Nike Inc (NKE)
Days of sales outstanding (DSO)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.82 | 11.60 | 12.40 | 10.01 | 9.98 | |
| DSO | days | 37.18 | 31.46 | 29.44 | 36.47 | 36.58 |
May 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.82
= 37.18
The data indicates that Nike Inc's days of sales outstanding (DSO) has experienced fluctuations over the specified period from May 2021 to May 2025. Specifically, the DSO was 36.58 days as of May 31, 2021, which slightly decreased to 36.47 days by May 31, 2022. This marginal reduction suggests a minor improvement in the company's efficiency in collecting receivables during that year.
However, a notable decline occurred by May 31, 2023, when DSO decreased to 29.44 days. This represents a significant reduction and implies a more efficient receivables collection process, possibly driven by improved credit policies, stronger customer relationships, or more effective collection strategies.
Following this improvement, the DSO increased again to 31.46 days by May 31, 2024, indicating a slight easing in collection efficiency. This could reflect changes in credit terms, customer payment behaviors, or external economic factors affecting receivables turnover.
By May 31, 2025, the DSO further rose to 37.18 days, which exceeds the levels observed in 2021 and 2022, suggesting a deterioration in collection performance or a strategic shift in credit policies. This upward trend may also indicate potential challenges in cash flow management or increased credit extended to customers.
Overall, the trend from 2021 through 2025 shows initial stability followed by a period of enhancement in receivables collection efficiency, peaking at the lowest DSO in 2023, before gradually increasing again towards 2025. These movements reflect dynamic changes in the company's credit and collections environment over the analyzed period.
Peer comparison
May 31, 2025