Nike Inc (NKE)
Fixed asset turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 47,818,000 | 48,978,000 | 50,012,000 | 51,362,000 | 51,581,000 | 51,542,000 | 51,469,000 | 51,217,000 | 50,626,000 | 49,107,000 | 47,149,000 | 46,710,000 | 46,820,000 | 46,306,000 | 46,192,000 | 44,538,000 | 38,507,000 | 38,254,000 | 37,337,000 | 37,403,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 8,096,000 | 8,048,000 | 8,004,000 | 4,939,000 | 7,663,000 | 7,658,000 | 7,717,000 | 7,765,000 | 7,829,000 | 7,947,000 | 8,017,000 | 4,958,000 | 4,959,000 | 4,969,000 | 4,866,000 |
| Fixed asset turnover | — | — | — | — | — | 6.37 | 6.40 | 6.40 | 10.25 | 6.41 | 6.16 | 6.05 | 6.03 | 5.91 | 5.81 | 5.56 | 7.77 | 7.71 | 7.51 | 7.69 |
February 28, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $47,818,000K ÷ $—K
= —
The fixed asset turnover ratio for Nike Inc. has demonstrated notable fluctuations over the analyzed periods. Initially, from May 31, 2020, through February 28, 2021, the ratio remained relatively stable, ranging between 7.69 and 7.77, indicating a consistent level of efficiency in generating sales from fixed assets during this period.
Subsequently, a significant decline is observed starting from May 31, 2021, through February 28, 2022. The ratio decreased from 5.56 to 6.03, reflecting reduced asset utilization efficiency in translating fixed assets into sales during this period. This downward trend continued into 2022, with the ratio stabilizing around 6.05 to 6.41, suggesting a period of relative steadiness but at a lower efficiency level compared to the early period.
The most notable shift occurs between February 28, 2022, and February 28, 2023, where the ratio sharply increases to 10.25, signaling a significant improvement in asset utilization efficiency—meaning the company generated substantially more sales per dollar of fixed assets. This could point to strategic investments, operational improvements, or better asset management strategies during that timeframe.
Following this peak, the ratio decreases again to approximately 6.40-6.41 in the subsequent periods up to August 31, 2023, suggesting a normalization or slight reduction in efficiency post the peak period. The ratio remains relatively stable near 6.37 to 6.40 thereafter, indicating a consistent level of fixed asset utilization.
Overall, the trend in Nike's fixed asset turnover ratio displays periods of stability, decline, and a notable spike in early 2023. The sharp increase during this latter period is likely associated with strategic changes or operational efficiencies that temporarily enhanced sales relative to fixed assets. However, the ratios post-2023 suggest a return to a more moderate and stable efficiency level.
Peer comparison
Feb 28, 2025