Nike Inc (NKE)
Debt-to-equity 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-equity ratio | 0.55 | 0.63 | 0.63 | 0.64 | 0.64 | 0.61 | 0.58 | 0.56 | 0.58 | 0.64 | 0.63 | 0.66 | 0.74 | 0.79 | 0.88 | 1.02 | 1.17 | 0.38 | 0.37 | 0.38 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,903,000K ÷ $14,430,000K
= 0.55
Nike Inc's debt-to-equity ratio has shown fluctuations over the past several quarters. As of May 31, 2024, the company's debt-to-equity ratio stands at 0.55, indicating that the company has a lower level of debt relative to equity. This suggests that Nike relies more on equity financing compared to debt financing to fund its operations and investments.
The trend in the debt-to-equity ratio over recent quarters shows some variability, with the ratio ranging from 0.37 to 1.17. This variability may be influenced by factors such as changes in the company's capital structure, debt repayment or issuance, and overall financial performance.
Overall, a lower debt-to-equity ratio signifies a lower financial risk for the company, as it indicates that the company has a stronger equity base relative to debt. However, it's important to consider industry norms and the company's specific business context when interpreting this ratio.
Peer comparison
May 31, 2024