Nike, Inc. — Earnings Quality Grade C
NKE · Consumer Cyclical
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 37 days, change +6 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -9.8%, CFFO -50.2%. Cash follows revenue
Expense Quality
Inventory -0.4% vs COGS -6.9%. Normal
CapEx growth -47.0% vs revenue -9.8%. Normal
SG&A/Gross Profit = 81.3%, exceeds 70%
Gross margin 42.7%, change -1.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.15. Profits backed by cash
FCF $3.3B, FCF/NI = 1.02
Accruals ratio = -1.3%. Low accruals
Cash $9.2B covers 83% of debt $11.0B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 4% of equity. Manageable
Debt/EBITDA = 2.4x. Healthy
Other assets 14.8% vs revenue -9.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.39 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10