Nike Inc (NKE)
Receivables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,500,000 | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 |
| Receivables | US$ in thousands | 4,427,000 | 4,131,000 | 4,667,000 | 4,463,000 | 2,749,000 |
| Receivables turnover | 11.63 | 12.45 | 10.01 | 10.01 | 13.60 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $51,500,000K ÷ $4,427,000K
= 11.63
The receivables turnover for Nike Inc has fluctuated over the past five years. The ratio was 11.63 in 2024, compared to 12.45 in 2023, indicating a slight decrease. This suggests that the company took approximately 11.63 days to collect its accounts receivable in 2024. However, it is important to note that a higher receivables turnover generally indicates that the company is more efficient in collecting payments from its customers.
Looking at the trend over the past five years, there was a significant decrease in the receivables turnover ratio from 13.60 in 2020 to 10.01 in both 2022 and 2021. This indicates that the company took longer to collect its receivables in those years compared to 2020. It is worth investigating the reasons behind this decrease in efficiency in accounts receivable management.
Overall, while the receivables turnover ratio for Nike Inc experienced fluctuations, it is crucial to monitor it consistently to ensure effective cash flow management and timely collection of receivables.
Peer comparison
May 31, 2024