NIKE, Inc. Liquidation Value

NIKE, Inc. (NKE) presents a deeply negative liquidation recovery posture as of February 28, 2026, consistent with its going-concern brand-intensive structure. The MFFAIS-derived metrics confirm this: Cash Liquidation Value of approximately -$13.9B, Liquid Liquidation Value of approximately -$8.5B, and Operating Liquidation Value of approximately -$1.0B. Under the liquidation lens, haircutted assets fail to cover face-value liabilities by a substantial margin.

On the asset side, the most recoverable positions are cash and equivalents ($6.7B at 100% = ~$6.7B) and short-term investments ($1.4B). Accounts receivable of $5.4B at 90-95% yields approximately $4.8-5.1B. Inventory of $7.5B at 60% yields approximately $4.5B — the inventory balance is material and the filing discloses continued inventory obsolescence reserve activity at both Converse (higher reserves cited as driver of 970 bps gross margin contraction) and Greater China (lower obsolescence reserves cited as positive), indicating uneven quality across the book. PP&E of $4.8B at 50-70% yields approximately $2.4-3.3B. Operating lease ROU assets ($2.9B) carry no recovery value in liquidation; the corresponding lease liabilities ($3.1B current + noncurrent) remain at face value. Goodwill ($240M) and identified intangibles ($259M) are zeroed. Deferred tax and other long-term assets ($5.7B) are assigned zero in a wind-down scenario.

On the liability side, current liabilities total $10.8B (including $999M current portion of long-term debt, $493M current operating lease, $6.2B accrued liabilities, $2.9B AP). Long-term debt noncurrent is $7.0B (fair value $7.0B per filing). Noncurrent operating lease liabilities are $2.7B. Noncurrent deferred/other liabilities are $2.5B. Supplier finance program obligations of $700M (current) represent an incremental obligation that does not extinguish in wind-down. Total debt obligations including both tranches are approximately $8.0B face value. Letters of credit outstanding are $1.3B. Unrecognized tax benefits with interest/penalties total approximately $1.4B ($969M UTB + $433M interest/penalties).

Notably, operating cash flow for the nine months ended February 28, 2026 was $1.2B versus $3.2B in the prior year period — a 62% decline — driven by a $2.0B negative swing in working capital (AP drawdown, AR increase, income tax payments). This deterioration in cash generation, combined with a Moody's downgrade from A1 to A2 in November 2025 and a paused buyback program, signals tightening financial flexibility. The Converse segment is in active reset with 37% revenue decline, 970 bps gross margin contraction, and employee severance charges. No prior filing is available for QoQ balance sheet comparison.