Nike Inc (NKE)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 26,220,000 | 26,602,000 | 26,249,000 |
| 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 |
| Financial leverage ratio | 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 | 2.90 | 2.84 | 2.85 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,110,000K ÷ $14,430,000K
= 2.64
Nike Inc's financial leverage ratio has shown some fluctuations over the past few quarters, ranging from a low of 2.60 to a high of 3.89. The ratio indicates that the company relies more on debt financing than equity, with an average ratio of approximately 2.75. This suggests that for every dollar of equity, Nike has approximately $2.75 in debt.
The fluctuations in the financial leverage ratio may indicate changes in the company's capital structure and its ability to manage debt levels effectively. A higher ratio, such as the peak of 3.89 in August 2020, may signal potential higher financial risk due to increased debt levels. Conversely, a lower ratio, like the low of 2.60 in November 2023, may indicate a more conservative approach to financing, with a higher reliance on equity.
Overall, investors and stakeholders should closely monitor Nike's financial leverage ratio to assess the company's risk profile and financial health, as well as its ability to meet debt obligations and generate returns for shareholders.
Peer comparison
May 31, 2024