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.
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What does it look like NIKE did during 2020 as far as debt financing?
According to the Nike’s most recent financial statement as reported on July 24, 2020, total debt is at $9.66 billion, with $9.41 billion in long-term debt and $251.00 million in current debt. Adjusting for $8.35 billion in cash-equivalents, the company has a net debt of $1.31 billion.
Does NIKE have a lot of debt?
NIKE long term debt from 2010 to 2022. Long term debt can be defined as the sum of all long term debt fields.
Compare NKE With Other Stocks.
| NIKE Annual Long Term Debt (Millions of US $) | |
|---|---|
| 2020 | $9,406 |
| 2019 | $3,464 |
| 2018 | $3,468 |
| 2017 | $3,471 |
What was NIKE’s interest expense in 2020?
Volume 4,007,255
| Fiscal year is June-May. All values USD Millions. | 2022 | 2020 |
|---|---|---|
| Interest Expense Growth | 1.04% | 16.13% |
| Gross Interest Expense | 292 | 144 |
| Interest Capitalized | – | – |
| Pretax Income | 6,651 | 2,887 |
What did NIKE do in 2020?
Nike reported an unexpected quarterly net loss and a sales decline of 38% year-over-year. Digital sales soared 75%, representing about 30% of total revenue, as shoppers flocked to Nike’s website for sneakers and workout gear. But expenses for shipping and returns also put more pressure on the company’s profits.
What are Nikes long term debt?
According to the Nike’s most recent financial statement as reported on January 5, 2021, total debt is at $9.45 billion, with $9.41 billion in long-term debt and $41.00 million in current debt. Adjusting for $8.63 billion in cash-equivalents, the company has a net debt of $816.00 million.
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.
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 |
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 was NIKE’s debt ratio in 2019?
NIKE’s total debt decreased in 2019 ($3.853 billion, -0.8%), 2021 ($12.813 billion, -1.6%) and 2022 ($12.627 billion, -1.5%) and increased in 2018 ($3.885 billion, +2.2%) and 2020 ($13.015 billion, +237.8%).
Why has Nike’s revenue decreased 2020?
Nike’s sales declined year-over-year for two consecutive quarters in 2020, as the COVID-19 pandemic shut down stores. Revenue growth bounced back in the fiscal second quarter, however, when the athletic-apparel company reported record quarterly revenue of $11.2 billion in a period that included Black Friday sales.
What is Nike’s current financial situation?
–(BUSINESS WIRE)– NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal 2021 fourth quarter and full year ended May 31, 2021. Fourth quarter reported revenues were $12.3 billion, up 96 percent compared to prior year and increasing 21 percent compared to the fourth quarter of 2019.
How many shoes did Nike sell in 2020?
| Characteristic | Footwear | Equipment |
|---|---|---|
| 2020 | 9,329 | 516 |
| 2019 | 10,045 | 597 |
| 2018 | 9,322 | 595 |
| 2017 | 9,684 | 646 |
Why did Nike lose money in 2018?
Nike just lost about $3.75 billion in market cap after announcing free agent NFL quarterback Colin Kaepernick as the new face of its “Just Do It” ad campaign. It’s the 30th anniversary of the iconic TV and print spots.
Did Nike make a profit in 2020?
NIKE annual gross profit for 2020 was $16.241B, a 7.06% decline from 2019.
Why did Nikes revenue increase?
Nike is focusing on direct-to-consumer sales, cutting wholesale accounts and investing more in its own stores, sites and apps. That’s brought it closer to its customers, Donahoe said. Advertising and promotions expenses spiked 20 per cent in the quarter to $854 million.
Is NIKE highly leveraged?
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. Looking back at the last five years, NIKE’s financial leverage peaked in May 2020 at 3.9x.
What type of financing does NIKE use?
Debt Capital
Debt financing is generally senior to equity financing in the event of liquidation, though it is often acquired at a lower cost by firms with sufficient creditworthiness. Nike’s debt is rated AA- by Standard & Poors and A1 by Moody’s. These ratings represent high or upper-medium grade credit, respectively.
What is NIKE’s total liabilities?
Total liabilities can be defined as the total value of all possible claims against the corporation. NIKE total liabilities for the quarter ending May 31, 2022 were $23.768B, a 2% decline year-over-year. NIKE total liabilities for 2021 were $24.973B, a 7.24% increase from 2020.
What is Nike’s biggest problem?
Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.
What are Nike’s biggest threats?
Threats. For threats, Nike has to look at all directions: tax, market competition, and product counterfeiting.