Nike Inc (NKE)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 2,863,000 | 3,070,000 | 3,446,000 |
| Short-term investments | US$ in thousands | 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 | 319,000 | 432,000 | 198,000 |
| 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 |
| Cash ratio | 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 | 0.38 | 0.42 | 0.45 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,860,000K
+ $1,722,000K)
÷ $10,593,000K
= 1.09
The cash ratio of Nike Inc has shown varying trends over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the data provided:
- In May 2024, the cash ratio was 1.09, indicating that Nike had $1.09 in cash and cash equivalents for every $1 of current liabilities.
- The cash ratio has been fluctuating within a relatively healthy range, with values ranging from 1.04 to 1.71 in the past two years.
- There was a notable peak in February 2022 with a cash ratio of 1.53, demonstrating strong liquidity at that point in time.
- However, in the most recent quarter, the cash ratio dropped to 0.38, which could be a cause for concern as it indicates a significant decline in the ability to cover short-term obligations with available cash.
It is important for investors and stakeholders to closely monitor the cash ratio of Nike Inc to ensure that the company maintains a healthy level of liquidity to meet its short-term obligations effectively. Analyzing the trend of the cash ratio over time can provide insights into the company's financial stability and management of cash resources.
Peer comparison
May 31, 2024