Nike Inc (NKE)
Working capital turnover
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 51,426,000 | 51,604,000 | 51,565,000 | 51,492,000 | 51,217,000 | 50,639,000 | 49,120,000 | 47,162,000 | 46,696,000 | 46,785,000 | 46,271,000 | 46,157,000 | 44,591,000 | 38,480,000 | 38,227,000 | 37,310,000 | 37,282,000 | 41,210,000 | 40,717,000 | 49,139,000 |
| Total current assets | US$ in thousands | 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 | 20,556,000 | 15,744,000 | 16,369,000 | 16,228,000 |
| Total current liabilities | US$ in thousands | 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 | 8,284,000 | 8,280,000 | 8,264,000 | 8,070,000 |
| Working capital turnover | 3.48 | 3.28 | 3.30 | 3.26 | 3.21 | 3.07 | 2.85 | 2.63 | 2.67 | 2.58 | 2.53 | 2.55 | 2.68 | 2.43 | 2.59 | 2.80 | 3.04 | 5.52 | 5.02 | 6.02 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $51,426,000K ÷ ($25,382,000K – $10,593,000K)
= 3.48
The working capital turnover ratio of Nike Inc has exhibited fluctuations over the past several quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In general, a higher working capital turnover ratio signifies that a company is effectively managing its working capital to support sales growth. Nike's working capital turnover has shown a general increasing trend in recent periods, indicating improved efficiency in converting working capital into sales.
However, there are fluctuations in the ratio, indicating variability in the company's working capital management efficiency. The ratio peaked at 6.02 in November 2019 and has since fluctuated within a range, showing some stability around an average of approximately 3.0 in recent periods.
It is important for Nike to continue monitoring and managing its working capital effectively to ensure sustainable growth and efficiency in its operations. Further analysis of the components of working capital, such as inventory turnover and accounts receivable turnover, may provide additional insights into the company's overall working capital management performance.
Peer comparison
May 31, 2024