In some cases, the NKE financials in this model have been edited and simplified for eductional purposes.

All rights reserved.

ified for eductional purposes.
Financial Statement Model for NIKE, Inc.
(USD in millions, except per share)

Company name NIKE, Inc.

Ticker NKE
Share price as of last close $85.25
Latest closing share price date 8/29/19
Latest fiscal year end date 5/31/19
Circularity 1

Income Statement
2017A 2018A 2019A 2020P
Revenue 34,350 36,397 39,117 42,051
COGS 19,038 20,441 21,643 23,254
Gross Profit 15,312 15,956 17,474 18,797

Demand creation 3,341 3,577 3,753 4,030

Operating overhead 6,506 7,160 8,229 8,837
Total SG&A (less depreciation) 9,847 10,737 11,982 12,868

EBITDA 5,465 5,219 5,492 5,929

Depreciation 706 747 705 745
Amortization 10 27 15 15
EBIT 4,749 4,445 4,772 5,169
Net interest expense 59 54 49 88
Other expense (income) (196) 66 (78) 0
Pre-tax income 4,886 4,325 4,801 5,081
Taxes 646 2,392 772 818
Net Income 4,240 1,933 4,029 4,263

Earnings per share

Drivers
Revenue growth 6.0% 7.5% 7.5%
Gross margin 44.6% 43.8% 44.7% 44.7%
SG&A as % of revenue 28.7% 29.5% 30.6% 30.6%
EBITDA margin 15.9% 14.3% 14.0% 14.0%
Effective tax rate 13.2% 55.3% 16.1% 16.1%

Balance Sheet
2017A 2018A 2019A 2020P
Cash and equivalents 5,245 4,663 3,029
Accounts receivable, net 3,498 4,272 4,608
Inventories 5,261 5,622 6,119
Prepaid expenses and other current assets 1,130 1,968 2,103
Current Assets 15,134 16,525 15,859
Property, plant, and equipment, net 4,454 4,744 5,050
Identifiable intangible assets, net 285 283 268
Goodwill 154 154 154
Deferred income taxes and other assets 2,509 2,011 2,011
Long-Term Assets 7,402 7,192 7,483

Total assets 22,536 23,717 23,342

Current portion of long-term debt 6 6 6

Notes payable 336 9 9
Accounts payable 2,279 2,612 2,803
Accrued liabilities 3,269 5,010 5,372
Revolver 0 0 0
Current Liabilities 5,890 7,637 8,190

Income taxes payable 150 229 229

Long-term debt 3,468 3,464 3,464
Deferred income taxes and other liabilities 3,216 3,347 3,347
Long-Term Liabilities 6,834 7,040 7,040

Total Liabilities 12,724 14,677 15,230

Stockholder's Equity 9,812 9,040

Total Liabilities + Stockholder's Equity 22,536 23,717 15,230

Check 0.000 0.000 8,111.976

Working Capital Schedule

2017A 2018A 2019A 2020P
Working Capital Balances
Accounts receivable, net 3,498 4,272 4,608
Inventories 5,261 5,622 6,119
Prepaid expenses and other current assets 1,130 1,968 2,103
Total non-cash current assets 9,889 11,862 12,830

Accounts payable 2,279 2,612 2,803

Accrued liabilities 3,269 5,010 5,372
Total non-debt current liabilities 5,548 7,622 8,175

Net working capital 4,341 4,240 4,655

Change in net working capital (101) 415

Drivers
Days sales outstanding (DSO) 35 40 40
Inventory Turns 3.9x 3.8x 3.8x
Prepaid exp. as % of revenue 3.1% 5.0% 5.0%
Days payables outstanding (DPO) 41 44 44
Accrued liabilities as % of COGS 16.0% 23.1% 23.1%

PP&E and Intangible Schedule

2017A 2018A 2019A 2020P
Beginning PP&E Balance 4,454 4,744
Depreciation (705) (745)
Capex 995 1,051
Ending PP&E 4,744 5,050

Beginning Intangible Balance 285 283

Amortization (15) (15)
Additions 13 0
Ending Intangible Balance 283 268

Goodwill 154 154

Drivers
Capex as % of revenue 2.5% 2.5%
Depreciation as % of capex 70.9% 70.9%

Cash Flow Statement

2017A 2018A 2019A 2020P
Net Income 4,263
Depreciation 745
Amortization 15
(Increase) Decrease to Net Working Capital (415)
Cash Flow from Operations 4,608

Capex (1,051)
Cash Flow From Investing Activities (1,051)

Revolver draw (paydown) 0

Debt issuance 115
Debt paydown (115)
Share repurchase (3,750)
Dividends (1,441)
Option proceeds
Cash Flow From Financing Activities (5,191)

Beginning Cash 4,663

Change in Cash (1,634)
Ending Cash 3,029

Equity Schedule
2017A 2018A 2019A 2020P
Stockholder's Equity
Beginning balance 9,040
Net income 4,263
Share repurchase (3,750)
Dividends (1,441)
Option proceeds
Ending balance 8,112

Dividends
Dividend payout ratio 27.3% 65.4% 33.8% 33.8%
Dividends 1,159 1,265 1,360 1,441

Option proceeds
Average strike price
Option proceeds 489 733 700

Debt Paydown & Interest Schedule

2017A 2018A 2019A 2020P
Cash flow available for financing activities 3,556
Repurchase of equity (3,750)
Dividends (1,441)
Option Proceeds 0
Plus: Beginning cash balance 4,663
Less: Minimum cash balance (2,000)
Cash available for debt paydown 1,029

Long-Term Debt
Beginning Balance 3,470
Repayment / amortization (115)
Issuance 115
Ending Balance 3,470

Revolver
Cash available for revolver 1,029
Beginning revolver balance 0
Draw (paydown) 0
Ending revolver balance 0

Interest
Revolver interest rate 1.00%
Revolver interest expense 0
Long-term debt interest rate 3.09%
Long-term interest expense 107
Total interest expense 107

Average cash balance 3,846

Cash interest rate 0.50%
Interest income 19
Net interest expense (income) 88

Shares Outstanding
2017A 2018A 2019A 2020P
Beginning basic shares outstanding 1,658 1,619 1,577
New share issuance 4 4 3
Shares issued from options 17 24 18
Share repurchase
Ending basic shares outstanding

Effect of dilutive securities

Diluted shares outstanding 1,692 1,659 1,618

Share Repurchase
Projected P/E Multiple 33.0x
Projected share price
Total shares repurchased 60 70 54

EPS
Net Income
Diluted shares outstanding
EPS
2021P 2022P 2023P 2024P
45,205 48,595 52,240 56,158
24,998 26,873 28,888 31,055
20,206 21,722 23,351 25,102

4,333 4,658 5,007 5,382

9,500 10,212 10,978 11,802
13,833 14,870 15,985 17,184

6,374 6,852 7,366 7,918

801 861 926 995
15 15 15 15
5,558 5,976 6,425 6,908
96 107 118 127
0 0 0 0
5,461 5,869 6,307 6,781
879 945 1,015 1,092
4,582 4,924 5,292 5,689

7.5% 7.5% 7.5% 7.5%

44.7% 44.7% 44.7% 44.7%
30.6% 30.6% 30.6% 30.6%
14.0% 14.0% 14.0% 14.0%
16.1% 16.1% 16.1% 16.1%

2021P 2022P 2023P 2024P

2,000 2,000 2,000 2,000
4,954 5,325 5,725 6,154
6,578 7,072 7,602 8,172
2,260 2,430 2,612 2,808
15,793 16,827 17,939 19,135
 5,379 5,732 6,112 6,521
253 238 223 208
154 154 154 154
2,011 2,011 2,011 2,011
7,797 8,135 8,500 8,894

23,589 24,962 26,439 28,028

6 6 6 6
9 9 9 9
3,013 3,239 3,482 3,744
5,775 6,208 6,673 7,174
351 1,555 2,571 3,382
9,154 11,018 12,742 14,314

229 229 229 229

3,464 3,464 3,464 3,464
3,347 3,347 3,347 3,347
7,040 7,040 7,040 7,040

16,194 18,058 19,782 21,354

16,194 18,058 19,782 21,354

7,395.218 6,904.847 6,657.855 6,674.049

ule
2021P 2022P 2023P 2024P

4,954 5,325 5,725 6,154

6,578 7,072 7,602 8,172
2,260 2,430 2,612 2,808
13,793 14,827 15,939 17,135

3,013 3,239 3,482 3,744

5,775 6,208 6,673 7,174
8,788 9,447 10,156 10,917

5,005 5,380 5,783 6,217

349 375 403 434

40 40 40 40
3.8x 3.8x 3.8x 3.8x
5.0% 5.0% 5.0% 5.0%
 44 44 44 44
23.1% 23.1% 23.1% 23.1%

dule
2021P 2022P 2023P 2024P
5,050 5,379 5,732 6,112
(801) (861) (926) (995)
1,130 1,215 1,306 1,404
5,379 5,732 6,112 6,521

268 253 238 223

(15) (15) (15) (15)
0 0 0 0
253 238 223 208

154 154 154 154

2.5% 2.5% 2.5% 2.5%

70.9% 70.9% 70.9% 70.9%

2021P 2022P 2023P 2024P

4,582 4,924 5,292 5,689
801 861 926 995
15 15 15 15
(349) (375) (403) (434)
5,049 5,425 5,829 6,266

(1,130) (1,215) (1,306) (1,404)

(1,130) (1,215) (1,306) (1,404)

351 1,204 1,016 811

112 109 609 98
(112) (109) (609) (98)
(3,750) (3,750) (3,750) (3,750)
(1,549) (1,664) (1,789) (1,923)

(4,948) (4,210) (4,523) (4,862)

3,029 2,000 2,000 2,000

(1,029) 0 0 0
2,000 2,000 2,000 2,000

2021P 2022P 2023P 2024P

 8,112 7,395 6,905 6,658
4,582 4,924 5,292 5,689
(3,750) (3,750) (3,750) (3,750)
(1,549) (1,664) (1,789) (1,923)

7,395 6,905 6,658 6,674

33.8% 33.8% 33.8% 33.8%

1,549 1,664 1,789 1,923

Step

hedule
2021P 2022P 2023P 2024P
3,919 4,210 4,523 4,862
(3,750) (3,750) (3,750) (3,750)
(1,549) (1,664) (1,789) (1,923)
0 0 0 0
3,029 2,000 2,000 2,000
(2,000) (2,000) (2,000) (2,000)
(351) (1,204) (1,016) (811)

3,470 3,470 3,470 3,470

(112) (109) (609) (98)
112 109 609 98
3,470 3,470 3,470 3,470

(351) (1,204) (1,016) (811)

0 351 1,555 2,571
351 1,204 1,016 811
351 1,555 2,571 3,382

1.00% 1.00% 1.00% 1.00%

2 10 21 30
3.09% 3.09% 3.09% 3.09%
107 107 107 107
109 117 128 137

2,514 2,000 2,000 2,000

0.50% 0.50% 0.50% 0.50%
13 10 10 10
 96 107 118 127

2021P 2022P 2023P 2024P