Nike is one of the world’s largest apparel and footwear suppliers, with a market cap above a quarter of a trillion dollars. In 2021, Nike’s equity capital was worth $12.8 billion, a sharp increase from previous years.
In this post
What is NIKE’s cost of equity?
NIKE’s cost of equity is 8.0%.
What is the weight of equity for NIKE?
Thus, the market value weight for equity is 11,503 / (11,503+1,291) = 89.9%; the weight for debt is 10.1%.
What is NIKE’s largest liability?
NIKE total liabilities for 2021 were $24.973B, a 7.24% increase from 2020. NIKE total liabilities for 2020 were $23.287B, a 58.66% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Annual Total Liabilities (Millions of US $) | |
|---|---|
| 2022 | $25,040 |
| 2021 | $24,973 |
| 2020 | $23,287 |
| 2019 | $14,677 |
How much is NIKE’s debt?
US$9.42b
As you can see below, at the end of February 2021, NIKE had US$9.42b of debt, up from US$3.48b a year ago.
What is NIKE’s debt to equity ratio?
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.
What is cost of equity formula?
Using the capital asset pricing model (CAPM) to determine its cost of equity financing, you would apply Cost of Equity = Risk-Free Rate of Return + Beta × (Market Rate of Return – Risk-Free Rate of Return) to reach 1 + 1.1 × (10-1) = 10.9%.
What is Nike’s rate of return?
Analysis. NIKE’s 1 year price total return is -32.6%.
What is the beta of Nike?
(NKE) Valuation Measures & Financial Statistics.
Stock Price History.
| Beta (5Y Monthly) | 1.02 |
|---|---|
| 52 Week High 3 | 179.10 |
| 52 Week Low 3 | 99.53 |
| 50-Day Moving Average 3 | 110.60 |
| 200-Day Moving Average 3 | 136.61 |
What is Nike’s the risk free rate?
2.37000000%
It is updated daily. The current risk-free rate is 2.37000000%.
Does NIKE have 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 current liabilities?
NIKE total current liabilities for 2022 were $10.73B, a 10.92% increase from 2021. NIKE total current liabilities for 2021 were $9.674B, a 16.78% increase from 2020. NIKE total current liabilities for 2020 were $8.284B, a 5.31% increase from 2019.
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.
What is a good debt to equity ratio?
What is a good debt-to-equity ratio? Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good. This ratio tells us that for every dollar invested in the company, about 66 cents come from debt, while the other 33 cents come from the company’s equity.
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.
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 is NIKE’s debt to equity 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 |
Is NIKE undervalued?
Nike Inc secures a last-minute Real Value of $149.38 per share. The latest price of the firm is $116.07. At this time, the firm appears to be undervalued.
USD 116.07 1.97 1.73%
| Low | Target Price | High |
|---|---|---|
| 140.00 | 184.65 | 202.00 |
What is Apple’s debt to equity ratio?
The debt/equity ratio can be defined as a measure of a company’s financial leverage calculated by dividing its long-term debt by stockholders’ equity. Apple debt/equity for the three months ending June 30, 2022 was 1.63.
What is cost of equity example?
The formula is: CoE = (Next Year’s Dividends per Share/ Current Market Value of Stocks) + Growth Rate of Dividends For example, ABC, inc will pay a dividend of $5 next year. The current market value per share is $25. The expected growth in dividends is 8% or (. 08).
What is equity in business?
Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debts were paid off. We can also think of equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset.