Nike Inc (NKE)
Quick ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,860,000 | 7,441,000 | 8,574,000 | 9,889,000 | 8,348,000 |
| Short-term investments | US$ in thousands | 1,722,000 | 3,234,000 | 4,423,000 | 3,587,000 | 439,000 |
| Receivables | US$ in thousands | 4,427,000 | 4,131,000 | 4,667,000 | 4,463,000 | 2,749,000 |
| Total current liabilities | US$ in thousands | 10,593,000 | 9,256,000 | 10,730,000 | 9,674,000 | 8,284,000 |
| Quick ratio | 1.51 | 1.60 | 1.65 | 1.85 | 1.39 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,860,000K
+ $1,722,000K
+ $4,427,000K)
÷ $10,593,000K
= 1.51
The quick ratio of Nike Inc has exhibited fluctuating trends over the past five years. In 2024, the quick ratio stood at 1.51, showing a decrease from the previous year's ratio of 1.60. This decrease suggests that the company may have a slightly lower ability to meet its short-term obligations with its most liquid assets in 2024 compared to 2023. However, it is important to note that a quick ratio of 1.51 still indicates that Nike Inc has an adequate level of liquid assets to cover its current liabilities.
Looking further back, the quick ratio was relatively stable in 2022 at 1.65 before experiencing a significant increase to 1.85 in 2021. This jump indicates a substantial improvement in the company's ability to cover its short-term obligations with readily available assets in 2021. On the other hand, in 2020, the quick ratio decreased to 1.39, signaling a potential liquidity challenge compared to the following years.
Overall, Nike Inc's quick ratio has varied over the past five years, with some fluctuations in its ability to meet short-term liabilities with its current liquid assets. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's liquidity position and its ability to weather financial uncertainties in the short term.
Peer comparison
May 31, 2024