Nike Inc (NKE)
Payables turnover
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 21,162,000 |
| Payables | US$ in thousands | 3,106,000 | 3,255,000 | 3,357,000 | 2,851,000 | 2,340,000 | 2,709,000 | 2,738,000 | 2,862,000 | 2,675,000 | 2,810,000 | 3,371,000 | 3,358,000 | 2,770,000 | 2,795,000 | 2,135,000 | 2,836,000 | 2,257,000 | 2,154,000 | 1,983,000 | 2,248,000 |
| Payables turnover | 8.65 | 8.34 | 8.22 | 9.99 | 12.28 | 10.66 | 10.62 | 10.11 | 10.63 | 9.68 | 7.64 | 7.51 | 9.09 | 8.95 | 11.84 | 8.67 | 9.68 | 10.14 | 10.70 | 9.41 |
February 28, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $26,863,000K ÷ $3,106,000K
= 8.65
The analysis of Nike Inc.'s payables turnover ratio over the period from May 2020 to February 2025 indicates fluctuations that reflect changes in the company's payment policies and operational efficiency regarding accounts payable management.
At the beginning of the period, the payables turnover stood at 9.41 times in May 2020, suggesting that, on average, Nike settled its accounts payable approximately 9.4 times annually. This ratio increased to 10.70 by August 2020, indicating a relatively quicker payment cycle, and remained elevated at 10.14 in November 2020. However, by May 2021, the ratio decreased to 8.67, signaling a slight slowdown in paying suppliers, which could imply extended credit terms or strategic cash flow management.
The ratio then saw an upward movement, reaching a peak of 11.84 in August 2021, its highest in the observed period, suggesting a period of accelerated payments or possibly shorter credit terms negotiated with suppliers. Conversely, the ratio declined again to 8.95 by November 2021, and slightly stabilized around 9 in early 2022.
From May 2022 onwards, the trend exhibits further variability. The ratio decreased to 7.51 in May 2022, indicative of a lengthening of the payable cycle or more favorable credit terms. It remained relatively stable around 7.6 to 9.7 through 2022 and into early 2023. Notably, the ratio rose substantially to 10.63 in February 2023, surpassing previous levels and potentially indicating a quicker turnover or changes in supplier payment terms.
Post-February 2023, the ratio remained relatively stable, averaging from approximately 8.2 to 10.66 through August 2023 and November 2023, with a peak of 12.28 in February 2024. This spike could reflect a strategic effort to pay liabilities more promptly or the negotiation of shorter credit terms. Subsequently, the ratio declined again to around 8.2-9.0 in the following quarters.
Overall, Nike's payables turnover ratio during this period demonstrates a dynamic approach to managing its accounts payable, oscillating between periods of accelerated payments and elongated cycles. These fluctuations may correspond to strategic changes in supplier negotiations, liquidity management, or responses to broader market conditions. The periods of higher turnover ratios suggest a more prompt settlement of liabilities, potentially indicating positive liquidity or supplier relationship strategies, whereas lower ratios reflect extended payables management, possibly to optimize cash flow.
Peer comparison
Feb 28, 2025