Nike Inc (NKE)
Payables turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 26,519,000 | 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 |
| Payables | US$ in thousands | 3,479,000 | 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 |
| Payables turnover | 7.62 | 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 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $26,519,000K ÷ $3,479,000K
= 7.62
The payables turnover ratio for Nike Inc exhibits fluctuations over the analyzed period from August 2020 through May 2025. The ratio indicates how efficiently the company manages its accounts payable, reflecting the number of times it pays off its suppliers within a fiscal period.
Initially, the ratio was relatively high at 10.70 times in August 2020, suggesting Nike paid its suppliers approximately 10.7 times annually. The ratio declined through the subsequent quarters, reaching a low of 7.51 in May 2022, which implies a lengthening of the average payment period, potentially reflecting increased leverage in supplier payments or changes in credit terms.
From August 2021 onwards, there was a notable increase, with the ratio reaching 11.84, indicating a faster payables turnover and shorter payment periods. This upward trend persisted with some fluctuations, peaking at 12.28 in February 2024. This suggests Nike strengthened its accounts payable management, possibly indicating more prompt payments or tighter credit terms.
In the most recent periods, the ratio decreased slightly to 8.22 in August 2024 and further to 8.34 in November 2024 before rising again to 8.65 by February 2025. These shifts could reflect short-term operational adjustments or strategic changes in supplier credit arrangements.
Overall, the payables turnover ratio exhibits cyclical fluctuations, with periods of acceleration and deceleration. The recent trend suggests a moderate improvement in the efficiency of accounts payable management, aligning with strategic financial practices. The pattern reflects a dynamic approach to managing supplier payments, balancing liquidity considerations with operational requirements.
Peer comparison
May 31, 2025