margin (NPM) can describe the efficiency of their business. The greater value of NPM can show the more efficiency of the company in doing their business.


Bibliography of Nike Financial From Time to Time

Nike. 2023. Annual Report. Accessed via https://investors.nike.com/investors/news-events-and-reports/default.aspx  on April 2nd, 2023.

Wikipedia. 2023. Nike. Accessed via https://en.wikipedia.org/wiki/Nike,_Inc  on April 2nd, 2023

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