Nike Inc (NKE)
Current ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 23,362,000 | 24,609,000 | 24,980,000 | 25,040,000 | 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 |
| Total current liabilities | US$ in thousands | 10,566,000 | 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 |
| Current ratio | 2.21 | 2.19 | 2.22 | 2.36 | 2.40 | 2.74 | 2.74 | 2.87 | 2.72 | 2.73 | 2.69 | 2.64 | 2.63 | 3.06 | 3.07 | 3.19 | 2.72 | 2.78 | 2.66 | 2.55 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,362,000K ÷ $10,566,000K
= 2.21
The analysis of Nike Inc.'s current ratio over the specified periods reveals a generally stable liquidity position, with fluctuations observed across the reporting dates. The current ratio, which measures a company's ability to meet short-term obligations with its short-term assets, fluctuated between a low of 2.19 on February 28, 2025, and a high of 3.19 on August 31, 2021.
Between August 31, 2020, and August 31, 2021, the current ratio demonstrated an upward trend, rising from 2.55 to 3.19, indicating improving short-term liquidity and an increased safety margin in meeting current liabilities during this period. This upward movement could reflect effective working capital management or a strategic buildup of liquid assets amid a robust operational environment.
From August 2021 onward, the current ratio displayed minor fluctuations but remained relatively high, staying above 2.2 in most instances, with peaks around 3.07 and 3.06 during late 2021 and early 2022. After reaching these peaks, a gradual decline is noticeable, with ratios decreasing to approximately 2.36 by August 2024. The subsequent periods from late 2024 to early 2025 exhibit further decline, with ratios approaching approximately 2.19.
Overall, the current ratio for Nike Inc. has remained comfortably above the commonly acceptable threshold of 1.0, suggesting a consistent ability to cover short-term liabilities without undue liquidity stress. The observed decline toward the most recent periods could imply increasing utilization of current assets or relative changes in current liabilities; however, it still remains at a level indicating adequate liquidity.
In conclusion, Nike Inc. demonstrated strong liquidity positioning over the analyzed timeframe, with a peak in 2021 and a gradual decrease thereafter. Despite the downward trend in recent periods, the current ratio continues to reflect a favorable liquidity cushion, aligning with standard best practices for financial health and operational stability.
Peer comparison
May 31, 2025