Nike Inc (NKE)
Days of sales outstanding (DSO)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.63 | 12.45 | 10.01 | 10.01 | 13.60 | |
| DSO | days | 31.38 | 29.32 | 36.45 | 36.46 | 26.84 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.63
= 31.38
Nike Inc's Days of Sales Outstanding (DSO) is a measure that indicates the average number of days a company takes to collect revenue after making a sale. Over the past five years, Nike's DSO has fluctuated, showing both improvements and setbacks.
In the most recent fiscal year ending on May 31, 2024, Nike's DSO stood at 31.38 days, which is slightly higher compared to the prior year's figure of 29.32 days. This increase in DSO suggests that Nike took longer to collect its sales revenue in 2024 compared to 2023.
Looking further back, in 2022, Nike's DSO was relatively high at 36.45 days, followed by a similar figure in 2021 at 36.46 days. This indicates that Nike faced challenges in efficiently collecting payments from customers in those years.
On the positive side, Nike's DSO showed significant improvement in 2020 with only 26.84 days, representing a more efficient collection of sales revenue compared to the following years.
Overall, Nike's DSO trend reflects some variability in its collection efficiency over the past five years, with fluctuations indicating potential changes in customer payment behavior, credit policies, or collection practices. Further analysis of the underlying factors influencing DSO can help the company better manage its working capital and liquidity.
Peer comparison
May 31, 2024