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