Nike Inc (NKE)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 14,430,000 | 14,004,000 | 15,281,000 | 12,767,000 | 8,055,000 |
| Debt-to-equity ratio | 0.55 | 0.64 | 0.58 | 0.74 | 1.17 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,903,000K ÷ $14,430,000K
= 0.55
The debt-to-equity ratio of Nike Inc has exhibited a decreasing trend over the past five years, indicating an improvement in the company's leverage position. The ratio has declined from 1.17 in May 31, 2020, to 0.55 in May 31, 2024. This downward trend suggests that Nike has been reducing its reliance on debt to finance its operations and has been increasing its equity base. A lower debt-to-equity ratio generally signifies lower financial risk and greater financial stability for the company. Nike's decreasing ratio implies that it has been effectively managing its debt levels and strengthening its equity position over the years. This trend reflects positively on Nike's overall financial health and sustainability.
Peer comparison
May 31, 2024