Nike Inc (NKE)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,464,000 | 9,860,000 | 7,441,000 | 8,574,000 | 9,889,000 |
| Short-term investments | US$ in thousands | 1,687,000 | 1,722,000 | 3,234,000 | 4,423,000 | 3,587,000 |
| Total current liabilities | US$ in thousands | 10,566,000 | 10,593,000 | 9,256,000 | 10,730,000 | 9,674,000 |
| Cash ratio | 0.87 | 1.09 | 1.15 | 1.21 | 1.39 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,464,000K
+ $1,687,000K)
÷ $10,566,000K
= 0.87
The cash ratio of Nike Inc. demonstrates a declining trend over the analyzed period from May 31, 2021, to May 31, 2025. Specifically, the ratio decreased from 1.39 in 2021 to 1.21 in 2022, indicating a slight reduction in the company's ability to cover its current liabilities using only its cash and cash equivalents. The ratio continued to decline in subsequent years, reaching 1.15 in 2023, 1.09 in 2024, and further decreasing to 0.87 in 2025.
This downward trend suggests that Nike's liquidity position, in terms of raw cash relative to current liabilities, is gradually diminishing over time. While the ratio remained above 1.0 throughout the period, indicating that cash and cash equivalents exceeded short-term obligations, the decreasing values imply a reduction in this buffer. The decline may reflect shifts in the company's cash management strategies, increased reliance on non-cash current assets, or variations in the timing of liquidity needs.
Overall, the consistent decrease points to a modest erosion of immediate liquidity strength, which could warrant attention from financial analysts to assess the company's capacity to meet short-term liabilities solely with its most liquid assets.
Peer comparison
May 31, 2025