Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Nike Inc., balance sheet: goodwill and intangible assets

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Identifiable intangible assets, net	259)	274)	286)	269)	274)	283)
Goodwill	240)	281)	284)	242)	223)	154)
Identifiable intangible assets and goodwill	499)	555)	570)	511)	497)	437)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

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Item	Description	The company
Identifiable intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Nike Inc. identifiable intangible assets, net decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Nike Inc. goodwill decreased from 2022 to 2023 and from 2023 to 2024.
Identifiable intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Nike Inc. identifiable intangible assets and goodwill decreased from 2022 to 2023 and from 2023 to 2024.

Nike Inc., adjustments to financial statements

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Adjustment to Total Assets
Total assets (as reported)	38,110)	37,531)	40,321)	37,740)	31,342)	23,717)
Less: Goodwill	240)	281)	284)	242)	223)	154)
Total assets (adjusted)	37,870)	37,250)	40,037)	37,498)	31,119)	23,563)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	14,430)	14,004)	15,281)	12,767)	8,055)	9,040)
Less: Goodwill	240)	281)	284)	242)	223)	154)
Shareholders’ equity (adjusted)	14,190)	13,723)	14,997)	12,525)	7,832)	8,886)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Nike Inc., Financial Data: Reported vs. Adjusted

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Nike Inc., adjusted financial ratios

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Total Asset Turnover
Reported total asset turnover	1.35	1.36	1.16	1.18	1.19	1.65
Adjusted total asset turnover	1.36	1.37	1.17	1.19	1.20	1.66
Financial Leverage
Reported financial leverage	2.64	2.68	2.64	2.96	3.89	2.62
Adjusted financial leverage	2.67	2.71	2.67	2.99	3.97	2.65
Return on Equity (ROE)
Reported ROE	39.50%	36.20%	39.57%	44.86%	31.52%	44.57%
Adjusted ROE	40.17%	36.95%	40.31%	45.72%	32.42%	45.34%
Return on Assets (ROA)
Reported ROA	14.96%	13.51%	14.99%	15.17%	8.10%	16.99%
Adjusted ROA	15.05%	13.61%	15.10%	15.27%	8.16%	17.10%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Nike Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Nike Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Nike Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Nike Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Nike Inc., Financial Ratios: Reported vs. Adjusted

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	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Total assets	38,110)	37,531)	40,321)	37,740)	31,342)	23,717)
Activity Ratio
Total asset turnover¹	1.35	1.36	1.16	1.18	1.19	1.65
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Adjusted total assets	37,870)	37,250)	40,037)	37,498)	31,119)	23,563)
Activity Ratio
Adjusted total asset turnover²	1.36	1.37	1.17	1.19	1.20	1.66

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 51,362 ÷ 38,110 = 1.35

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 51,362 ÷ 37,870 = 1.36

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Nike Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	38,110)	37,531)	40,321)	37,740)	31,342)	23,717)
Shareholders’ equity	14,430)	14,004)	15,281)	12,767)	8,055)	9,040)
Solvency Ratio
Financial leverage¹	2.64	2.68	2.64	2.96	3.89	2.62
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	37,870)	37,250)	40,037)	37,498)	31,119)	23,563)
Adjusted shareholders’ equity	14,190)	13,723)	14,997)	12,525)	7,832)	8,886)
Solvency Ratio
Adjusted financial leverage²	2.67	2.71	2.67	2.99	3.97	2.65

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 38,110 ÷ 14,430 = 2.64

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 37,870 ÷ 14,190 = 2.67

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Nike Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Shareholders’ equity	14,430)	14,004)	15,281)	12,767)	8,055)	9,040)
Profitability Ratio
ROE¹	39.50%	36.20%	39.57%	44.86%	31.52%	44.57%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Adjusted shareholders’ equity	14,190)	13,723)	14,997)	12,525)	7,832)	8,886)
Profitability Ratio
Adjusted ROE²	40.17%	36.95%	40.31%	45.72%	32.42%	45.34%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 5,700 ÷ 14,430 = 39.50%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 5,700 ÷ 14,190 = 40.17%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Nike Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Total assets	38,110)	37,531)	40,321)	37,740)	31,342)	23,717)
Profitability Ratio
ROA¹	14.96%	13.51%	14.99%	15.17%	8.10%	16.99%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Adjusted total assets	37,870)	37,250)	40,037)	37,498)	31,119)	23,563)
Profitability Ratio
Adjusted ROA²	15.05%	13.61%	15.10%	15.27%	8.16%	17.10%

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 5,700 ÷ 38,110 = 14.96%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 5,700 ÷ 37,870 = 15.05%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Nike Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Nike Inc. (NYSE:NKE)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Nike Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Nike Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)