Nike Inc (NKE)
Fixed asset turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,500,000 | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 |
| Property, plant and equipment | US$ in thousands | 5,000,000 | 5,081,000 | 4,791,000 | 4,904,000 | 4,866,000 |
| Fixed asset turnover | 10.30 | 10.12 | 9.75 | 9.11 | 7.68 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $51,500,000K ÷ $5,000,000K
= 10.30
The fixed asset turnover ratio for Nike Inc has been consistently increasing over the past five years, indicating the company's ability to generate sales from its fixed assets more efficiently. The ratio has improved from 7.68 in 2020 to 10.30 in 2024, reflecting a positive trend in utilizing its fixed assets effectively to generate revenue. This suggests that Nike has been able to make better use of its investment in property, plant, and equipment to drive sales growth.
A high fixed asset turnover ratio signifies that Nike is effectively managing and utilizing its fixed assets to generate revenue, which is a positive indicator of operational efficiency and asset productivity. This trend suggests that the company is efficiently utilizing its fixed assets to drive sales growth and maximize profitability. Overall, the increasing trend in the fixed asset turnover ratio for Nike Inc reflects positively on the company's operational performance and management of its fixed assets.
Peer comparison
May 31, 2024