Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Nike Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Nike Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Nike Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Nike Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Nike Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Nike Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Nike Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Nike Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Nike Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Nike Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Inventory Turnover
Nike Inc., inventory turnover 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) | |||||||
| Cost of sales | 28,925) | 25,231) | 24,576) | 21,162) | 21,643) | 20,441) | |
| Inventories | 8,454) | 8,420) | 6,854) | 7,367) | 5,622) | 5,261) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 3.42 | 3.00 | 3.59 | 2.87 | 3.85 | 3.89 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Deckers Outdoor Corp. | 3.38 | 3.04 | 4.21 | 3.30 | 3.52 | 3.24 | |
| lululemon athletica inc. | 2.50 | 2.74 | 2.99 | 3.39 | 3.64 | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Durables & Apparel | 3.29 | 2.97 | 3.56 | 2.92 | 3.82 | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | 7.05 | 6.73 | 7.05 | 7.53 | 7.82 | — | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 28,925 ÷ 8,454 = 3.42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Nike Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Receivables Turnover
Nike Inc., receivables turnover 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) | |||||||
| Revenues | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | 36,397) | |
| Accounts receivable, net | 4,131) | 4,667) | 4,463) | 2,749) | 4,272) | 3,498) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 12.40 | 10.01 | 9.98 | 13.61 | 9.16 | 10.41 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Deckers Outdoor Corp. | 12.03 | 10.41 | 11.80 | 11.49 | 11.31 | 13.24 | |
| lululemon athletica inc. | 61.02 | 81.25 | 70.54 | 98.94 | 91.89 | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Durables & Apparel | 13.79 | 11.12 | 10.86 | 14.63 | 9.90 | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | 17.96 | 17.99 | 21.11 | 21.76 | 21.69 | — | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 51,217 ÷ 4,131 = 12.40
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Nike Inc. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Nike Inc., payables turnover 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) | |||||||
| Cost of sales | 28,925) | 25,231) | 24,576) | 21,162) | 21,643) | 20,441) | |
| Accounts payable | 2,862) | 3,358) | 2,836) | 2,248) | 2,612) | 2,279) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 10.11 | 7.51 | 8.67 | 9.41 | 8.29 | 8.97 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Deckers Outdoor Corp. | 6.78 | 4.71 | 5.06 | 6.96 | 7.84 | 10.34 | |
| lululemon athletica inc. | 20.95 | 9.14 | 11.25 | 21.95 | 15.41 | — | |
| Payables Turnover, Sector | |||||||
| Consumer Durables & Apparel | 10.41 | 7.40 | 8.55 | 9.67 | 8.51 | — | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | 5.23 | 4.84 | 4.67 | 4.77 | 5.59 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 28,925 ÷ 2,862 = 10.11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Nike Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Nike Inc., working capital turnover 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) | |
| Less: Current liabilities | 9,256) | 10,730) | 9,674) | 8,284) | 7,866) | 6,040) | |
| Working capital | 15,946) | 17,483) | 16,617) | 12,272) | 8,659) | 9,094) | |
| Revenues | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | 36,397) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 3.21 | 2.67 | 2.68 | 3.05 | 4.52 | 4.00 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Deckers Outdoor Corp. | 2.57 | 2.60 | 2.15 | 2.39 | 2.39 | 2.64 | |
| lululemon athletica inc. | 4.86 | 5.17 | 3.55 | 3.35 | 3.54 | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Durables & Apparel | 3.31 | 2.82 | 2.70 | 3.03 | 4.26 | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | 16.06 | 19.31 | 10.96 | 13.27 | 32.45 | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 51,217 ÷ 15,946 = 3.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Nike Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Inventory Processing Period
Nike Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 3.42 | 3.00 | 3.59 | 2.87 | 3.85 | 3.89 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 107 | 122 | 102 | 127 | 95 | 94 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Deckers Outdoor Corp. | 108 | 120 | 87 | 111 | 104 | 113 | |
| lululemon athletica inc. | 146 | 133 | 122 | 108 | 100 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Durables & Apparel | 111 | 123 | 103 | 125 | 96 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | 52 | 54 | 52 | 48 | 47 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.42 = 107
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Nike Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Average Receivable Collection Period
Nike Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 12.40 | 10.01 | 9.98 | 13.61 | 9.16 | 10.41 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 29 | 36 | 37 | 27 | 40 | 35 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Deckers Outdoor Corp. | 30 | 35 | 31 | 32 | 32 | 28 | |
| lululemon athletica inc. | 6 | 4 | 5 | 4 | 4 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Durables & Apparel | 26 | 33 | 34 | 25 | 37 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 17 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.40 = 29
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Nike Inc. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Nike Inc., operating cycle calculation, comparison to benchmarks
No. days
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 107 | 122 | 102 | 127 | 95 | 94 | |
| Average receivable collection period | 29 | 36 | 37 | 27 | 40 | 35 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 136 | 158 | 139 | 154 | 135 | 129 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Deckers Outdoor Corp. | 138 | 155 | 118 | 143 | 136 | 141 | |
| lululemon athletica inc. | 152 | 137 | 127 | 112 | 104 | — | |
| Operating Cycle, Sector | |||||||
| Consumer Durables & Apparel | 137 | 156 | 137 | 150 | 133 | — | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | 72 | 74 | 69 | 65 | 64 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 107 + 29 = 136
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Nike Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Payables Payment Period
Nike Inc., average payables payment period 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 | |||||||
| Payables turnover | 10.11 | 7.51 | 8.67 | 9.41 | 8.29 | 8.97 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 36 | 49 | 42 | 39 | 44 | 41 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Deckers Outdoor Corp. | 54 | 77 | 72 | 52 | 47 | 35 | |
| lululemon athletica inc. | 17 | 40 | 32 | 17 | 24 | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Durables & Apparel | 35 | 49 | 43 | 38 | 43 | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | 70 | 75 | 78 | 76 | 65 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.11 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Nike Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
Nike Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 107 | 122 | 102 | 127 | 95 | 94 | |
| Average receivable collection period | 29 | 36 | 37 | 27 | 40 | 35 | |
| Average payables payment period | 36 | 49 | 42 | 39 | 44 | 41 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 100 | 109 | 97 | 115 | 91 | 88 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Deckers Outdoor Corp. | 84 | 78 | 46 | 91 | 89 | 106 | |
| lululemon athletica inc. | 135 | 97 | 95 | 95 | 80 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Durables & Apparel | 102 | 107 | 94 | 112 | 90 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | 2 | -1 | -9 | -11 | -1 | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 107 + 29 – 36 = 100
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Nike Inc. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |