Aureus
FRed Flag

Nike, Inc.(NKE)

F

Financial data as of May 31, 2026Improving · Consumer Discretionary

FCF Margin3.2%Free Cash Flow / Revenue
Cash Conversion92.3%Operating CF / Net Income
Free Cash Flow$2.2B
Revenue$46.4B
Net Cash-$3.5BNet debt position
Debt / FCF7.5xElevated debt burden
Current Ratio1.96Adequate short-term liquidity
YoY FCF Growth+200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1High debt-to-FCF ratio (7.5x)
→
+1Strong YoY FCF growth (200.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.56)
→
FinalF

Analysis Summary

Strengths

  • Strong YoY FCF growth (+200.0%)

Concerns

  • Low FCF margin (3.2%)
  • Heavy debt position ($3.5B net debt, 7.5x FCF)
  • High debt-to-FCF ratio (7.5x)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.7B stock-based compensation (33% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin3.2%
Net Margin6.7%
Operating CF Margin6.2%
CapEx Ratio1.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$3.5BNet debt position
Debt / FCF7.5xElevated debt burden
Current Ratio1.96Strong liquidity
Debt / Equity0.74Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

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$2.2B
Revenue$46.4B
Net Income$3.1B
Operating Cash Flow$2.9B
Capital Expenditure$684.0M
FCF Margin3.2%
Cash Conversion Rate92.3%
Net Margin6.7%
Total Debt$11.0B
Total Cash$7.6B
Net Cash-$3.5B
Current Ratio1.96
Debt / Equity0.74
Debt / FCF7.5x
YoY FCF Growth+200.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateMay 31, 2026
GradeF
Data SourceYahoo Finance

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