Nike Inc (NKE)
Total asset turnover
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 | 38,884,000 |
| Total assets | US$ in thousands | 37,531,000 | 40,321,000 | 37,740,000 | 31,342,000 | 23,717,000 |
| Total asset turnover | 1.37 | 1.16 | 1.18 | 1.19 | 1.64 |
May 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $51,430,000K ÷ $37,531,000K
= 1.37
The total asset turnover ratio for Nike, Inc. has fluctuated over the past five years. In 2019, the ratio stood at 1.65, declining to 1.19 in 2020 before increasing to 1.18 in 2021 and further to 1.16 in 2022. The most recent data for May 31, 2023, indicates a notable increase to 1.36. This suggests that the company generated $1.36 in revenue for every dollar of total assets in 2023, reflecting an improvement in the efficiency of asset utilization. It is important to note that a higher total asset turnover ratio indicates better efficiency in generating revenue from assets. Therefore, Nike's recent increase in total asset turnover may be viewed positively as it indicates improved utilization of assets to generate sales. However, further analysis of company operations and industry benchmarks would be essential to fully understand the implications of this change.
Peer comparison
May 31, 2023