Nike Inc (NKE)
Inventory turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 26,519,000 | 28,475,000 | 28,925,000 | 25,231,000 | 24,576,000 |
| Inventory | US$ in thousands | 7,489,000 | 7,519,000 | 8,454,000 | 8,420,000 | 6,854,000 |
| Inventory turnover | 3.54 | 3.79 | 3.42 | 3.00 | 3.59 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $26,519,000K ÷ $7,489,000K
= 3.54
The inventory turnover ratio for Nike Inc. from May 31, 2021, to May 31, 2025, demonstrates noteworthy fluctuations over the four-year period. Starting at 3.59 times in 2021, the ratio declined to 3.00 times in 2022, indicating an increase in inventory levels relative to sales or potentially slower inventory liquidation during that period. This decline may reflect strategic inventory buildup in anticipation of future demand or supply chain adjustments.
Subsequently, the ratio recovered to 3.42 in 2023, suggesting an improvement in inventory management efficiency or increased sales velocity. The upward movement continued into 2024, reaching 3.79, which signifies a more efficient inventory turnover and potentially better product sell-through rates. However, in 2025, the ratio slightly decreased to 3.54, indicating a marginal slowdown in inventory turnover compared to the previous year but remaining higher than the 2023 figure.
Overall, the trend suggests that Nike Inc.'s inventory management improved after a dip in 2022, with the highest turnover occurring in 2024. The variations could be attributed to shifts in sales performance, supply chain efficiencies, or changes in inventory policies. Maintaining a higher inventory turnover ratio generally reflects effective inventory management, leading to reduced holding costs and improved liquidity.
Peer comparison
May 31, 2025