Nike Inc (NKE)
Financial leverage ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 36,579,000 | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 |
| Total stockholders’ equity | US$ in thousands | 13,213,000 | 14,430,000 | 14,004,000 | 15,281,000 | 12,767,000 |
| Financial leverage ratio | 2.77 | 2.64 | 2.68 | 2.64 | 2.96 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,579,000K ÷ $13,213,000K
= 2.77
The financial leverage ratio of Nike Inc. has demonstrated modest fluctuations over the analyzed period from May 31, 2021, to May 31, 2025. As of May 31, 2021, the ratio was 2.96, indicating that the company's total assets were approximately 2.96 times its shareholders’ equity, reflecting a relatively moderate use of debt financing relative to equity. Over the subsequent year, this ratio decreased to 2.64 as of May 31, 2022, suggestive of a reduction in leverage or an increase in equity base, which could be indicative of strategic debt management or equity financing activities.
Subsequently, the ratio experienced a slight increase to 2.68 by May 31, 2023, and remained stable at 2.64 by May 31, 2024. These minor fluctuations suggest that the company's leverage position has remained relatively stable during this period. The ratio further increased to 2.77 as of May 31, 2025, indicating a slight uptick in leverage, possibly due to increased borrowing or a decrease in equity, or a combination of both.
Overall, Nike's financial leverage ratio has remained within a relatively narrow range throughout these years, averaging around 2.68. This stability implies a consistent approach to leveraging assets, balancing debt and equity financing in line with the company's strategic financial management. The slight increase at the end of the period may reflect a cautious approach to leverage expansion or responses to market and operational conditions, but the ratios remain within a moderate leverage profile, suggesting prudent debt management practices.
Peer comparison
May 31, 2025