Nike Inc (NKE)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 45,897,000 | 45,998,000 | 45,480,000 | 45,645,000 | 45,302,000 | 44,464,000 | 42,728,000 | 40,903,000 | 40,035,000 | 39,700,000 | 39,137,000 | 38,897,000 | 37,601,000 | 34,321,000 | 34,556,000 | 33,999,000 | 34,288,000 | 36,094,000 | 35,543,000 | 34,848,000 |
| Inventory | US$ in thousands | 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 | 7,367,000 | 5,807,000 | 6,199,000 | 5,835,000 |
| Inventory turnover | 6.10 | 5.95 | 5.70 | 5.25 | 5.36 | 4.99 | 4.58 | 4.23 | 4.75 | 5.16 | 6.02 | 5.81 | 5.49 | 5.13 | 5.67 | 5.07 | 4.65 | 6.22 | 5.73 | 5.97 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $45,897,000K ÷ $7,519,000K
= 6.10
Nike Inc's inventory turnover has shown a generally positive trend over the past few years, indicating the company's ability to efficiently manage its inventory levels. The inventory turnover ratio has gradually increased from 4.65 in August 2020 to 6.10 in May 2024, suggesting that Nike has been more effective in selling and replenishing its inventory within a given period.
A higher inventory turnover ratio signifies that Nike is selling products more quickly relative to the amount of inventory it holds. This can be attributed to effective inventory management practices, such as demand forecasting, efficient supply chain processes, and effective marketing strategies.
Overall, the increasing trend in inventory turnover for Nike indicates strong operational efficiency in managing its inventory levels, which ultimately contributes to the company's financial performance and profitability.
Peer comparison
May 31, 2024
May 31, 2024