Question

Describe Nike's Inc. Income Statement, there balance sheet, cash flow and there shareholders equity. Please the information has to be from 2019 Sec 10-K

Answer 1

Hi there,

Here is my analysis on the Financial Statements of NIKE Inc. on 2019 sec 10 -K

Here is the profit loss statement,balance sheet and its analysis ended 31-05-2019 of Nike Inc.

Particulars	FINANCIAL HISTORY
$(Millions)
Year Ended May 31,2019
Revenues	$	39,117
Gross profit	17,474
Gross margin	44.7	%
Net income(1)	4,029
Earnings per common share:(1)
Basic	2.55
Diluted	2.49
Weighted average common shares outstanding	1,579.70
Diluted weighted average common shares outstanding	1,618.40
Cash dividends declared per common share	0.86
Cash provided by operations	5,903
At May 31,2019
Cash and equivalents	$	4,466
Short-term investments	197
Inventories	5,622
Working capital	8,659
Total assets(2)(3)	23,717
Long-term debt	3,464
Capital lease obligations	60
Redeemable preferred stock	0.3
Shareholders' equity(3)	9,040
Market capitalization	1,20,951

Fiscal 2019 Income Statement Review

• Revenues for NIKE, Inc. rose 7 percent to $39.1 billion, up 11 percent on a currency-neutral basis.
  • Revenues for the NIKE Brand were $37.2 billion, up 11 percent on a currency-neutral basis driven by growth across NIKE Direct and wholesale, key categories including Sportswear, Jordan and Running, and double-digit growth across footwear and apparel.
  • NIKE Direct revenues were $11.8 billion, up 16 percent on a currency-neutral basis, driven by a 35 percent increase in digital commerce sales, 6 percent growth in comparable store sales as well as the addition of new stores. Sales to wholesale customers increased 10%.
  • Revenues for Converse were $1.9 billion, up 3 percent on a currency-neutral basis, mainly driven by double-digit growth in Asia and digital which was partially offset by declines in the U.S. and Europe.
• Gross margin increased 90 basis points to 44.7 percent due primarily to higher average selling prices, impacts from foreign currency, and growth in NIKE Direct. These benefits were partially offset by higher product costs.
• Selling and administrative expense increased 10 percent to $12.7 billion. Demand creation expense was $3.8 billion, up 5 percent to prior year due to sports marketing investments, global brand campaigns, key sports moments and new product launches. Operating overhead expense increased 13 percent to $8.9 billion driven primarily by wage-related and administrative expenses, which reflect critical investments in innovation, data and analytics, and new capabilities to accelerate our end-to-end digital transformation.
• The effective tax rate was 16.1 percent, compared to 55.3 percent for the same period last year, due to significant charges related to the enactment of the Tax Act in the prior year.
• Net income increased to $4.0 billion and diluted earnings per share was $2.49 driven by strong revenue growth, gross margin expansion, a lower average share count and a lower tax rate, which was partially offset by higher selling and administrative expense.

May 31, 2019 Balance Sheet Review

• Inventories for NIKE, Inc. were $5.6 billion, up 7 percent compared to the prior year period, with healthy inventory levels across all geographies.
• Cash and equivalents and short-term investments were $4.7 billion, $582 million lower than last year as share repurchases, dividends, and investments in infrastructure more than offset proceeds from net income