Nike Inc. (NYSE:NKE)

The data reflects the trends in identifiable intangible assets, goodwill, and their combined total over a six-year period ending May 31, 2025. The analysis focuses on the net values reported in millions of US dollars.

Identifiable intangible assets, net

This category shows a slight fluctuating decline over the period. Beginning at $274 million in 2020, the assets decreased marginally in 2021 to $269 million, increased to $286 million in 2022, then progressively declined to $259 million by 2024, maintaining that level into 2025. The overall trend indicates a relatively stable but mildly decreasing net asset base with some year-to-year variability.

Goodwill

Goodwill exhibits a more pronounced increase and subsequent decrease within the examined years. Starting at $223 million in 2020, it rose steadily to $284 million in 2022, marking the peak value. After 2022, goodwill declined to $240 million where it remained through 2024 and 2025. This pattern suggests significant acquisitions or adjustments contributing to goodwill growth until 2022, followed by downward revaluations or divestitures leading to stabilization at a lower amount.

Identifiable intangible assets and goodwill (combined)

The combined total reflects the trends observed in both individual components. Beginning at $497 million in 2020, the total increased to a peak of $570 million in 2022, coinciding with peaks in both goodwill and identifiable intangible assets. Subsequently, it decreased to $499 million by 2024, remaining flat through 2025. This indicates the company's overall intangible asset base expanded until 2022 before contracting somewhat and then stabilizing.

Overall, these data points reveal a period of growth in intangible values up to 2022, particularly driven by increases in goodwill, followed by a phase of asset reduction and stabilization. The trends may denote a strategic shift in asset management, reflecting acquisition activity followed by consolidation or impairment assessments resulting in the observed declines.

The analysis of the financial data over the specified periods reveals several notable trends in both reported and goodwill adjusted figures for total assets and shareholders’ equity.

Total Assets

Reported total assets increased substantially from 31,342 million USD in 2020 to a peak of 40,321 million USD in 2022, representing a strong growth phase. However, this growth was followed by a decline in subsequent years, dropping to 37,531 million USD in 2023 and further decreasing to 36,579 million USD by 2025. The goodwill adjusted total assets exhibit a very similar pattern, starting at 31,119 million USD in 2020, peaking at 40,037 million USD in 2022, and declining steadily to 36,339 million USD by 2025. This parallel trend suggests minimal impact of goodwill adjustments on overall asset valuation trends.

Shareholders' Equity

Reported shareholders' equity shows a marked increase from 8,055 million USD in 2020 to a peak of 15,281 million USD in 2022, nearly doubling across this period. After 2022, equity declined to 14,004 million USD in 2023 and further to 13,213 million USD by 2025. The adjusted equity figures follow a comparable trajectory, rising from 7,832 million USD in 2020 to 14,997 million USD in 2022, before declining each year to settle at 12,973 million USD in 2025. This pattern indicates that while growth in equity was strong initially, recent years reflect a contraction.

Overall, the data suggest a period of robust growth in assets and equity up to 2022, followed by a retrenchment phase extending through to 2025. The consistency between reported and adjusted figures indicates that goodwill adjustments have a limited effect on the evaluation of financial position trends. The decline observed post-2022 merits further investigation to determine causative factors, which may include operational challenges, market conditions, or strategic changes affecting asset base and equity levels.

Total Asset Turnover

The reported total asset turnover shows a slight decline from 1.19 in 2020 to 1.16 in 2022, followed by a notable increase reaching 1.36 in 2023. It remains relatively stable at about 1.35 in 2024 before declining again to 1.27 in 2025. The adjusted total asset turnover follows a similar pattern, starting at 1.20 in 2020, peaking at 1.37 in 2023, and then decreasing to 1.27 in 2025. This indicates periods of improved efficiency in asset utilization around 2023, with a subsequent reduction towards 2025.

Financial Leverage

The reported financial leverage ratio decreases markedly from 3.89 in 2020 to a low of 2.64 in 2022, then stabilizes around 2.64 to 2.77 from 2023 through 2025. The adjusted financial leverage closely mirrors this trend, moving from 3.97 in 2020 down to 2.67 in 2022 and slightly rising to 2.80 by 2025. This downward trend reflects a reduction in reliance on debt or increased equity during the earlier years, followed by a mild increase in leverage in the later periods.

Return on Equity (ROE)

Reported ROE experiences significant volatility, starting at 31.52% in 2020, peaking at 44.86% in 2021, and then gradually decreasing to 24.36% by 2025. The adjusted ROE exhibits a very similar pattern, beginning slightly higher at 32.42% in 2020, peaking at 45.72% in 2021, and declining to 24.81% in 2025. This suggests a strong performance peak in 2021 followed by diminishing returns to shareholders over subsequent years.

Return on Assets (ROA)

Reported ROA increases sharply from 8.10% in 2020 to 15.17% in 2021, maintaining elevated levels around 13.51% to 15.05% through 2024, then dropping significantly to 8.80% in 2025. The adjusted ROA reflects a parallel trend with a peak of 15.27% in 2021 and a decline to 8.86% in 2025. This indicates periods of enhanced operational profitability in 2021 to 2024, with a considerable reduction in asset efficiency and earnings generation in the most recent year.

Overall Insights

The data reveals a phase of improved asset turnover and heightened profitability metrics around 2021 through 2024, coinciding with reduced financial leverage. The peak in ROE and ROA around 2021 suggests strong profitability possibly driven by favorable operating conditions or effective asset usage. However, from 2024 to 2025, there is a consistent decline in these profitability ratios alongside a slight increase in financial leverage and a decrease in asset turnover, which might reflect emerging challenges in generating returns from assets and equity or changes in the company's capital structure.

The data indicates that the total assets of the company experienced growth from the fiscal year ending May 31, 2020, through May 31, 2022, followed by a downward trend through to May 31, 2025. Specifically, reported total assets increased from 31,342 million US dollars in 2020 to a peak of 40,321 million US dollars in 2022, then decreased to 36,579 million US dollars by 2025. Similarly, adjusted total assets followed a comparable trajectory, rising from 31,119 million in 2020 to 40,037 million in 2022 before declining to 36,339 million in 2025.

Concurrently, the total asset turnover ratios, both reported and adjusted, reveal a somewhat inverse movement relative to assets. Ratios remained relatively stable with slight declines from 2020 through 2022, indicating modest decreases in efficiency or asset utilization during asset growth. Specifically, reported total asset turnover decreased from 1.19 in 2020 to 1.16 in 2022; adjusted total asset turnover was slightly higher but followed the same pattern, decreasing from 1.20 to 1.17.

However, from 2022 onwards, asset turnover ratios improved markedly, rising to a peak of 1.36 (reported) and 1.37 (adjusted) in 2023, maintaining elevated levels in 2024 before experiencing a small decline to 1.27 in 2025. This suggests an enhancement in asset utilization efficiency despite the reduction in total assets during the latter period.

Total Assets

Demonstrated a growth phase until 2022 followed by a decline until 2025.

Adjusted Total Assets

Mirrored the trend observed in reported total assets with a similar peak and subsequent decrease.

Total Asset Turnover Ratios

Decreased slightly during asset growth years, then improved significantly post-2022, indicating enhanced efficiency in asset use.

Overall Trend

The company experienced an expansion of asset base initially, which may have led to slight inefficiencies, but subsequently improved asset turnover efficiency during a period of asset contraction, indicating a potentially more optimized asset management approach in the later years.

Total Assets

Reported total assets increased steadily from 31,342 million USD in 2020 to a peak of 40,321 million USD in 2022, followed by a decline to 36,579 million USD by 2025. Adjusted total assets display a similar pattern, rising from 31,119 million USD in 2020 to 40,037 million USD in 2022 before decreasing to 36,339 million USD in 2025. This suggests a period of asset growth through 2022, followed by a contraction or revaluation in the subsequent years.

Shareholders’ Equity

Reported shareholders' equity exhibited significant growth from 8,055 million USD in 2020 to 15,281 million USD in 2022. After peaking, equity declined to 13,213 million USD by 2025. Adjusted shareholders' equity follows a comparable trend, rising from 7,832 million USD in 2020 to 14,997 million USD in 2022, then reducing to 12,973 million USD by 2025. The increase through 2022 may indicate favorable earnings or capital transactions, while the reduction thereafter could reflect dividends, share repurchases, or other equity adjustments.

Financial Leverage

Reported financial leverage decreased from 3.89 in 2020 to 2.64 in 2022, indicating a reduction in leverage or an increase in equity relative to debt. From 2022 onward, leverage remained relatively stable, oscillating slightly between 2.64 and 2.77 through 2025. Adjusted financial leverage shows a similar downward trend from 3.97 in 2020 to 2.67 in 2022, with minor fluctuations afterward, settling at 2.80 by 2025. This stability post-2022 suggests consistent capital structure management with moderate leverage levels over recent years.

The analysis of the reported and goodwill adjusted financial data reveals several key trends and insights over the examined periods.

Shareholders’ Equity

Both the reported and adjusted shareholders’ equity exhibit an overall increasing trend from May 31, 2020, through May 31, 2024, before experiencing a decline in the final period ending May 31, 2025. Reported shareholders’ equity increased from 8,055 million US$ in 2020 to a peak of 15,281 million US$ in 2022, then decreased to 13,213 million US$ by 2025. Adjusted shareholders’ equity follows a similar pattern but with slightly lower values, rising from 7,832 million US$ in 2020 to 14,997 million US$ in 2022, before decreasing to 12,973 million US$ in 2025. This suggests that goodwill adjustments moderately reduce shareholders’ equity but follow the same overall trend.

Return on Equity (ROE)

Reported ROE fluctuates notably over the periods analyzed. Starting at 31.52% in 2020, it rises sharply to 44.86% in 2021, then declines to 36.20% in 2023, before slightly rebounding to 39.50% in 2024 and dropping significantly to 24.36% in 2025. Adjusted ROE closely mirrors this trend with slightly higher values initially, starting at 32.42% in 2020, rising to 45.72% in 2021, then declining to 36.95% in 2023, increasing to 40.17% in 2024, and finally falling to 24.81% in 2025. The consistent difference suggests goodwill adjustments have a modest impact on ROE, particularly in boosting it slightly.

Trend Insights

The peak in both shareholders’ equity and ROE around 2021 and 2022 indicates a period of strong financial performance and effective capital utilization. The subsequent decrease in equity coupled with a decline in ROE in the most recent periods may point to challenges in maintaining profitability and growth, or possibly strategic changes impacting capital structure or goodwill valuation. The consistent patterns between reported and adjusted figures confirm that goodwill adjustments do not materially alter the overall financial performance narrative but refine the equity and profitability measures.

The analysis of the financial data reveals certain key trends and patterns over the six-year period from May 31, 2020, to May 31, 2025.

Total Assets

Both reported and adjusted total assets exhibit an overall upward trend from 2020 through 2022, increasing from $31,342 million and $31,119 million, respectively, to peak values of $40,321 million (reported) and $40,037 million (adjusted) in 2022. After this peak, a decrease is observed in the subsequent years, with reported assets declining to $36,579 million and adjusted assets to $36,339 million by 2025. This suggests a contraction of the asset base following 2022.

Return on Assets (ROA)

The reported and adjusted ROA percentages follow a similar trajectory, showing strong growth from 2020 to 2021, with reported ROA increasing from 8.1% to 15.17% and adjusted ROA from 8.16% to 15.27%. The elevated returns are sustained at roughly the same level through 2022. From 2023 onward, both reported and adjusted ROA decline gradually, registering 13.51% and 13.61% respectively in 2023. The ROA percentages then rebound somewhat in 2024 to approximately 15%, before declining sharply in 2025 to 8.8% (reported) and 8.86% (adjusted).

Comparative Analysis of Reported Versus Adjusted Metrics

The adjusted figures, which presumably exclude goodwill, closely track the reported figures across all years in both asset values and ROA. The minor differences between reported and adjusted data indicate that goodwill does not substantially distort the overall asset base or return metrics.

Insight Summary

The data indicate an initial phase of asset growth and improved profitability up to 2022, followed by an asset reduction and fluctuating but ultimately declining returns on assets by 2025. The partial recovery in ROA in 2024 suggests some operational improvements or one-off factors positively impacting profitability before the decline in 2025. The slight discrepancies between reported and adjusted figures reinforce the consistency of financial performance independent of goodwill adjustments.