Nike Inc (NKE)
Working capital 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 current assets | US$ in thousands | 23,362,000 | 25,382,000 | 25,202,000 | 28,213,000 | 26,291,000 |
| Total current liabilities | US$ in thousands | 10,566,000 | 10,593,000 | 9,256,000 | 10,730,000 | 9,674,000 |
| Working capital turnover | 3.62 | 3.47 | 3.21 | 2.67 | 2.68 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $46,309,000K ÷ ($23,362,000K – $10,566,000K)
= 3.62
The working capital turnover ratios for Nike Inc. over the specified period demonstrate a general upward trend, indicating improvements in the efficiency with which the company utilizes its working capital to generate sales. Specifically, the ratio was 2.68 as of May 31, 2021, and remained relatively stable at 2.67 in 2022, reflecting a steady state of operational efficiency during that year. Subsequent periods show a noticeable increase: reaching 3.21 in 2023, then rising to 3.47 in 2024, and further to 3.62 in 2025.
This progressive increase suggests that Nike has been enhancing its operational efficiency, possibly through better inventory management, receivables collection, and overall asset utilization. The rising trend indicates that the company is generating higher sales relative to its working capital base, which is favorable from an efficiency standpoint. The consistent improvement over the years could also reflect strategic initiatives aimed at optimizing working capital or more effective management of current assets and liabilities.
Overall, the data indicate that Nike Inc. has been successfully increasing its working capital turnover, thereby making more efficient use of its short-term resources to support sales growth.
Peer comparison
May 31, 2025