Nike has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
GuruFocus does not calculate Nike's interest coverage with the available data.
Nike's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.24.
As of today, Nike's Altman Z-Score is 6.16.
Competitive Comparison
For the Footwear & Accessories subindustry, Nike's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nike Financial Strength Distribution
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's Financial Strength distribution charts can be found below:
* The bar in red indicates where Nike's Financial Strength falls into.
Nike Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Nike's Interest Expense for the
months ended in Feb. 2024 was $0 Mil. Its Operating Income for the
months ended in Feb. 2024 was $1,336 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $11,621 Mil.
Nike's Interest Coverage for the quarter that ended in Feb. 2024 is
| GuruFocus does not calculate Nike's interest coverage with the available data. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Nike's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Nike has a Z-score of 6.16, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 6.16 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Nike (NKE) Business Description
Traded in Other Exchanges
Address
One Bowerman Drive, Beaverton, OR, USA, 97005-6453
Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Executives
| Mark G Parker |
officer: President |
ONE BOWERMAN DR, BEAVERTON OR 97005 |
| Robert Holmes Swan |
director |
C/O EBAY INC., 2025 HAMILTON AVENUE, SAN JOSE CA 95125 |
| Monique S. Matheson |
officer: EVP: HR |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Johanna Nielsen |
officer: VP: CORP CONTROLLER |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Matthew Friend |
officer: EVP: CFO |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Craig A. Williams |
officer: PRES: GEOGRAPHIES & MRKTPLACE |
1680 CAPITAL ONE DR., MCLEAN VA 22102 |
| Maria Henry |
director |
C/O THE HILLSHIRE BRANDS COMPANY, 3500 LACEY ROAD, DOWNERS GROVE IL 60515 |
| Peter B. Henry |
director |
C/O NEW YORK UNIVERSITY/KAUFMAN MGT CNT, 44 WEST 4TH STREET, SUITE 11-160, NEW YORK CITY NY 10012 |
| Monica Gil |
director |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Andrew Campion |
officer: EVP: CFO, other: EVP: CFO |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Rogers John W Jr |
director |
ARIEL CAPITAL MANAGEMENT, INC., 200 EAST RANDOLPH DRIVE, SUITE 2900, CHICAGO IL 60601 |
| Ann M Miller |
officer: EVP & General Counsel |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Hilary K Krane |
officer: VP General Counsel |
ONE BOWERMAN DRIVE, BEAVERTON OR 97005 |
| Heidi O'neill |
officer: PRES: CONSUMER AND MKTPLC |
C/O SKULLCANDY, INC., 1441 WEST UTE BOULEVARD, SUITE 250, PARK CITY UT 84098 |
| Elizabeth J Comstock |
director |
GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210 |
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