Nike Inc (NKE)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 51,426,000 | 51,604,000 | 51,565,000 | 51,492,000 | 51,217,000 | 50,639,000 | 49,120,000 | 47,162,000 | 46,696,000 | 46,785,000 | 46,271,000 | 46,157,000 | 44,591,000 | 38,480,000 | 38,227,000 | 37,310,000 | 37,282,000 | 41,210,000 | 40,717,000 | 49,139,000 |
| Property, plant and equipment | US$ in thousands | 5,000,000 | 5,082,000 | 5,153,000 | 5,109,000 | 5,081,000 | 4,939,000 | 4,854,000 | 4,778,000 | 4,791,000 | 4,806,000 | 4,812,000 | 4,869,000 | 4,904,000 | 4,958,000 | 4,959,000 | 4,969,000 | 4,866,000 | 4,783,000 | 4,668,000 | 4,615,000 |
| Fixed asset turnover | 10.29 | 10.15 | 10.01 | 10.08 | 10.08 | 10.25 | 10.12 | 9.87 | 9.75 | 9.73 | 9.62 | 9.48 | 9.09 | 7.76 | 7.71 | 7.51 | 7.66 | 8.62 | 8.72 | 10.65 |
May 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $51,426,000K ÷ $5,000,000K
= 10.29
The fixed asset turnover ratio of Nike Inc has been relatively stable over the past few years, ranging between 7.51 and 10.29. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio signifies that the company is efficiently utilizing its fixed assets to generate sales.
Nike's fixed asset turnover ratio has consistently been above 7.5, which indicates that the company efficiently generates revenue from its fixed assets. The slight fluctuations in the ratio over the years are normal and may be influenced by various factors such as changes in production efficiency, asset utilization, or the overall business environment.
The company's ability to maintain a high fixed asset turnover ratio suggests effective management of its fixed assets, which is essential for long-term success and profitability. Overall, Nike Inc's fixed asset turnover ratio reflects a solid performance in effectively generating revenue from its fixed assets.
Peer comparison
May 31, 2024