A solvency ratio calculated as total debt divided by total assets. Nike Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.
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What is Nike’s solvency ratio?
Nike Inc’s solvency score is 70/100. We take all the information about a company’s solvency (such as how easily a company can pay interest on its outstanding debt, how much cash it has, the amount of debt, and more) and consolidate it into one single number – the solvency score.
Does Nike have good liquidity?
With a market valuation of US$123.0b, NKE is a safe haven in times of market uncertainty due to its strong balance sheet. In times of low liquidity in the market, these firms won’t be left high and dry. They are also relatively unaffected by increases in interest rates.
What is Nike’s debt to assets ratio?
Total debt equals current debt plus long-term debt minus cash equivalents. To understand the degree of financial leverage a company has, shareholders look at the debt ratio. Considering Nike’s $34.84 billion in total assets, the debt-ratio is at 0.27.
What is Nike’s leverage ratio?
NIKE’s financial leverage last quarter was 2.6x. NIKE’s financial leverage for fiscal years ending May 2018 to 2022 averaged 2.9x. NIKE’s operated at median financial leverage of 2.6x from fiscal years ending May 2018 to 2022.
Does NIKE have long term debt?
NIKE long term debt for 2022 was $8.92B, a 5.24% decline from 2021. NIKE long term debt for 2021 was $9.413B, a 0.07% increase from 2020. NIKE long term debt for 2020 was $9.406B, a 171.54% increase from 2019.
How do you compare solvency between two companies?
Summary. The solvency ratio helps us assess a company’s ability to meet its long-term financial obligations. To calculate the ratio, divide a company’s after-tax net income – and add back depreciation– by the sum of its liabilities (short-term and long-term).
Is NIKE a capital intensive company?
1 Nike’s capital structure has high equity capital relative to debt, with a debt-to-equity ratio of 0.66, though this figure rose sharply in 2020 due to store closures. 2 The company’s enterprise value grew rapidly in the five years leading up to 2021, driven almost entirely by the appreciating value of its equity.
What is NIKE’s brand equity?
Nike has retained the title of the world’s most apparel brand for the 7th consecutive year, despite recording a 13% brand value drop to US$30.4 billion. The brand still maintains a considerable lead over second-ranked Gucci, with a brand value of US$15.6 billion, down 12% from 2020.
Is NIKE undervalued?
Nike Inc secures a last-minute Real Value of $149.51 per share. The latest price of the firm is $117.04. At this time, the firm appears to be undervalued.
2022-09-02.
| Low | Estimated Value | High |
|---|---|---|
| 113.97 | 116.46 | 118.95 |
What are NIKE’s weaknesses?
Nike’s Weaknesses – Internal Strategic Factors
- Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
- Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing.
Who is NIKE’s competition?
Nike competitors include adidas, New Balance, Skechers U.S.A., Steve Madden and ASICS America.
How is NIKE doing compared to its competitors?
Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 2 quarter 2022 year on year by -0.89 %, despite revenue increase by most of its competitors of 5.14 %, recorded in the same quarter. With net margin of 11.76 % company achieved higher profitability than its competitors.
What type of bond is NIKE?
A vertical stack of three evenly spaced horizontal lines.
NIKE Inc. DL-Notes 2020(20/30)Bond.
| ISIN | US654106AK94 |
|---|---|
| Coupon | 2.850% |
| Denomination | 1000 |
| Quotation Type | |
| Payment Type | regular interest |
What is NIKE’s short term debt?
Liabilities & Shareholders’ Equity
| Item Item | 31-May-2021 | 31-Aug-2021 |
|---|---|---|
| Short Term Debt Short Term Debt | 469M | 477M |
| Current Portion of Long Term Debt Current Portion of Long Term Debt | – | – |
| Accounts Payable Accounts Payable | 2.84B | 2.14B |
| Accounts Payable Growth Accounts Payable Growth | – | -24.72% |
What percent of NIKE is owned by institutions?
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don’t have many shares in NIKE. Our data suggests that Philip Knight, who is also the company’s Top Key Executive, holds the most number of shares at 17%.
What is NIKE’s quick ratio?
Nike has a quick ratio of 1.84. It generally indicates good short-term financial strength.
How much cash does NIKE have on hand?
NIKE cash on hand for 2022 was $12.997B, a 3.55% decline from 2021. NIKE cash on hand for 2021 was $13.476B, a 53.36% increase from 2020. NIKE cash on hand for 2020 was $8.787B, a 88.44% increase from 2019.
What is NIKE’s debt ratio 2021?
Compare NKE With Other Stocks
| NIKE Debt/Equity Ratio Historical Data | ||
|---|---|---|
| Date | Long Term Debt | Shareholder’s Equity |
| 2021-08-31 | $23.57B | $14.34B |
| 2021-05-31 | $24.97B | $12.77B |
| 2021-02-28 | $24.25B | $11.93B |
How do you know if a company is solvent?
The solvency of a business is assessed by looking at its balance sheet and cash flow statement. The balance sheet of the company provides a summary of all the assets and liabilities held. A company is considered solvent if the realizable value of its assets is greater than its liabilities.
What is solvency with example?
Solvency definition
An example of a business with solvency is a business that can pay all its bills. An example of something with solvency is water. noun. The ability to pay debts, specifically interest payments on debt, when they are due. Insolvency is the opposite of solvency.