Nike Inc (NKE)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.62 | 11.40 | 10.78 | 10.84 | 12.40 | 11.22 | 9.03 | 9.51 | 10.01 | 12.22 | 12.35 | 10.63 | 9.99 | 10.49 | 10.30 | 9.78 | 13.56 | 9.21 | 8.50 | 10.55 | |
| DSO | days | 31.42 | 32.01 | 33.85 | 33.66 | 29.44 | 32.53 | 40.40 | 38.39 | 36.48 | 29.86 | 29.55 | 34.33 | 36.53 | 34.80 | 35.45 | 37.30 | 26.91 | 39.62 | 42.96 | 34.58 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.62
= 31.42
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it implies a more efficient use of working capital.
Analyzing the DSO trend for Nike Inc over the past few quarters, we observe some fluctuations in the metric. In the most recent period ending May 31, 2024, the DSO stood at 31.42 days, slightly lower compared to the preceding quarter's 32.01 days. This indicates that Nike improved its collections process and converted sales into cash more efficiently.
Looking back further, there was a notable decrease in DSO from the quarter ending May 31, 2020, where it was at 39.62 days, to the following quarter ending August 31, 2020, with a significant improvement to 26.91 days. This substantial reduction in DSO suggests that Nike managed its accounts receivable more effectively during that period.
Overall, Nike's DSO has shown variability over the past quarters, but the recent trend indicates a positive direction with lower values. It will be important to continue monitoring the DSO metric to ensure efficient cash flow management and timely collection of receivables.
Peer comparison
May 31, 2024
See also:
Nike Inc Average Receivable Collection Period (Quarterly Data)