Nike Inc (NKE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,465,000 | 5,583,000 | 6,062,000 | 5,824,000 | 5,915,000 | 6,162,000 | 6,379,000 | 6,246,000 | 6,675,000 | 7,120,000 | 7,169,000 | 7,295,000 | 6,937,000 | 4,186,000 | 3,698,000 | 3,338,000 | 3,115,000 | 5,180,000 | 5,238,000 | 4,981,000 |
| Interest expense (ttm) | US$ in thousands | 108,000 | 133,000 | 146,000 | 140,000 | 119,000 | 134,000 | 122,000 | 161,000 | 205,000 | 228,000 | 239,000 | 254,000 | 262,000 | 249,000 | 197,000 | 139,000 | 89,000 | 51,000 | 51,000 | 53,000 |
| Interest coverage | 50.60 | 41.98 | 41.52 | 41.60 | 49.71 | 45.99 | 52.29 | 38.80 | 32.56 | 31.23 | 30.00 | 28.72 | 26.48 | 16.81 | 18.77 | 24.01 | 35.00 | 101.57 | 102.71 | 93.98 |
May 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,465,000K ÷ $108,000K
= 50.60
Nike Inc's interest coverage ratio has shown fluctuation over the past few quarters, ranging from a low of 16.81 to a high of 52.29. The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A high interest coverage ratio, such as those seen in some quarters for Nike, indicates that the company is comfortably able to meet its interest obligations. This is a positive sign for investors and lenders, as it suggests the company has sufficient earnings to cover its interest expenses.
It is noteworthy that Nike's interest coverage ratio has generally been above 30 in recent quarters, indicating a strong ability to meet its interest payments. However, the ratio experienced a decline in the most recent quarter compared to the previous quarter, which is worth monitoring for any potential impact on the company's financial health. Overall, Nike Inc's interest coverage ratio demonstrates a healthy financial position with a consistent ability to meet its interest obligations.
Peer comparison
May 31, 2024