Nike Inc (NKE)
Debt-to-assets ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,903,000 | 8,927,000 | 8,920,000 | 9,413,000 | 9,406,000 |
| Total assets | US$ in thousands | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 | 31,342,000 |
| Debt-to-assets ratio | 0.21 | 0.24 | 0.22 | 0.25 | 0.30 |
May 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,903,000K ÷ $38,110,000K
= 0.21
The debt-to-assets ratio of Nike Inc has shown a decreasing trend over the past five years, indicating a favorable financial position in terms of leverage. As of May 31, 2024, the ratio stands at 0.21, reflecting that only 21% of the company's assets are financed by debt. This signifies a strong ability to cover its obligations with its existing assets. The downward trend from 2020 to 2024 suggests that Nike has been effectively managing its debt levels in relation to its total assets, potentially reducing financial risk and enhancing overall stability. Overall, the decreasing debt-to-assets ratio of Nike Inc reflects a prudent approach to capital structure management.
Peer comparison
May 31, 2024