Nike Inc (NKE)
Total asset 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 |
| Total assets | US$ in thousands | 36,579,000 | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 |
| Total asset turnover | 1.27 | 1.35 | 1.36 | 1.16 | 1.18 |
May 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $46,309,000K ÷ $36,579,000K
= 1.27
The analysis of Nike Inc.'s total asset turnover ratio over the observed period reveals varying levels of asset efficiency in generating sales revenue. Relative to the data provided:
- As of May 31, 2021, the ratio stood at 1.18, indicating that Nike generated $1.18 in sales for every dollar of assets employed. This suggests a moderate utilization of assets to produce revenue during that period.
- By May 31, 2022, the ratio slightly declined to 1.16, reflecting a marginal decrease in asset efficiency. This could be due to increased asset bases without a proportional increase in sales or other operational factors.
- Between May 31, 2022, and May 31, 2023, the ratio experienced a substantial improvement, rising to 1.36. This notable increase signifies enhanced asset utilization, enabling Nike to generate more sales per dollar of assets.
- The ratio remained relatively steady at 1.35 as of May 31, 2024, indicating maintained efficiency levels with minor fluctuations. This stabilization suggests consistent operational performance in leveraging assets.
- Moving into the period of May 31, 2025, the ratio decreased somewhat to 1.27. Although still higher than the 2022 level, this modest decline may point to a slight reduction in asset efficiency or changes in asset composition.
Overall, Nike Inc.'s total asset turnover demonstrates a pattern of fluctuation, with notable improvement in 2023 followed by stabilization and a slight decrease in 2025. The increase prior to 2023 indicates periods of effective asset management leading to higher revenue generation, whereas the subsequent decrease suggests a need to examine whether asset bases are expanding faster than sales or if operational efficiency is experiencing any moderation.
Peer comparison
May 31, 2025