Nike Inc (NKE)
Working capital turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 46,309,000 | 47,818,000 | 48,978,000 | 50,012,000 | 51,362,000 | 51,581,000 | 51,542,000 | 51,469,000 | 51,217,000 | 50,626,000 | 49,107,000 | 47,149,000 | 46,710,000 | 46,820,000 | 46,306,000 | 46,192,000 | 44,538,000 | 38,507,000 | 38,254,000 | 37,337,000 |
| Total current assets | US$ in thousands | 23,362,000 | 24,609,000 | 24,980,000 | 25,040,000 | 25,382,000 | 24,753,000 | 24,631,000 | 24,250,000 | 25,202,000 | 26,035,000 | 27,447,000 | 28,877,000 | 28,213,000 | 26,962,000 | 27,177,000 | 26,390,000 | 26,291,000 | 24,700,000 | 23,607,000 | 21,937,000 |
| Total current liabilities | US$ in thousands | 10,566,000 | 11,223,000 | 11,246,000 | 10,628,000 | 10,593,000 | 9,029,000 | 8,999,000 | 8,461,000 | 9,256,000 | 9,548,000 | 10,199,000 | 10,919,000 | 10,730,000 | 8,818,000 | 8,857,000 | 8,269,000 | 9,674,000 | 8,894,000 | 8,871,000 | 8,619,000 |
| Working capital turnover | 3.62 | 3.57 | 3.57 | 3.47 | 3.47 | 3.28 | 3.30 | 3.26 | 3.21 | 3.07 | 2.85 | 2.63 | 2.67 | 2.58 | 2.53 | 2.55 | 2.68 | 2.44 | 2.60 | 2.80 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $46,309,000K ÷ ($23,362,000K – $10,566,000K)
= 3.62
The analysis of Nike Inc.'s working capital turnover ratio over the period from August 2020 to May 2025 reveals a general trend of improvement, indicating enhanced efficiency in utilizing working capital to generate sales.
Initially, the ratio stood at 2.80 in August 2020, with a slight decline to 2.60 by November 2020 and further to 2.44 in February 2021. This decline may reflect periods of operational challenge or increased working capital relative to sales during this timeframe. Subsequently, the ratio recovered and fluctuated modestly, reaching 2.68 in May 2021, then slightly decreasing to approximately 2.55–2.58 through August 2021 and February 2022.
From mid-2022 onward, a positive trend emerges. The ratio increased steadily from 2.67 in May 2022 to 2.85 in November 2022, and further to 3.07 by February 2023. This upward movement continued, reaching 3.21 in May 2023 and approximately 3.26–3.47 thereafter, with the highest observed at 3.57 in February 2025 and May 2025.
This progressive rise in the working capital turnover ratio suggests Nike has become more efficient in managing its working capital relative to its sales. A higher ratio typically indicates better utilization of working capital assets to support sales activities, possibly driven by improvements in receivables collection, inventory management, or payables management.
Overall, the trend reflects a gradual enhancement in operational efficiency, with the ratio more than doubling from its earlier value in August 2020 to the recent peaks in 2025. This could be indicative of strategic efficiencies, better supply chain management, or improved liquidity management practices over this period.
Peer comparison
May 31, 2025