Nike Inc (NKE)

The analysis of Nike Inc.'s days of inventory on hand (DOH) over the specified period reveals notable fluctuations that provide insights into the company's inventory management and operational efficiency. As of May 31, 2021, the DOH stood at approximately 101.79 days, indicating that, on average, Nike held inventory for around 102 days before selling it. By May 31, 2022, this figure increased markedly to 121.81 days, reflecting a substantial prolongation in inventory holding periods. Such an increase could suggest challenges in inventory turnover, possibly due to overstocking, slower sales, or strategic stockpiling amid external uncertainties.

In subsequent periods, a decline in DOH is observed: by May 31, 2023, the figure decreased to 106.68 days, signaling an improvement in inventory turnover but still remaining above the 2021 level. This reduction may indicate efforts to streamline inventory or respond to changing demand conditions. Continuing this trend, the DOH further declined to 96.38 days by May 31, 2024, achieving a notable improvement in inventory efficiency.

However, by May 31, 2025, the DOH increased slightly to 103.08 days, suggesting a minor elongation in the average duration inventory is held before sale. This slight uptick could result from inventory adjustments, seasonal factors, or strategic inventory accumulation in anticipation of future sales.

Overall, the data illustrates a cycle of inventory management adjustments, with periods of accumulation and reduction. The current level of approximately 103 days in 2025 positions Nike to maintain a relatively efficient inventory cycle, although it remains above the 2021 baseline. Analysis of these fluctuations can inform assessments of inventory control policies, supply chain responsiveness, and demand forecasting practices within Nike's operational framework.

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May 31, 2025