Revenue Analysis
Total and Operating Revenue: Over the three-year period, NKE displayed a fluctuating trend in both total and operating revenue. The revenue peak occurred in Q3 2023 with $13.388 billion, with a notable decrease noted in the following quarters. The latest quarter shows a revenue of $12.429 billion.
Gross Profit Margins: Gross profit margin has seen some variance, peaking in Q4 2022 at $5.971 billion. The most recent quarter reported a gross profit of $5.562 billion, showing a slight decrease compared to Q3 2023’s $5.72 billion.
Cost Management
Cost of Revenue: Cost of revenue appeared generally steady but showed a slight decrease in the last quarter to $6.867 billion from a high of $7.417 billion in Q4 2022.
Operating Expense: Total operating expenses were highest in Q4 2022, at $4.146 billion, decreasing recently to $4.026 billion, indicating a potential improvement in cost management.
Total Expenses: Total expenses mirrored revenue patterns, peaking at $11.563 billion in Q3 2023 and decreasing to $11.093 billion in the latest quarter.
Profitability Analysis
EBITDA: EBITDA reached its highest level at $2.009 billion in Q3 2023 before dropping back to $1.606 billion in Q1 2024.
Operating Income: Reflecting EBITDA trends, operating income was highest at $1.825 billion in Q3 2023, decreasing to $1.336 billion in the most recent quarter.
Pretax Income: The pretax income followed a similar trend, peaking in Q3 2023 at $1.922 billion, before falling to $1.404 billion in Q1 2024.
Net Income: NKE’s net income was highest in Q3 2023 at $1.578 billion, but saw a decrease to $1.172 billion by Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation costs have incrementally increased from $144 million in Q4 2022 to $270 million in Q1 2024, suggesting asset expansion or renewal.
Interest Expense: Interest income, rather than expense, is recorded, peaking at $34 million in Q3 2023 and staying fairly stable since.
Taxation
Tax Rate: The corporate tax rate varied, with a low of 12% in Q3 2023 and rising slightly to 16.5% in Q1 2024.
Tax Provision: The tax provision aligned with pretax income trends, being highest at $344 million in Q3 2023 and lowering to $232 million most recently.
Tax Effect of Unusual Items: Throughout the periods observed, no tax effects from unusual items were reported.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share peaked in Q3 2023 at $1.03 diluted and $1.04 basic. The most recent values reduced to $0.77 for both metrics.
Average Shares: There was a slight decrease in the average number of diluted shares from 1.553 billion in Q4 2022 to 1.527 billion in Q1 2024, indicating potential share buybacks or reduced issuance.
Net Income Available to Common Stockholders: Consistent with net income trends, the highest net income available to common stockholders was $1.578 billion in Q3 2023, dropping to $1.172 billion in the latest quarter.
Conclusion
NKE showed strong performance in some quarters but there is a notable decline in more recent periods across several metrics including revenue, net income, and profitability. The reduced costs and stable interest income provide some positive outlooks. It is advisable for NKE to continue monitoring costs closely and possibly boost marketing to regain traction in sales and profit margins.
Appendices
Supporting data includes the detailed figures on revenue, costs, profitability, cash flow, taxation, and shareholder metrics provided for the fiscal years discussed.