Aureus
FRed Flag

Nike, Inc.(NKE)

F

Financial data as of May 31, 2025Declining · Consumer Discretionary

FCF Margin5.5%Free Cash Flow / Revenue
Cash Conversion114.9%Operating CF / Net Income
Free Cash Flow$3.3B
Revenue$46.3B
Net Cash-$3.6BNet debt position
Debt / FCF4.3xElevated debt burden
Current Ratio2.21Adequate short-term liquidity
YoY FCF Growth-94.2%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-1Significant YoY FCF decline (-94.2%)
→
-0.5Highly volatile FCF (consistency: 1.60)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (115%)
  • Strong liquidity (current ratio: 2.21)

Concerns

  • Low FCF margin (5.5%)
  • Net debt position ($3.6B) — 4.3x FCF, manageable
  • Significant YoY FCF decline (-94.2%)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.7B stock-based compensation (22% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.5%
Net Margin7.0%
Operating CF Margin8.0%
CapEx Ratio0.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$3.6BNet debt position
Debt / FCF4.3xElevated debt burden
Current Ratio2.21Strong liquidity
Debt / Equity0.83Low leverage

Quarterly FCF Trend

-94.2% YoYDeclining (-94.2%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameNike, Inc.
SectorConsumer Discretionary
Free Cash Flow$3.3B
Revenue$46.3B
Net Income$3.2B
Operating Cash Flow$3.7B
Capital Expenditure$430.0M
FCF Margin5.5%
Cash Conversion Rate114.9%
Net Margin7.0%
Total Debt$11.0B
Total Cash$7.5B
Net Cash-$3.6B
Current Ratio2.21
Debt / Equity0.83
Debt / FCF4.3x
YoY FCF Growth-94.2%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateMay 31, 2025
GradeF
Data SourceYahoo Finance

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