NIKE Inc.

Capital Structure
NIKE Inc. engages in the design, development, marketing and sale of athletic footwear, apparel,
accessories, equipment and services.

NIKE's total debt decreased in 2019 ($3.853 billion, -0.8%) and 2021 ($12.813 billion, -1.6%) and increased
in 2018 ($3.885 billion, +2.2%) and 2020 ($13.015 billion, +237.8%) due to COVID-19 pandemy.

Capital Structure
$14,000.00 3.50
$12,000.00 3.00

$10,000.00 2.50
$8,000.00 2.00
M$

$6,000.00 1.50

$4,000.00 1.00
$2,000.00 0.50

$- 0.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Long-Term Debt Shareholder's Equity D/E

FY 2020 ended with $37.4 billion in revenue. That's a 4% decrease from the previous year which the
company attributed to the COVID-19 pandemy. FY 2019 saw revenues at $39.1 billion. The revenue value
returned to grow in 2021 with a value of $44,5 billion.
 Capital Structure
$50,000.00
$45,000.00
$40,000.00
$35,000.00
$30,000.00
$25,000.00
M$

$20,000.00
$15,000.00
$10,000.00
$5,000.00
$-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Annual Revenue Total Liabilities

Payout Policy
In 2019, the company’s Net Income increased from $1.93 billion in FY 2018 to $4 billion. This represents a
108% increase, mainly due to revenue growth, company Gross Margin Expansion and reduction in effective
tax rate. Therefore, the company's board of directors approved an increase in its annual dividend, raising it
from 88 cents per share to 98 cents. This means that earnings per share increased from 22 cents to 24.5
cents per quarter.

Payout Policy
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$7,000.00 $160.0000

$6,000.00 $140.0000

$120.0000
$5,000.00
$100.0000
$4,000.00
M$

$80.0000
$3,000.00
$60.0000
$2,000.00
$40.0000
$1,000.00 $20.0000

$- $-

Net Income Common Stock Dividend Paid

Average Stock Price

COVID-19 pandemy had a significant impact on the company, reducing Net Income for FY 2020 to $2.5
billion. Despite this, the company increased the value of dividends paid per share by 10.5 cents in 2020 and
by 12 cents in 2021.
 Payout Policy
$4.0000 0.80

$3.5000 0.70

$3.0000 0.60

$2.5000 0.50

$2.0000 0.40

$1.5000 0.30

$1.0000 0.20

$0.5000 0.10

$- 0.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Dividend per share Annual EPS Payout Ratio

The company's choices were to ensure dividend payments throughout COVID-19 period, while in FY 2020
the number of repurchased shares decreased in accordance to the share repurchase strategy, and in
addition, in FY2021, it sold its shares for $0.56 billion.

Payout Policy
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$4,000.00 2500.00
$3,500.00
$3,000.00 2000.00
$2,500.00
$2,000.00 1500.00
M$

$1,500.00
$1,000.00 1000.00
$500.00
$- 500.00
$-500.00
$-1,000.00 0.00

Common Stock Dividend Paid Net Total Equity/Issued Repurchased

No of Share

Conclusions
The pandemic period of COVID-19 was a tough time on the economic front. The company tried to contain
losses without disappointing stakeholders' expectations. This resulted in the payout policy strategy described
above, and the share sale undertaken in 2021 helped reducing the total value of debt.

Link
https://www.macrotrends.net/stocks/charts/NKE/nike
https://www.nasdaq.com/it/market-activity/stocks/nke/dividend-history
https://investors.nike.com/investors/stock-information/default.aspx
https://finance.yahoo.com/quote/NKE?p=NKE&.tsrc=fin-srch
https://www.investopedia.com/stock-analysis/081815/nike-inc-growth-company-nke.aspx
https://www.investing.com/equities/nike-financial-summary
https://www.google.com/finance/quote/NKE:NYSE?hl=it
Principles of Corporate Finance, 14th Edition, Richard Brealey, Stewart Myers, Franklin Allen, Alex
Edmans, McGraw Hill