Although Nike's debt rose to nearly $ 13 billion in fiscal 2021, the highest in the company's history, the credit quality of the issuer is not a concern. At the end of the 2021 fiscal year, Nike's revenue increased by 19%, amounting to $ 44.5 billion compared to $ 37.4 billion a year earlier. Net income more than doubled to $ 5.7 billion, or $ 3.56 per share, from $ 2.5 billion, or $ 1.60 per share, in fiscal 2020. Thanks to strong results, the volume of cash on the company's balance sheet increased to $ 13.5 billion, which fully covers the total debt. Thus, the company can boast of negative net debt.
YTM
1.2%
RISK
AA- / A1 / -
DURATION
5.2
Nike's credit profile is supported by the company's leadership in the global athletic apparel and footwear market. At the end of fiscal 2022, we expect the company to continue to improve its financial performance. We believe that revenue will continue to grow and may reach $ 50 billion. Even though Nike's total debt in absolute terms is at an all-time high, the company profile remains the best in terms of relative metrics compared to competing companies such as VF and PVH. Nike's dollar Eurobonds due March 2027 (US654106AJ22) traded at a yield of 1.2% with a duration of 5.2 years.
Nike, named for the Greek goddess of victory, is a shoe and apparel company. It designs, develops, and sells a variety of products to help in playing basketball and soccer (football), as well as in running, men's and women's training, and other action sports. Under its namesake brand, Nike also markets sports-inspired products for children and various competitive and recreational activities; it also sells sportswear under the Converse. The company, which generates some 60% of sales outside the US, sells through more than 1,090-owned retail stores worldwide and an e-commerce site, and to thousands of retail accounts, independent distributors, licensees and sales representatives. Customer in North America accounts for about 40% of total revenue.