Nike Inc (NKE)
Cash ratio
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,601,000 | 7,979,000 | 8,485,000 | 9,860,000 | 8,960,000 | 7,919,000 | 6,178,000 | 7,441,000 | 6,955,000 | 6,490,000 | 7,226,000 | 8,574,000 | 8,704,000 | 10,751,000 | 10,720,000 | 9,889,000 | 8,516,000 | 8,635,000 | 8,148,000 | 8,348,000 |
| Short-term investments | US$ in thousands | 1,792,000 | 1,782,000 | 1,809,000 | 1,722,000 | 1,613,000 | 2,008,000 | 2,612,000 | 3,234,000 | 3,847,000 | 4,131,000 | 4,650,000 | 4,423,000 | 4,763,000 | 4,352,000 | 2,975,000 | 3,587,000 | 4,012,000 | 3,177,000 | 1,332,000 | 439,000 |
| Total current liabilities | US$ in thousands | 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 | 8,284,000 |
| Cash ratio | 0.93 | 0.87 | 0.97 | 1.09 | 1.17 | 1.10 | 1.04 | 1.15 | 1.13 | 1.04 | 1.09 | 1.21 | 1.53 | 1.71 | 1.66 | 1.39 | 1.41 | 1.33 | 1.10 | 1.06 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,601,000K
+ $1,792,000K)
÷ $11,223,000K
= 0.93
The cash ratio for Nike Inc. exhibits a generally stable trend over the observed period, reflecting the company's ability to meet its short-term obligations using its most liquid assets. Starting from 1.06 as of May 31, 2020, the ratio experienced an upward trajectory, peaking at 1.71 on November 30, 2021. This indicates that during this period, Nike maintained a substantial cushion of cash and cash equivalents relative to its current liabilities, enhancing liquidity safety.
Following this peak, the ratio declined gradually, reaching 1.21 on May 31, 2022, and continued to decrease to approximately 0.87 by November 30, 2024. The continued decline suggests a reduction in the company's cash holdings relative to current liabilities, which could imply increased utilization of cash for strategic initiatives, shareholder returns, or other operational needs. Nonetheless, the cash ratio remained above 0.9 by February 28, 2025, indicating that Nike still retains a solid liquidity buffer, though at a notably diminished level compared to the peak period.
Throughout the timeline, fluctuations may also reflect changes in short-term cash management strategies, shifts in current liabilities, or broader economic conditions impacting liquidity. Overall, the data points to a trend of gradual cash ratio contraction from its historical highs, yet maintaining a stable and adequate liquidity position within the context of short-term financial health.
Peer comparison
Feb 28, 2025