Nike Inc (NKE)
Current ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 23,362,000 | 25,382,000 | 25,202,000 | 28,213,000 | 26,291,000 |
| Total current liabilities | US$ in thousands | 10,566,000 | 10,593,000 | 9,256,000 | 10,730,000 | 9,674,000 |
| Current ratio | 2.21 | 2.40 | 2.72 | 2.63 | 2.72 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,362,000K ÷ $10,566,000K
= 2.21
The current ratio of Nike Inc. over the period from May 31, 2021, to May 31, 2025, demonstrates a trend of gradual decline. As of May 31, 2021, the current ratio stood at 2.72, indicating that current assets were approximately 2.72 times the current liabilities, reflecting a strong liquidity position. This ratio saw a slight decrease to 2.63 by May 31, 2022, suggesting a modest reduction in the company's liquidity buffer. By May 31, 2023, the current ratio returned to its initial level at 2.72, indicating a recovery or stabilization in the company's short-term liquidity position.
However, in subsequent years, a declining trend is evident. As of May 31, 2024, the current ratio decreased to 2.40, and further diminished to 2.21 by May 31, 2025. This continuous decrease reflects a reduced cushion of current assets over current liabilities, although the ratio remains above 2.0, which is generally regarded as a prudent liquidity level for most industries.
Overall, while Nike maintains a solid liquidity position across this period, the decreasing trend in the current ratio warrants ongoing monitoring. The decline indicates a potential narrowing of the company's short-term financial cushion, which could influence its ability to meet short-term obligations without additional liquidity sources. Nonetheless, the current ratios remain indicative of adequate liquidity, aligning with standard industry benchmarks.
Peer comparison
May 31, 2025