Nike Inc (NKE)
Days of inventory on hand (DOH)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.10 | 5.95 | 5.70 | 5.25 | 5.36 | 4.99 | 4.58 | 4.23 | 4.75 | 5.16 | 6.02 | 5.81 | 5.49 | 5.13 | 5.67 | 5.07 | 4.65 | 6.22 | 5.73 | 5.97 | |
| DOH | days | 59.80 | 61.31 | 64.04 | 69.55 | 68.11 | 73.10 | 79.67 | 86.22 | 76.77 | 70.79 | 60.68 | 62.86 | 66.53 | 71.18 | 64.33 | 71.98 | 78.42 | 58.72 | 63.66 | 61.12 |
May 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.10
= 59.80
Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds onto its inventory before selling it. A lower DOH indicates that a company is efficiently managing its inventory, while a higher DOH may suggest potential inefficiencies in inventory management or slower inventory turnover.
Analyzing the historical data of Nike Inc's DOH, we can observe fluctuations in the ratio over the past few years. The trend shows variability in inventory management efficiency, with periods of both improvement and deterioration in the holding period of inventory.
For example, the DOH increased from 58.72 days in August 2019 to 79.67 days in November 2022, indicating a prolonged inventory holding period during this period. Conversely, there were instances of improvement in inventory management, such as the decrease in DOH from 79.67 days in November 2022 to 61.31 days in February 2024, suggesting a more efficient inventory turnover.
Overall, monitoring Nike's DOH can provide insights into the company's inventory management practices and their effectiveness in optimizing inventory levels to meet customer demand while minimizing holding costs. It is crucial for Nike to strike a balance between maintaining adequate inventory levels to support sales and avoiding excessive stockpiling that could tie up capital and result in potential obsolescence risks.
Peer comparison
May 31, 2024
See also:
Nike Inc Average Inventory Processing Period (Quarterly Data)