Nike Inc (NKE)
Payables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 45,494,000 | 45,302,000 | 40,035,000 | 37,601,000 | 34,288,000 |
| Payables | US$ in thousands | 2,851,000 | 2,862,000 | 3,358,000 | 2,836,000 | 2,248,000 |
| Payables turnover | 15.96 | 15.83 | 11.92 | 13.26 | 15.25 |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $45,494,000K ÷ $2,851,000K
= 15.96
Nike Inc's payables turnover has exhibited a fluctuating trend over the past five years. In 2024, the payables turnover ratio increased to 15.96, indicating that the company took approximately 15.96 days to pay off its accounts payable during the year. This is a slight improvement compared to the previous year, where the ratio was 15.83.
The peak performance in terms of payables turnover was recorded in 2020, with a ratio of 15.25, suggesting efficient management of accounts payable during that period. However, there was a notable dip in 2022, where the ratio dropped to 11.92, signaling a potential delay in paying off creditors.
Overall, Nike Inc's ability to efficiently manage its payables has shown variability in recent years, with a general trend towards improvement in more recent periods. It is essential for the company to closely monitor this ratio to ensure effective cash flow management and maintain healthy relationships with suppliers.
Peer comparison
May 31, 2024