Nike Inc (NKE)
Inventory turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 26,519,000 | 26,863,000 | 27,136,000 | 27,588,000 | 28,475,000 | 28,733,000 | 28,885,000 | 29,072,000 | 28,925,000 | 28,426,000 | 27,211,000 | 25,751,000 | 25,231,000 | 25,189,000 | 25,023,000 | 25,275,000 | 24,576,000 | 21,847,000 | 21,840,000 | 21,226,000 |
| Inventory | US$ in thousands | 7,489,000 | 7,539,000 | 7,981,000 | 8,253,000 | 7,519,000 | 7,726,000 | 7,979,000 | 8,698,000 | 8,454,000 | 8,905,000 | 9,326,000 | 9,662,000 | 8,420,000 | 7,700,000 | 6,506,000 | 6,699,000 | 6,854,000 | 6,693,000 | 6,090,000 | 6,705,000 |
| Inventory turnover | 3.54 | 3.56 | 3.40 | 3.34 | 3.79 | 3.72 | 3.62 | 3.34 | 3.42 | 3.19 | 2.92 | 2.67 | 3.00 | 3.27 | 3.85 | 3.77 | 3.59 | 3.26 | 3.59 | 3.17 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $26,519,000K ÷ $7,489,000K
= 3.54
The inventory turnover ratio for Nike Inc. has exhibited notable fluctuations over the period from August 2020 to May 2025, reflecting operational and inventory management trends. Starting at 3.17 in August 2020, the ratio increased consistently, reaching a peak of 3.85 in November 2021, indicating improved inventory management and faster sales cycles during this period.
Following this peak, a decline is observed, with the ratio decreasing to 2.67 by August 2022. This decline may suggest a buildup of inventory levels, slower sales, or changes in supply chain dynamics. However, from late 2022 onward, the ratio shows signs of recovery, rising again to 3.62 in November 2023, and further increasing to 3.79 by February 2024. This upward trend indicates improvements in inventory turnover, possibly due to enhanced sales performance, inventory reduction strategies, or inventory management optimizations.
Subsequently, the ratio stabilizes around 3.34 in August 2024, slightly declining to 3.40 in November 2024, but then rising again to 3.56 by February 2025, suggesting a fairly consistent cycle of inventory utilization in recent periods.
Overall, the fluctuations in the inventory turnover ratio reflect a dynamic environment with periods of inventory accumulation and subsequent clearance. The recent trend signifies a healthy level of inventory efficiency, aligning with the company’s strategic initiatives to optimize sales and reduce excess inventory.
Peer comparison
May 31, 2025
May 31, 2025