NIKE, Inc.

NIKE, Inc. maintains a strong capital structure with a total equity of $14.09 billion and a total debt of $7.03 billion, resulting in a debt-to-equity ratio of 0.57. The company's liquidity is supported by $6.66 billion in cash and equivalents, and a current ratio of 2.14, indicating a solid ability to meet short-term obligations. In terms of profitability, NIKE, Inc. reported a net income of $2.04 billion for the period, with a return on equity of 14.47% and a return on assets of 5.5%. These figures suggest that the company is generating strong returns for its shareholders, although the return on assets is relatively modest compared to the return on equity, indicating that the company is leveraging its equity effectively. The company's business is primarily concentrated in the Real Estate Investment & Services sector, with a focus on Real Estate Investment Trusts. The financial data does not provide a detailed breakdown of geographic segments, but the company's global presence is evident from its extensive operations and revenue streams. Over the past five years and eight quarters, NIKE, Inc. has demonstrated a mixed growth trajectory. While the company's revenues have remained relatively stable, with a slight increase from $35.21 billion in 2025 to $35.43 billion in 2026, the gross profit has shown a decline from $15.32 billion to $14.52 billion. This suggests that the company is facing challenges in maintaining its gross margins, which could be due to increased competition or rising costs. The risk assessment for NIKE, Inc. highlights medium liquidity and dilution risks. The company's net cash position is negative after subtracting total debt, which could pose a challenge in maintaining financial flexibility. Additionally, the source documents mention dilution or offering risk, indicating that the company may be considering issuing new shares, which could dilute existing shareholders' equity. Recent filings and financial statements show that NIKE, Inc. has been actively managing its cash flows. The company reported a net increase in cash and equivalents of $6.66 billion as of the end of the period, despite a net decrease in cash and equivalents of $804 million for the nine months ended February 28, 2026. The company has also been repurchasing common stock, with a repurchase of $146 million in the nine months ended February 28, 2026, compared to $2,786 million in the same period in 2025. This indicates a strategic approach to capital allocation and shareholder returns.