Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Nike Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Federal	782)	430)	231)	328)	(109)	74)
State	201)	184)	98)	134)	81)	56)
United States	983)	614)	329)	462)	(28)	130)
Foreign	514)	634)	926)	857)	756)	608)
Current	1,497)	1,248)	1,255)	1,319)	728)	738)
Federal	(422)	(162)	(522)	(371)	(231)	(33)
State	(61)	(25)	(16)	(34)	(47)	(9)
United States	(483)	(187)	(538)	(405)	(278)	(42)
Foreign	(14)	70)	(112)	20)	(102)	76)
Deferred	(497)	(117)	(650)	(385)	(380)	34)
Income tax expense	1,000)	1,131)	605)	934)	348)	772)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Nike Inc. current decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Nike Inc. deferred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Nike Inc. income tax expense increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Nike Inc., effective income tax rate (EITR) reconciliation

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State taxes, net of federal benefit	1.40%	1.50%	1.40%	1.30%	0.80%	1.20%
Foreign earnings	-2.50%	1.70%	-1.80%	0.20%	5.90%	-2.10%
Subpart F deferred tax benefit	0.00%	0.00%	-4.70%	0.00%	0.00%	0.00%
Foreign-derived intangible income benefit	-4.80%	-6.10%	-4.10%	-3.70%	-8.10%	0.00%
Excess tax benefits from share-based compensation	-0.50%	-1.10%	-4.90%	-4.50%	-7.20%	-3.60%
Income tax audits and contingency reserves	1.80%	1.00%	1.50%	1.50%	-1.40%	0.00%
U.S. research and development tax credit	-2.10%	-1.20%	-1.00%	-0.90%	-1.80%	-1.10%
Other, net	0.60%	1.40%	1.70%	-0.90%	2.90%	0.70%
Effective income tax rate	14.90%	18.20%	9.10%	17.70%	20.20%	16.10%

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).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Nike Inc. effective income tax rate increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Nike Inc., components of deferred tax assets and liabilities

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Inventories	69)	79)	136)	78)	84)	66)
Sales return reserves	125)	89)	109)	100)	115)	128)
Deferred compensation	347)	321)	313)	350)	295)	271)
Stock-based compensation	290)	261)	195)	175)	168)	156)
Reserves and accrued liabilities	113)	144)	145)	96)	120)	101)
Operating lease liabilities	474)	511)	508)	499)	491)	—)
Intangibles	236)	255)	275)	187)	—)	—)
Capitalized research and development expenditures	878)	548)	353)	349)	189)	—)
Net operating loss carry-forwards	21)	15)	8)	15)	21)	81)
Subpart F deferred tax	409)	374)	313)	—)	—)	—)
Foreign tax credit carry-forwards	—)	—)	103)	—)	—)	—)
Other	214)	183)	148)	178)	127)	125)
Deferred tax assets	3,176)	2,780)	2,606)	2,027)	1,610)	928)
Valuation allowance	(29)	(22)	(19)	(12)	(26)	(88)
Deferred tax assets after valuation allowance	3,147)	2,758)	2,587)	2,015)	1,584)	840)
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(131)	(186)	(146)	(182)	(165)	(235)
Property, plant and equipment	(290)	(276)	(247)	(255)	(232)	(188)
Right-of-use assets	(397)	(441)	(437)	(431)	(423)	—)
Other	(9)	(56)	(92)	(14)	(32)	(41)
Deferred tax liabilities	(827)	(959)	(922)	(882)	(852)	(464)
Net deferred tax asset (liability)	2,320)	1,799)	1,665)	1,133)	732)	376)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Nike Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets after valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Nike Inc. deferred tax assets after valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Nike Inc. net deferred tax asset (liability) increased 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: Noncurrent deferred tax assets, net	2,320)	1,799)	1,665)	1,133)	732)	376)
Total assets (adjusted)	35,790)	35,732)	38,656)	36,607)	30,610)	23,341)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	14,430)	14,004)	15,281)	12,767)	8,055)	9,040)
Less: Net deferred tax assets (liabilities)	2,320)	1,799)	1,665)	1,133)	732)	376)
Shareholders’ equity (adjusted)	12,110)	12,205)	13,616)	11,634)	7,323)	8,664)
Adjustment to Net Income
Net income (as reported)	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Add: Deferred income tax expense (benefit)	(497)	(117)	(650)	(385)	(380)	34)
Net income (adjusted)	5,203)	4,953)	5,396)	5,342)	2,159)	4,063)

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
Net Profit Margin
Reported net profit margin	11.10%	9.90%	12.94%	12.86%	6.79%	10.30%
Adjusted net profit margin	10.13%	9.67%	11.55%	11.99%	5.77%	10.39%
Total Asset Turnover
Reported total asset turnover	1.35	1.36	1.16	1.18	1.19	1.65
Adjusted total asset turnover	1.44	1.43	1.21	1.22	1.22	1.68
Financial Leverage
Reported financial leverage	2.64	2.68	2.64	2.96	3.89	2.62
Adjusted financial leverage	2.96	2.93	2.84	3.15	4.18	2.69
Return on Equity (ROE)
Reported ROE	39.50%	36.20%	39.57%	44.86%	31.52%	44.57%
Adjusted ROE	42.96%	40.58%	39.63%	45.92%	29.48%	46.90%
Return on Assets (ROA)
Reported ROA	14.96%	13.51%	14.99%	15.17%	8.10%	16.99%
Adjusted ROA	14.54%	13.86%	13.96%	14.59%	7.05%	17.41%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Nike Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
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 and 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 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Nike Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Nike Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 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)
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Profitability Ratio
Net profit margin¹	11.10%	9.90%	12.94%	12.86%	6.79%	10.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,203)	4,953)	5,396)	5,342)	2,159)	4,063)
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Profitability Ratio
Adjusted net profit margin²	10.13%	9.67%	11.55%	11.99%	5.77%	10.39%

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 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,700 ÷ 51,362 = 11.10%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 5,203 ÷ 51,362 = 10.13%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Nike Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues	51,362)	51,217)	46,710)	44,538)	37,403)	39,117)
Adjusted total assets	35,790)	35,732)	38,656)	36,607)	30,610)	23,341)
Activity Ratio
Adjusted total asset turnover²	1.44	1.43	1.21	1.22	1.22	1.68

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 ÷ 35,790 = 1.44

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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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	35,790)	35,732)	38,656)	36,607)	30,610)	23,341)
Adjusted shareholders’ equity	12,110)	12,205)	13,616)	11,634)	7,323)	8,664)
Solvency Ratio
Adjusted financial leverage²	2.96	2.93	2.84	3.15	4.18	2.69

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
= 35,790 ÷ 12,110 = 2.96

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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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,203)	4,953)	5,396)	5,342)	2,159)	4,063)
Adjusted shareholders’ equity	12,110)	12,205)	13,616)	11,634)	7,323)	8,664)
Profitability Ratio
Adjusted ROE²	42.96%	40.58%	39.63%	45.92%	29.48%	46.90%

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 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 5,203 ÷ 12,110 = 42.96%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Nike Inc. adjusted ROE improved from 2022 to 2023 and 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	5,203)	4,953)	5,396)	5,342)	2,159)	4,063)
Adjusted total assets	35,790)	35,732)	38,656)	36,607)	30,610)	23,341)
Profitability Ratio
Adjusted ROA²	14.54%	13.86%	13.96%	14.59%	7.05%	17.41%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,203 ÷ 35,790 = 14.54%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Nike Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Nike Inc. (NYSE:NKE)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Nike Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Nike Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)