$Nike (NKE.US)$ see chatgpt analysis of Nike 2nd Q 2024 bala...

### Balance Sheet Analysis for Q2 2024

#### Assets

- **Total Assets**: $38.11 billion, up by 1.54% YoY.

- **Current Assets**: $25.38 billion, up by 0.71% YoY.

- **Cash, Cash Equivalents, and Short-term Investments**: $11.58 billion, up by 8.50% YoY.

- **Receivables**: $4.43 billion, down by 7.17% YoY.

- **Inventory**: $7.52 billion, down by 11.06% YoY. This significant reduction indicates better inventory management.

- **Other Current Assets**: $1.85 billion, down by 4.53% YoY.

- **Non-Current Assets**: $12.73 billion, up by 3.24% YoY.

- **Net PPE**: $7.72 billion, down by 3.57% YoY.

- **Goodwill and Other Intangible Assets**: $499 million, down by 10.09% YoY.

- **Other Non-Current Assets**: $4.51 billion, up by 19.66% YoY.

#### Liabilities

- **Total Liabilities**: $23.68 billion, up by 0.65% YoY.

- **Current Liabilities**: $10.59 billion, up by 14.44% YoY.

- **Payables**: $3.39 billion, down by 6.77% YoY.

- **Current Accrued Expenses**: $5.73 billion, significantly up by 199.58% YoY.

- **Current Debt and Capital Lease Obligation**: $1.48 billion, up by 244.08% YoY.

- **Non-Current Liabilities**: $13.09 billion, down by 8.30% YoY.

- **Long-term Debt and Capital Lease Obligation**: $10.47 billion, down by 10.62% YoY.

- **Other Non-Current Liabilities**: $2.62 billion, up by 2.35% YoY.

#### Equity

- **Total Stockholders' Equity**: $14.43 billion, up by 3.04% YoY.

- **Paid-in Capital**: $13.13 billion, up by 8.73% YoY.

- **Retained Earnings**: Not explicitly stated for Q2 but showed significant declines in earlier quarters.

### Summary and Conclusion

#### Positive Indicators:

- **Increase in Total Assets**: Indicates growth in asset base.

- **Increase in Cash Reserves**: Higher cash, cash equivalents, and short-term investments suggest improved liquidity.

- **Reduction in Inventory**: Efficient inventory management can lead to cost savings and improved cash flow.

- **Stable to Growing Non-Current Assets**: Indicates long-term investment in business operations.

#### Concerns:

- **High Current Liabilities**: Significant increase in current accrued expenses and current debt, suggesting higher short-term financial obligations.

- **Decrease in Long-term Debt**: While this reduces leverage, it may also impact future growth if the company reduces borrowing for expansion.

- **Mixed Equity Indicators**: Though total equity has increased, the substantial decline in retained earnings in previous quarters could indicate challenges in maintaining profitability over time.

#### Overall Financial Health:

Nike's balance sheet for Q2 2024 reflects a mix of strengths and challenges. The company demonstrates strong liquidity and efficient asset management, particularly with reduced inventories and increased cash reserves. However, the increase in short-term liabilities, particularly current accrued expenses and debt, raises concerns about short-term financial obligations. The long-term debt reduction is a positive sign, but it needs to be balanced with the company's growth strategy.

In conclusion, Nike appears to be in a stable financial position but should focus on managing its short-term liabilities and ensuring consistent profitability to maintain investor confidence.