Nike Inc (NKE)
Financial leverage ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 36,579,000 | 37,793,000 | 37,959,000 | 37,867,000 | 38,110,000 | 37,356,000 | 37,203,000 | 36,786,000 | 37,531,000 | 38,294,000 | 39,647,000 | 41,088,000 | 40,321,000 | 38,577,000 | 38,917,000 | 37,917,000 | 37,740,000 | 36,185,000 | 34,836,000 | 33,258,000 |
| Total stockholders’ equity | US$ in thousands | 13,213,000 | 14,007,000 | 14,037,000 | 13,944,000 | 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 |
| Financial leverage ratio | 2.77 | 2.70 | 2.70 | 2.72 | 2.64 | 2.63 | 2.63 | 2.63 | 2.68 | 2.64 | 2.60 | 2.60 | 2.64 | 2.60 | 2.61 | 2.64 | 2.96 | 3.03 | 3.27 | 3.61 |
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. exhibits a trend characterized by initial fluctuations followed by relative stability over the analyzed period. At the end of the fiscal year August 31, 2020, the ratio was recorded at 3.61, indicating a higher degree of leverage. Subsequently, the ratio decreased notably over the next few periods, reaching a low of approximately 2.60 in February 28, 2022. This decline suggests a reduction in the company's reliance on debt relative to equity during this interval.
From May 31, 2022 onward, the leverage ratio remained quite stable, oscillating narrowly around a range of approximately 2.60 to 2.70. The highest values within this stable period appeared in May 31, 2025, at 2.77, indicating a slight increase from previous levels, while the lowest remained near the 2.60 mark.
Overall, the trend indicates a significant reduction in leverage from the pandemic-era peak, followed by a period of stability. The moderate levels of the ratio suggest that Nike maintains a balanced approach to leveraging its operations, not excessively relying on debt, which may reflect prudent financial management and an emphasis on maintaining sufficient financial flexibility. The recent slight upward trend in the leverage ratio could be indicative of incremental increases in debt levels but remains within a controlled range.
Peer comparison
May 31, 2025