Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Nike Inc., liquidity ratios
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Nike Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Nike Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Nike Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Nike Inc., current ratio calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 25,202) | 28,213) | 26,291) | 20,556) | 16,525) | 15,134) | |
| Current liabilities | 9,256) | 10,730) | 9,674) | 8,284) | 7,866) | 6,040) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.72 | 2.63 | 2.72 | 2.48 | 2.10 | 2.51 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Deckers Outdoor Corp. | 3.84 | 3.23 | 3.52 | 3.97 | 4.37 | 4.81 | |
| lululemon athletica inc. | 2.12 | 1.86 | 2.41 | 2.91 | 2.86 | — | |
| Current Ratio, Sector | |||||||
| Consumer Durables & Apparel | 2.69 | 2.57 | 2.73 | 2.56 | 2.21 | — | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | 1.18 | 1.14 | 1.24 | 1.18 | 1.08 | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 25,202 ÷ 9,256 = 2.72
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Nike Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Quick Ratio
Nike Inc., quick ratio calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 7,441) | 8,574) | 9,889) | 8,348) | 4,466) | 4,249) | |
| Short-term investments | 3,234) | 4,423) | 3,587) | 439) | 197) | 996) | |
| Accounts receivable, net | 4,131) | 4,667) | 4,463) | 2,749) | 4,272) | 3,498) | |
| Total quick assets | 14,806) | 17,664) | 17,939) | 11,536) | 8,935) | 8,743) | |
| Current liabilities | 9,256) | 10,730) | 9,674) | 8,284) | 7,866) | 6,040) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.60 | 1.65 | 1.85 | 1.39 | 1.14 | 1.45 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Deckers Outdoor Corp. | 2.58 | 2.12 | 2.79 | 2.77 | 3.07 | 3.03 | |
| lululemon athletica inc. | 0.86 | 0.95 | 1.37 | 1.83 | 1.83 | — | |
| Quick Ratio, Sector | |||||||
| Consumer Durables & Apparel | 1.55 | 1.59 | 1.86 | 1.47 | 1.23 | — | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | 0.84 | 0.81 | 0.93 | 0.89 | 0.77 | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,806 ÷ 9,256 = 1.60
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Nike Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Nike Inc., cash ratio calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 7,441) | 8,574) | 9,889) | 8,348) | 4,466) | 4,249) | |
| Short-term investments | 3,234) | 4,423) | 3,587) | 439) | 197) | 996) | |
| Total cash assets | 10,675) | 12,997) | 13,476) | 8,787) | 4,663) | 5,245) | |
| Current liabilities | 9,256) | 10,730) | 9,674) | 8,284) | 7,866) | 6,040) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.15 | 1.21 | 1.39 | 1.06 | 0.59 | 0.87 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Deckers Outdoor Corp. | 1.97 | 1.56 | 2.33 | 2.16 | 2.35 | 2.27 | |
| lululemon athletica inc. | 0.77 | 0.90 | 1.30 | 1.76 | 1.76 | — | |
| Cash Ratio, Sector | |||||||
| Consumer Durables & Apparel | 1.14 | 1.19 | 1.43 | 1.14 | 0.71 | — | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | 0.57 | 0.55 | 0.71 | 0.70 | 0.56 | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 10,675 ÷ 9,256 = 1.15
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Nike Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |