Nike Inc (NKE)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 20,556,000 |
| 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 |
| Current ratio | 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 | 2.48 |
February 28, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $24,609,000K ÷ $11,223,000K
= 2.19
The current ratio of Nike Inc. exhibits fluctuations over the specified period from May 2020 to February 2025. Beginning at a value of 2.48 in May 2020, the ratio demonstrates an upward trend, reaching a peak of 3.19 in August 2021. This indicates a strengthening liquidity position during that phase, as current assets surpassed current liabilities by a substantial margin.
Following this peak, the current ratio gradually declines, settling around 2.63 by May 2022 and maintaining relatively stable levels through November 2022 with a slight increase to 2.69. The ratio remains steady into early 2023, culminating in a figure of 2.74 in November 2023 and February 2024. This suggests that Nike maintained a solid level of liquidity, with current assets comfortably exceeding current obligations.
However, starting from May 2024, a downward trend becomes apparent, with the ratio decreasing to 2.40, then further diminishing to 2.36 in August 2024, and reaching a low of 2.22 by November 2024. The ratio continues to decline slightly through February 2025, reaching 2.19. Despite this decrease, the ratio remains above 2.0, indicating that Nike's short-term assets continue to significantly cover its short-term liabilities.
Overall, the trend illustrates a period of strong liquidity management during the initial years, characterized by peaks exceeding 3.00, followed by a gradual decline, which may reflect changes in working capital management, operational adjustments, or strategic shifts in asset and liability management. Nonetheless, the current ratio consistently remains within a safe operational range, suggesting sustained liquidity robustness in managing short-term financial obligations.
Peer comparison
Feb 28, 2025