Nike Inc (NKE)

Financial leverage ratio

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 May 31, 2020
Total assets US$ in thousands 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 31,342,000
Total stockholders’ equity US$ in thousands 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 8,055,000
Financial leverage ratio 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 3.89

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,793,000K ÷ $14,007,000K
= 2.70

The financial leverage ratio of Nike Inc. has demonstrated a consistent downward trend from May 31, 2020, through early 2022. Specifically, the ratio declined from 3.89 in May 2020 to approximately 2.60 by November 2022, indicating a reduction in the company's reliance on debt capital relative to its equity during this period. This decrease suggests a strategic shift toward lowering financial risk and improving financial stability, possibly through debt reduction or equity financing activities.

Starting from late 2022 onwards, the leverage ratio stabilized around the 2.60 to 2.70 range. Notably, from August 2023 to February 2025, there has been a slight but consistent increase, with the ratio moving from approximately 2.63 to 2.70. This moderate upward movement indicates a potential, albeit limited, increase in financial leverage, which could be associated with new borrowing activities or capital structure adjustments.

Overall, the trend reflects a phase of deleverage from 2020 to 2022, followed by a period of stability with a slight uptick in leverage levels in subsequent years. The ratios remain within a relatively narrow band, suggesting that Nike Inc. maintains a balanced approach to leverage, managing debt levels to mitigate financial risk while supporting growth initiatives.


Peer comparison

Feb 28, 2025

Company name
Symbol
Financial leverage ratio
Nike Inc
NKE
2.70
Crocs Inc
CROX
2.62
Deckers Outdoor Corporation
DECK
1.42

See also:

Nike Inc Financial Leverage (Quarterly Data)