Nike Inc (NKE)
Inventory turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 45,494,000 | 45,302,000 | 40,035,000 | 37,601,000 | 34,288,000 |
| Inventory | US$ in thousands | 7,519,000 | 8,454,000 | 8,420,000 | 6,854,000 | 7,367,000 |
| Inventory turnover | 6.05 | 5.36 | 4.75 | 5.49 | 4.65 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $45,494,000K ÷ $7,519,000K
= 6.05
Nike Inc's inventory turnover has shown a fluctuating trend over the past five years. The ratio has ranged from a low of 4.65 in 2020 to a high of 6.05 in 2024. A higher inventory turnover indicates that Nike is selling its products more efficiently and quickly, converting inventory into sales at a faster rate.
In general, the increasing trend from 2020 to 2024 suggests that Nike has been managing its inventory more effectively over time. This improvement could be attributed to better inventory management practices, streamlining of production processes, or changes in consumer demand.
However, the slight decrease in inventory turnover in 2023 compared to 2024 warrants further investigation. It may indicate that Nike's inventory management was less efficient that year, potentially leading to excess inventory or slower sales.
Overall, Nike's inventory turnover ratios reflect its ability to efficiently manage inventory levels and sell products in the marketplace. Continued monitoring of this ratio will be important to ensure optimal inventory management practices and operational efficiency.
Peer comparison
May 31, 2024