Nike Inc (NKE)
Debt-to-capital ratio
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,903,000 | 8,930,000 | 8,930,000 | 8,929,000 | 8,927,000 | 8,925,000 | 8,924,000 | 8,922,000 | 8,920,000 | 9,418,000 | 9,417,000 | 9,415,000 | 9,413,000 | 9,412,000 | 9,410,000 | 9,408,000 | 9,406,000 | 3,463,000 | 3,462,000 | 3,463,000 |
| Total stockholders’ equity | US$ in thousands | 14,430,000 | 14,226,000 | 14,146,000 | 13,971,000 | 14,004,000 | 14,531,000 | 15,272,000 | 15,822,000 | 15,281,000 | 14,809,000 | 14,924,000 | 14,343,000 | 12,767,000 | 11,931,000 | 10,640,000 | 9,224,000 | 8,055,000 | 9,045,000 | 9,351,000 | 9,200,000 |
| Debt-to-capital ratio | 0.35 | 0.39 | 0.39 | 0.39 | 0.39 | 0.38 | 0.37 | 0.36 | 0.37 | 0.39 | 0.39 | 0.40 | 0.42 | 0.44 | 0.47 | 0.50 | 0.54 | 0.28 | 0.27 | 0.27 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,903,000K ÷ ($7,903,000K + $14,430,000K)
= 0.35
The debt-to-capital ratio of Nike Inc has shown some fluctuation over the past few quarters. As of May 31, 2024, the ratio stands at 0.35, indicating that 35% of the company's capital structure is funded by debt. This ratio has decreased from the previous quarter but remains relatively stable compared to the ratios observed in the previous year.
Looking at the trend over the past few quarters, we see that the ratio peaked at 0.54 in August 31, 2020, and has since shown a decreasing trend, with some minor fluctuations. This indicates that Nike has been actively managing its leverage and debt levels over time.
A lower debt-to-capital ratio suggests a lower financial risk for the company, as it indicates a smaller reliance on debt financing. On the other hand, a higher ratio would signal higher leverage and potentially higher financial risk. Nike's current ratio of 0.35 falls within a moderate range, reflecting a balanced approach to capital structure management.
Overall, the debt-to-capital ratio of Nike Inc demonstrates a prudent approach to maintaining a healthy balance between debt and equity in its capital structure for sustainable growth and financial stability.
Peer comparison
May 31, 2024