NIKE EBITDA 2010-2023 | NKE (2024)

FAQs

What is the EBITDA of NIKE? ›

Nike's ebitda for fiscal years ending May 2019 to 2023 averaged 6.409 billion. Nike's operated at median ebitda of 6.774 billion from fiscal years ending May 2019 to 2023. Looking back at the last 5 years, Nike's ebitda peaked in May 2021 at 8.028 billion. Nike's ebitda hit its 5-year low in May 2020 of 4.234 billion.

Fiscal 2010 net income increased 28 percent to $1.9 billion and diluted earnings per share increased 27 percent to $3.86.

As of 2024-04-19, the EV/EBITDA ratio of Nike Inc (NKE) is 20.8. EV/EBITDA ratio is calculated by dividing the enterprise value by the TTM EBITDA. Nike's latest enterprise value is 145,034 mil USD. Nike's TTM EBITDA according to its financial statements is 6,962 mil USD.

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an alternate measure of profitability to net income. By including depreciation and amortization as well as taxes and debt payment costs, EBITDA attempts to represent the cash profit generated by the company's operations.

When businesses are analyzed as an investment, EBITDA is considered to more accurately reflect the performance of a business. By reducing the noise created by accounting policies, tax strategies, and capital structure, it provides a more clear idea of the ability of a business to generate profit.

EBITDA can also be used to compare companies against each other and industry averages. In addition, EBITDA is a good measure of core profit trends because it eliminates some of the extraneous factors and allows a more "apples-to-apples" comparison.

NIKE, Inc. Revenue was up 10 percent to a record $20.9 billion. NIKE Brand Revenue was up 10 percent to a record $18.1 billion. Our Other Businesses grew 9 percent to a record $2.7 billion.

In 1984, Nike signed Jordan to a five-year, $2.5 million deal. That deal was worth $500,000 per year, which was a record-breaking amount at the time. Jordan's deal with Nike has since been renegotiated several times, and it is now worth hundreds of millions of dollars.

Last year, Michael Jordan made an estimated $150 million from his partnership with Nike. While estimates vary, he's likely earned a total of at least $1.5 billion since 1986. (Good money if you can get it.)

The EV/EBITDA Multiple

The EV/EBITDA ratio is a popular metric used as a valuation tool to compare the value of a company, debt included, to the company's cash earnings less non-cash expenses. It's ideal for analysts and investors looking to compare companies within the same industry.

Why is EV Ebitda a good multiple? ›

Therefore, the EV/EBITDA multiple is often used to value potential acquisition targets in M&A because it quantifies the amount of debt that the acquirer must assume (i.e. cash-free, debt-free).

Commonly, a business with a low EBITDA multiple can be a good candidate for acquisition. An EV/EBITDA multiple of about 8x can be considered a very broad average for public companies in some industries, while in others, it could be higher or lower than that.

The EBITDA margin measures a company's operating profit as a percentage of its revenue, revealing how much operating cash is generated for each dollar of revenue earned. Therefore, a good EBITDA margin is a relatively high number in comparison with its peers.

A too-high EBITDA could translate to a very high sales price that makes your business unattractive or uncompetitive. This could price you out of the market and make other dealerships, with their lower EBITDAs and lower sales prices, look like better values as acquisitions.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to measure a company's operational performance and profitability by excluding non-operating expenses and accounting factors.

The total EBITDA margin will be around 10%. The EBITDA margin shows how much operating expenses are eating into a company's gross profit. In the end, the higher the EBITDA margin, the less risky a company is considered financially.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. EBITDA margin is calculated by dividing EBITDA by total revenue.

Coca-Cola's operated at median ev / ebitda of 21.1x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Coca-Cola's ev / ebitda peaked in December 2020 at 21.9x. Coca-Cola's ev / ebitda hit its 5-year low in December 2023 of 18.1x.