Nike Inc (NKE)
Payables 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 |
| Payables | US$ in thousands | 3,479,000 | 2,851,000 | 2,862,000 | 3,358,000 | 2,836,000 |
| Payables turnover | 7.62 | 9.99 | 10.11 | 7.51 | 8.67 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $26,519,000K ÷ $3,479,000K
= 7.62
The payables turnover ratio for Nike Inc. over the period from May 31, 2021, to May 31, 2025, demonstrates notable fluctuations. In 2021, the ratio stood at 8.67, indicating that Nike's accounts payable were settled approximately 8.67 times during the fiscal year, reflecting a certain level of efficiency in managing trade payables. By May 31, 2022, the ratio decreased to 7.51, suggesting that the company was settling its payables less frequently, which could indicate extended credit terms or a more conservative approach to cash management during that period.
In the subsequent year, May 31, 2023, the ratio increased significantly to 10.11, implying an improvement in the frequency of paying off obligations or possibly a reduction in accounts payable balances relative to cost of goods sold (COGS). This upward trend suggests a potentially more aggressive payment strategy or improved operational efficiency in settling liabilities.
The ratio slightly declined to 9.99 by May 31, 2024, maintaining a high level of payables turnover but indicating a modest step back from the peak observed in 2023. This may reflect a strategic shift to slightly more extended payment terms while still maintaining relatively swift settlement of payables.
By May 31, 2025, the ratio decreased further to 7.62, nearing the 2022 level. This decline could signify a relaxation in the speed of paying suppliers, possibly due to changes in supplier negotiation terms, alterations in supply chain management strategies, or shifts in liquidity management policies.
Overall, Nike’s payables turnover ratio experienced variability throughout these years, with the highest level observed in 2023. The trends suggest the company's shifting approach to managing its payables, balancing between optimizing cash flow and maintaining supplier relationships. The fluctuations may also reflect broader operational or strategic adjustments that impact the pace at which Nike settles its accounts payable obligations.
Peer comparison
May 31, 2025