Nike Inc (NKE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.24 | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | 0.22 | 0.22 | 0.24 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.30 | 0.13 | 0.13 | 0.13 |
| Debt-to-capital ratio | 0.35 | 0.39 | 0.39 | 0.39 | 0.39 | 0.38 | 0.37 | 0.36 | 0.37 | 0.39 | 0.39 | 0.40 | 0.42 | 0.44 | 0.47 | 0.50 | 0.54 | 0.28 | 0.27 | 0.27 |
| Debt-to-equity ratio | 0.55 | 0.63 | 0.63 | 0.64 | 0.64 | 0.61 | 0.58 | 0.56 | 0.58 | 0.64 | 0.63 | 0.66 | 0.74 | 0.79 | 0.88 | 1.02 | 1.17 | 0.38 | 0.37 | 0.38 |
| 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 |
Nike Inc's solvency ratios have shown fluctuations over the past few quarters. The debt-to-assets ratio has ranged between 0.21 and 0.30, indicating that around 21% to 30% of the company's assets are financed by debt.
Similarly, the debt-to-capital ratio has varied from 0.35 to 0.54, reflecting the proportion of debt in the company's capital structure, which has ranged from 35% to 54%.
The debt-to-equity ratio has shown fluctuations between 0.55 and 1.17, illustrating the extent to which debt is used to finance the company's operations relative to equity.
The financial leverage ratio has ranged from 2.60 to 3.89, demonstrating the company's reliance on debt financing and its ability to cover its financial obligations.
Overall, Nike Inc's solvency ratios suggest a manageable level of debt relative to assets and capital, although there have been some fluctuations in recent quarters that may warrant further monitoring.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to pay interest on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Analyzing the interest coverage trend for Nike Inc over the past few periods, we observe some fluctuations. The interest coverage ratio has ranged from 16.81 to 52.29 in the most recent quarters. In general, Nike Inc has maintained a healthy interest coverage ratio, exceeding 30 in the majority of the periods.
The elevated interest coverage ratios of above 30 suggest that Nike Inc generates sufficient operating income to comfortably cover its interest expenses. This indicates financial stability and liquidity, as the company's earnings are strong enough to service its debt obligations.
However, it is important to note the slight downward trend in the interest coverage ratio in the most recent periods. While still at levels considered healthy, a closer monitoring of this trend may be warranted to ensure that Nike Inc's ability to meet its interest payments remains robust in the future.
Overall, based on the historical data provided, Nike Inc appears to have a strong and consistent ability to cover its interest expenses, reflecting a sound financial position.