Nike Inc (NKE)

The analysis of Nike Inc.'s Days of Sales Outstanding (DSO) over the observed period reveals notable fluctuations indicative of underlying trends in receivables management and customer payment behavior. Starting from May 31, 2020, with a DSO of approximately 26.83 days, the metric increased significantly, reaching a peak of around 40.41 days by November 30, 2022. This upward trajectory implies a lengthening of the average collection period, which could reflect extended credit terms, shifts in customer payment practices, or potential delays in receivables collection.

Following this peak, the DSO demonstrated some variability, decreasing to approximately 29.44 days on May 31, 2023, before experiencing a slight uptick to roughly 33.86 days by November 30, 2023. The data continues to show a modest decline to approximately 32.03 days as of February 29, 2024, though the figure remains higher than earlier years.

From a broader perspective, the trends suggest that Nike experienced a period of extended receivables in the fiscal years following May 2020, with the DSO reaching levels that could indicate more lenient credit policies or changes in the timing of collections. The subsequent reduction in DSO starting around mid-2023 hints at efforts to improve collection efficiency or a shift in customer payment behaviors.

Overall, while DSO remained elevated compared to pre-2020 levels, the observed fluctuations reflect ongoing management of receivables and credit policies. The moderate decline in recent periods may signal efforts to optimize cash flow and receivables turnover, though the DSO still indicates a somewhat extended collection cycle relative to earlier years.

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Feb 28, 2025