Nike Inc (NKE)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 46,309,000 | 51,362,000 | 51,217,000 | 46,710,000 | 44,538,000 |
| Receivables | US$ in thousands | 4,717,000 | 4,427,000 | 4,131,000 | 4,667,000 | 4,463,000 |
| Receivables turnover | 9.82 | 11.60 | 12.40 | 10.01 | 9.98 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $46,309,000K ÷ $4,717,000K
= 9.82
The receivables turnover ratio for Nike Inc. over the specified periods indicates fluctuations in the company's efficiency in collecting accounts receivable.
In the fiscal year ending May 31, 2021, the ratio was 9.98, suggesting that receivables were collected approximately ten times during the year. This ratio remained relatively stable in the subsequent year, with a slight increase to 10.01 in 2022, reflecting consistency in receivables collection efficiency.
A notable improvement occurred by May 31, 2023, when the receivables turnover rose to 12.40. This increase signifies an enhanced efficiency in collecting receivables, implying that the company was able to convert its receivables into cash more quickly during this period. The ratio then slightly decreased to 11.60 in 2024 but remained substantially higher than the earlier years, indicating sustained effectiveness in receivables management.
However, by May 31, 2025, the ratio declined to 9.82, approaching the levels observed in 2021. This decrease could suggest a slight slowdown in receivables collection efficiency, or potentially changes in credit policies, customer payment behavior, or other operational factors affecting cash collection.
Overall, the trend demonstrates that Nike Inc.'s receivables turnover experienced a significant peak in 2023, suggesting improved receivables management during that period, followed by a modest decrease in 2024 and 2025, moving toward prior levels of collection efficiency.
Peer comparison
May 31, 2025