Whether you’re thinking of buying shares in Nike or just a sneakerhead, knowing what Nike’s net worth is, is crucial. Nike is probably the most prominent sports shoe and apparel brand on the planet. So, it’s no surprise that people are keen to grab a slice of the Nike pie.
Nike’s net worth in March 2022 is $200 billion. But this figure is the result of decades of hard work. In fact, since Nike was founded in the 1960s, it’s employed clever marketing tactics. Nike has partnered with high-profile athletes and celebrities over the years. And as a result, it has positioned itself as the number one sports shoe brand in the world.
The History of Nike
In 1962, 24-year-old Phil Knight borrowed $50 from his father and created a company. His vision was to sell Japanese running shoes in America. And he named his new business Nike, which means “Victory” in Greek.
Knight hired an 18-year-old University of Oregon runner named Bill Bowerman as his first employee. Bowerman had recently invented a new way to attach spikes to shoes and became one of Nike’s key innovators over time.
The Nike brand soon spread across track and field in 1964. Then legendary boxer Muhammad Ali wore Nike Cortez shoes at all three weigh-ins before his historic fight with Sonny Liston.
The Nike swoosh logo was designed by Portland State graphic design student Carolyn Davidson in 1971 as part of her final exam.
First, let’s examine the importance of net worth and how it’s calculated. A publicly-traded company’s net worth is closely linked to the value of its shares, which fluctuates. However, as the company’s net worth increases, so does the value of its shares. Which is how investors profit when purchasing and holding shares in a company.
The net worth value is simply the total amount left when all assets are liquidated and liabilities paid. Nike’s net worth, therefore, stands at $200 billion as of the first quarter of 2022.
It’s important to note that Nike’s annual revenue increased by 20% from 2020 to 2021. As a result, it stood at almost $47 billion by December 2021. This indicates that Nike continues to grow exponentially as a company each year.
Most of Nike’s revenue comes from its international sales. Much of its recent revenue growth can be attributed to its e-commerce sales over the past couple of years.
By the end of 2021, Nike had sold $47 billion worth of products for the year. That’s 10% more than they did the year before. And as of March 2022, Nike’s net worth is firm at an impressive $200 billion. Moreover, it seems these figures are set to increase in the coming years. All the more reason to consider Nike as a viable investment opportunity for the foreseeable future.