Nke Model Di Vincomplete

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

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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

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
Other expense (income) (196) 66 (78) 0
Pre-tax income 4,886 4,325 4,801 5,169
Taxes 646 2,392 772 832
Net Income 4,240 1,933 4,029 4,337

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
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 12,830

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 20,313

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
Current Liabilities 5,890 7,637 8,190

Income taxes payable 150 229 229


Long-term debt 3,468 3,464
Deferred income taxes and other liabilities 3,216 3,347 3,347
Long-Term Liabilities 6,834 7,040 3,576

Total Liabilities 12,724 14,677 11,766

Stockholder's Equity 9,812 9,040

Total Liabilities + Stockholder's Equity 22,536 23,717 11,766

Check 0.000 0.000 8,547.333

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 4,337
Depreciation 745
Amortization 15
(Increase) Decrease to Net Working Capital (415)
Cash Flow from Operations 4,682

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

Revolver draw (paydown)


Debt issuance
Debt paydown
Share repurchase (3,750)
Dividends (1,466)
Option proceeds
Cash Flow From Financing Activities

Beginning Cash 4,663


Change in Cash 3,630
Ending Cash 8,293

Equity Schedule
2017A 2018A 2019A 2020P
Stockholder's Equity
Beginning balance 9,040
Net income 4,337
Share repurchase (3,750)
Dividends (1,466)
Option proceeds
Ending balance 8,161

Dividends
Dividend payout ratio 27.3% 65.4% 33.8% 33.8%
Dividends 1,159 1,265 1,360 1,466

Option proceeds
Average strike price
Option proceeds 489 733 700

Debt Paydown & Interest Schedule


2017A 2018A 2019A 2020P
Cash flow available for financing activities
Repurchase of equity
Dividends
Option Proceeds
Plus: Beginning cash balance
Less: Minimum cash balance (2,000)
Cash available for debt paydown

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

Revolver
Cash available for revolver
Beginning revolver balance
Draw (paydown)
Ending revolver balance

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

Average cash balance


Cash interest rate 0.50%
Interest income

Net interest expense (income)


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

0 0 0 0
5,558 5,976 6,425 6,908
895 962 1,034 1,112
4,663 5,013 5,390 5,796

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

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

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

21,589 22,962 24,439 26,028

6 6 6 6
9 9 9 9
3,013 3,239 3,482 3,744
5,775 6,208 6,673 7,174

8,803 9,462 10,171 10,932

229 229 229 229

3,347 3,347 3,347 3,347


3,576 3,576 3,576 3,576

12,379 13,038 13,747 14,508

12,379 13,038 13,747 14,508

9,210.352 9,924.223 10,692.759 11,520.061

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


4,663 5,013 5,390 5,796
801 861 926 995
15 15 15 15
(349) (375) (403) (434)
5,130 5,514 5,928 6,372

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


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

(3,750) (3,750) (3,750) (3,750)


(1,576) (1,695) (1,822) (1,959)

8,293 12,293 16,593 21,215


4,000 4,300 4,622 4,968
12,293 16,593 21,215 26,183

2021P 2022P 2023P 2024P

8,161 7,498 7,067 6,885


4,663 5,013 5,390 5,796
(3,750) (3,750) (3,750) (3,750)
(1,576) (1,695) (1,822) (1,959)

7,498 7,067 6,885 6,972

33.8% 33.8% 33.8% 33.8%


1,576 1,695 1,822 1,959

Step

hedule
2021P 2022P 2023P 2024P

(112) (109) (609) (98)

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