NIKE, Inc.is an Americanmultinational corporationthat is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered nearBeaverton,Oregon, in thePortland metropolitan area. It is the world's largest supplier ofathletic shoesandappareland a major manufacturer ofsports equipment, with revenue in excess of US$ 24.95billion in its fiscal year 2019 (ending May 31, 2019). Using the data provided in Value Line sheet (use the forecasted data for 2020 and the data in the last column as data for 2024 only), answer the following questions:

1.What is the average annual expected growth rate in Sales between 2020 and 2024?

A.6.0%

B.9.5%

C.8.3%

D.7.4%

2.Sales in 2023 is expected to be:

A.$72,489 million

B.$34,637 million

C.$52, 543 million

D.$67, 904 million

3.What is the average annual expected growth rate in Net Income between 2020 and 2024?

A.16.03%

B.22.64%

C.28.37%

D.17.45%

4.Net Income in 2022 are expected to be:

A.$3,134 million

B.$4,372 million

C.$6,084 million

D.$5,904 million

5.The change in Net Working Capital in year 2022 is closes to:

A. $340 million

B. $497 million

C. $6,439 million

D. $3,259 million

6.Total capital expenditures for 2023 is closes to:

A.$402 million

B.$3,425 million

C. $1,402 million

D. $734 million

NIKE, INC. 'B' NYSE-NKE TIMELINESS SAFETY TECHNICAL 1 1 2 High: Low: Raised 3/27/20 Raised 8/11/06 Raised 4/3/20 BETA 1.00 (1.00 = Market) 18-Month Target Price Range Low-High $61-$143 Midpoint (% to Mid) $102 (20%) 28.5 RELATIVE DIV'D Median: 23.0) P/E RATIO 2.32 YLD 1.2% 84.46 P/ERATIO 33.9(Trailing: RECENT PRICE 16.7 9.6 23.1 15.2 24.6 17.4 28.7 21.3 40.1 25.7 49.9 34.9 LEGENDS 16.0 x Cash Flow p sh . . . . Relative Price Strength 2-for-1 split 4/07 2-for-1 split 12/12 2-for-1 split 12/15 Options: Yes Shaded area indicates recession 68.2 45.3 65.4 49.0 65.2 50.3 86.0 62.1 101.8 71.2 105.6 60.0 VALUE LINE Target Price Range 2023 2024 2025 160 120 100 80 60 50 40 30 2-for-1 2-for-1 2023-25 PROJECTIONS Ann'l Total Price Gain Return High 130 (+55%) 13% Low 110 (+30%) 8% Institutional Decisions 2Q2019 3Q2019 4Q2019 716 797 967 to Buy to Sell 724 694 664 Hld's(000)103429710329461024905 % TOT. RETURN 3/20 Percent shares traded 30 20 10 1 yr. 3 yr. 5 yr. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Leases, Uncapitalized Annual rentals $553 mill. No Defined Benefit Pension Plan Preferred Stock None Common Stock 1,557,372,768 shares Class A shares: 315,017,252 Class B shares: 1,242,355,515 MARKET CAP: $131.5 billion (Large Cap) CURRENT POSITION 2018 2019 2/29/20 ($MILL.) Cash Assets 5245 4663 3182 Receivables 3498 4272 4473 Inventory (LIFO) 5261 5622 5807 Other 1130 1968 2282 Current Assets 15134 16525 15744 Accts Payable 2279 2612 2221 Debt Due 342 15 435 Other 3419 5239 5624 Current Liab. 6040 7866 8280 ANNUAL RATES Past of change (per sh) 10 Yrs. Sales 9.5% ''Cash Flow'' 11.5% Earnings 11.5% Dividends 14.0% Book Value 5.0% Fiscal Year Ends 2017 2018 2019 2020 2021 Fiscal Year Ends 2017 2018 2019 2020 2021 Calendar 2016 2017 2018 2019 2020 Past Est'd '17-'19 5 Yrs. to '23-'25 9.5% 8.5% 13.0% 14.0% 13.0% 16.0% 14.0% 10.0% 1.5% 5.5% QUARTERLY SALES ($ mill.) A Aug.31 Nov.30 Feb.28 May 31 9061 8180 8432 8677 9070 8554 8984 9789 9948 9374 9611 10184 10660 10326 10104 8210 10300 10200 10500 11350 EARNINGS PER SHARE AB Aug.31 Nov.30 Feb.28 May 31 .73 .50 .68 .60 .57 .46 .68 .69 .67 .52 .68 .62 .86 .70 .78 .26 .75 .70 .85 .80 QUARTERLY DIVIDENDS PAID C Mar.31 Jun.30 Sep.30 Dec.31 .16 .16 .16 .16 .18 .18 .18 .18 .20 .20 .20 .20 .22 .22 .22 .22 .245 .245 (A) Fiscal years end May 31st. (B) Diluted earnings. Excludes nonrecurring: '07, 2; '08, 8; '09, (13); '13, 1; '18, ($1.23) due to tax law change. Next egs. report due last week of Full Fiscal Year 34350 36397 39117 39300 42350 Full Fiscal Year 2.51 2.40 2.49 2.60 3.10 Full Year .64 .72 .80 .88 VL ARITH.* INDEX -0.7 53.7 74.6 -26.1 -16.7 -5.7 VALUE LINE PUB. LLC 23-25 22.73 24.95 25.25 27.30 2.95 3.02 3.05 3.55 2.40 2.49 2.60 3.10 .78 .86 .93 1.00 .64 .71 .70 .75 6.13 5.77 6.10 6.40 1601.0 1568.0 1555.0 1550.0 25.3 32.0 Bold figures are Value Line 1.37 1.75 estimates 1.3% 1.1% Sales per sh A 37.05 ''Cash Flow'' per sh 7.00 AB Earnings per sh 6.00 Div'ds Decl'd per sh CD 1.40 Cap'l Spending per sh 1.00 Book Value per sh 8.85 Common Shs Outst'g EF 1525.0 Avg Ann'l P/E Ratio 20.0 Relative P/E Ratio 1.10 Avg Ann'l Div'd Yield 1.2% 19014 20862 24128 25313 27799 30601 32376 34350 14.7% 15.1% 14.1% 14.6% 15.1% 15.6% 15.9% 15.9% 323.7 335.0 373.0 438.0 518.0 606.0 649.0 706.0 1906.7 2133.0 2223.0 2464.0 2693.0 3273.0 3760.0 4240.0 24.2% 25.0% 25.5% 24.7% 24.0% 22.2% 18.7% 13.2% 10.0% 10.2% 9.2% 9.7% 9.7% 10.7% 11.6% 12.3% 7595.0 7339.0 7666.0 9700.0 8669.0 9642.0 9667.0 10587 445.8 276.0 228.0 1210.0 1199.0 1079.0 2010.0 3471.0 9753.7 9843.0 10381 11156 10824 12707 12258 12407 18.7% 21.1% 21.0% 20.0% 22.6% 23.8% 26.5% 26.9% 19.5% 21.7% 21.4% 22.1% 24.9% 25.8% 30.7% 34.2% 14.4% 16.0% 15.5% 15.8% 17.5% 18.7% 22.3% 25.0% 27% 26% 28% 29% 30% 27% 27% 27% 36397 14.3% 747.0 3974.0 8.1% 10.9% 9094.0 3468.0 9812.0 30.3% 40.5% 27.8% 31% Sales ($mill) A Operating Margin Depreciation ($mill) Net Profit ($mill) Income Tax Rate Net Profit Margin Working Cap'l ($mill) Long-Term Debt ($mill) Shr. Equity ($mill) Return on Total Cap'l Return on Shr. Equity Retained to Com Eq All Div'ds to Net Prof BUSINESS: NIKE designs, develops, and markets footwear, apparel, equipment, and accessories. Sells products to retail accounts, through NIKE-owned stores and the Internet, and through a mix of independent distributors and licensees in numerous countries. Offerings are focused in six categories: running, basketball, the Jordan brand, football (soccer), training, and sportswear. There is another product line for kids. Has about 76,700 employees (including part-timers). Swoosh, LLC, owns 77.7% Cl. A shares, 16.3% Cl. B; offs./dirs., 3.8% of Cl. B; Vanguard, 8.2%; BlackRock, 6.8% (8/19 proxy). Chairman: Mark G. Parker. CEO: John Donahoe. Inc.: Oregon. Addr.: One Bowerman Drive, Beaverton, OR 97005. Tel.: 503-671-6453. Internet: www.nikeinc.com. NIKE stock has been on an upward trajectory since announcing February-period results. (Years end May 31st). The reported numbers for the fiscal third quarter bested reduced expectations, and leadership struck an upbeat tone on the pandemic situation, particularly with regard to Chinese operations bouncing back sooner than most had anticipated. Digital sales remained stout, as the swoosh's online presence continues to grow. This avenue should be especially valuable in the coming weeks, as store closures around the globe are likely to remain rampant. Elsewhere, sales in other parts of the world perked up in the penultimate quarter of the campaign; Europe, the Middle East, and Africa rose 11%, while Latin America saw its receipts climb 8%. It is worth noting that in the vital North America market where troubles have now fully arrived, the top line was up 4% year over year. Management believes it learned from the Chinese situation and now has a playbook for the current domestic shutdown. Chinese sales were obviously down when stores were shuttered, but upon reopening showed immediate signs of life from a traffic standpoint. Leadership sees no reason this will not occur in the rest of its markets, with the United States at the top of the list. The question is just how long will it be until these doors open. Still, we are leaning toward the consensus expectation for the balance of fiscal 2020. The company has not offered guidance for the fiscal fourth quarter, but the broader economic woes brought about by the necessary social distancing practices lead us to believe that both the top and bottom lines are going to decline sharply in the May quarter. Yes, the swoosh's online business should be on top of its game and those with discretionary income should continue to spend on these various brands, but there will be belt tightening at many households. For this reason, we now think sales will come in below the $40 billion mark and earnings will only climb to around $2.60 a share. We think this high-quality, timely selection has room to run over the coming six to 12 months. However, longerterm accounts should look elsewhere. Erik M. Manning April 24, 2020 5.82 6.54 7.22 8.10 9.48 9.87 9.82 10.97 13.17 14.16 15.98 17.85 19.25 20.91 .59 .66 .80 .86 1.04 1.06 1.15 1.30 1.42 1.62 1.85 2.26 2.62 3.01 .44 .56 .66 .72 .86 .88 .97 1.10 1.18 1.35 1.49 1.85 2.16 2.51 .09 .12 .15 .18 .22 .25 .27 .30 .35 .41 .47 .54 .62 .70 .10 .12 .16 .16 .23 .23 .17 .23 .33 .36 .51 .56 .68 .67 2.27 2.69 3.03 3.49 3.98 4.48 5.04 5.18 5.67 6.24 6.22 7.41 7.29 7.55 2104.8 2100.8 2072.0 2015.2 1964.4 1942.0 1936.0 1902.0 1832.0 1788.0 1740.0 1714.0 1682.0 1643.0 18.4 17.9 16.0 16.5 17.8 15.3 16.4 18.2 20.4 19.4 24.2 24.4 27.5 21.6 .97 .95 .86 .88 1.07 1.02 1.04 1.14 1.30 1.09 1.27 1.23 1.44 1.09 1.1% 1.2% 1.4% 1.5% 1.4% 1.8% 1.7% 1.5% 1.4% 1.5% 1.3% 1.2% 1.0% 1.3% CAPITAL STRUCTURE as of 2/29/20 Total Debt $3898 mill. Due in 5 Yrs $520 mill. LT Debt $3463 mill. LT Interest $190 mill. (27% of Capital) THIS STOCK 20 15 June. (C) Dividends historically paid in early January, April, July, and October. Reinvestment plan available. 39117 14.0% 705.0 4029.0 16.1% 10.3% 8659.0 3464.0 9040.0 32.7% 44.6% 29.8% 33% 39300 14.8% 685 4045 19.0% 10.3% 8200 3400 9500 32.0% 42.5% 27.5% 36% (D) Includes 21 dividend paid December 2012. (E) In millions, adjusted for splits. (F) Each share of Class A is convertible to one share of Class B. 2020 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. 42350 15.4% 725 4805 21.0% 11.3% 8700 3200 9900 37.5% 48.5% 33.0% 32% Company's Financial Strength Stock's Price Stability Price Growth Persistence Earnings Predictability 56500 19.5% 880 9150 21.0% 16.2% 10250 2850 13500 56.5% 67.5% 52.0% 23% A++ 80 95 95 To subscribe call 1-800-VALUELINE