Nike Inc (NKE)
Inventory turnover
| 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 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 34,345,000 |
| Inventory | US$ in thousands | 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 | 5,622,000 |
| Inventory turnover | 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 | 6.11 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $45,998,000K ÷ $7,726,000K
= 5.95
Nike Inc's inventory turnover has shown fluctuations over the past 20 financial reporting periods. Inventory turnover is a crucial financial ratio that measures how effectively a company manages its inventory by evaluating how many times a company's inventory is sold and replaced during a specific period.
The trend in Nike's inventory turnover indicates that the company has generally been efficient in managing its inventory levels over the analyzed periods. The inventory turnover ratio has ranged from a low of 4.23 to a high of 6.22, with an average turnover ratio of approximately 5.48.
The increase in inventory turnover from 4.23 in August 2022 to 6.22 in February 2020 suggests that Nike improved its inventory management efficiency during that period. Conversely, the decrease in inventory turnover from 6.22 in February 2020 to 4.65 in May 2020 indicates a potential slowdown in inventory turnover efficiency.
Overall, Nike's inventory turnover ratios over the 20 periods indicate that the company has been relatively consistent in efficiently managing its inventory levels, with some fluctuations in performance. It is essential for Nike to monitor its inventory turnover ratio closely to ensure optimal inventory management practices in line with its operational needs and market demands.
Peer comparison
Feb 29, 2024
Feb 29, 2024