Nike Inc (NKE)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,464,000 | 8,601,000 | 7,979,000 | 8,485,000 | 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 |
| Short-term investments | US$ in thousands | 1,687,000 | 1,792,000 | 1,782,000 | 1,809,000 | 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 |
| Receivables | US$ in thousands | 4,717,000 | 4,491,000 | 5,302,000 | 4,764,000 | 4,427,000 | 4,526,000 | 4,782,000 | 4,749,000 | 4,131,000 | 4,513,000 | 5,437,000 | 4,960,000 | 4,667,000 | 3,827,000 | 3,746,000 | 4,341,000 | 4,463,000 | 3,669,000 | 3,713,000 | 3,813,000 |
| 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 |
| Quick ratio | 1.31 | 1.33 | 1.34 | 1.42 | 1.51 | 1.67 | 1.63 | 1.60 | 1.60 | 1.60 | 1.57 | 1.54 | 1.65 | 1.96 | 2.13 | 2.18 | 1.85 | 1.82 | 1.75 | 1.54 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,464,000K
+ $1,687,000K
+ $4,717,000K)
÷ $10,566,000K
= 1.31
The quick ratio of Nike Inc. demonstrates a generally stable liquidity position over the analyzed period from August 31, 2020, to May 31, 2025, with fluctuations observed at various intervals.
Starting at 1.54 in August 2020, the ratio increased steadily through late 2020 and into 2021, reaching a peak of approximately 2.18 in August 2021. This upward trend suggests improved liquidity and a stronger immediate capability to meet short-term obligations without relying on inventory sales during this period. The ratio remained relatively high and stable through late 2021, with minor fluctuations, maintaining above 1.9 in early 2022.
Subsequently, from May 2022 onward, the ratio exhibited a gradual decline, reflecting a slight decrease in Nike's short-term liquidity buffer. By August 2022, the ratio returned to approximately 1.54, matching early 2020 levels, and maintained modest variations around 1.57 to 1.6 through the end of 2023.
From late 2023 into 2025, a continued declining trend is evident, with the ratio decreasing to approximately 1.34 by November 2024 and further to around 1.31 in May 2025. This declining pattern indicates a gradual reduction in Nike’s short-term liquidity cushion, suggesting either a strategic deployment of assets, increased current liabilities, or a combination of both.
Overall, the trend reflects a period of robust liquidity in 2020 and 2021, followed by a slow but steady decline, yet remaining above 1.3 throughout the period, which generally indicates that Nike maintains adequate short-term liquidity to cover its current liabilities, although the margin of safety has diminished relative to earlier years.
Peer comparison
May 31, 2025