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: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
An analysis of the liquidity ratios from May 31, 2021, through May 31, 2026, reveals a consistent downward trend across all primary metrics. While the overall liquidity position remains above critical thresholds, there is a progressive contraction in the company's ability to cover short-term obligations with its most liquid assets.
- Current Ratio
- The current ratio remained relatively stable between 2021 and 2023, fluctuating slightly around 2.72. However, a steady decline began after May 31, 2023, with the ratio falling to 2.40 in 2024 and further decreasing to a projected 1.96 by May 31, 2026. This trajectory indicates a reduction in the overall cushion of current assets relative to current liabilities.
- Quick Ratio
- A continuous downward pattern is evident in the quick ratio, which decreased from 1.85 in 2021 to 1.19 in 2026. This persistent decline suggests a diminishing capacity to settle short-term debts without relying on the liquidation of inventory, reflecting a tightening of highly liquid resources over the observed period.
- Cash Ratio
- The most pronounced decline is observed in the cash ratio, which dropped from 1.39 in 2021 to 0.72 by 2026. A critical inflection point occurred after May 31, 2024, when the ratio fell below 1.0. This indicates that cash and cash equivalents are no longer sufficient to cover the total amount of current liabilities independently, marking a shift from a cash-surplus position to a reliance on other current assets or operational cash flow.
AI Ask an analyst for more
Current Ratio
Nike Inc., current ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 24,603) | 23,362) | 25,382) | 25,202) | 28,213) | 26,291) | |
| Current liabilities | 12,547) | 10,566) | 10,593) | 9,256) | 10,730) | 9,674) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.96 | 2.21 | 2.40 | 2.72 | 2.63 | 2.72 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| lululemon athletica inc. | 2.26 | 2.16 | 2.49 | 2.12 | 1.86 | 2.41 | |
| Current Ratio, Sector | |||||||
| Consumer Durables & Apparel | — | 2.20 | 2.41 | 2.64 | 2.54 | 2.69 | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | — | 1.18 | 1.22 | 1.20 | 1.15 | 1.25 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,603 ÷ 12,547 = 1.96
2 Click competitor name to see calculations.
The analysis of short-term liquidity reveals a progressive contraction in the margin of safety available to cover current obligations over the observed six-year period. While the liquidity position remained strong through 2023, a sustained downward trend in the current ratio is evident in the subsequent three fiscal years.
- Current Assets Trend
- Current assets reached a peak of US$ 28,213 million in May 2022, followed by a general decline. Despite a slight recovery to US$ 24,603 million in May 2026, the asset base remains lower than the levels recorded in 2021 and 2022, indicating a net reduction in the available short-term resource pool.
- Current Liabilities Trend
- Current liabilities have exhibited an overall upward trajectory, increasing from US$ 9,674 million in 2021 to a period high of US$ 12,547 million in 2026. The growth in short-term obligations, particularly the significant increase between 2025 and 2026, has placed additional pressure on the overall liquidity profile.
- Current Ratio Analysis
- The current ratio transitioned from a peak of 2.72 in May 2021 and 2023 to 1.96 by May 2026. This decline is the result of the simultaneous reduction in current assets and the increase in current liabilities. Although the ratio remains above 1.0, indicating that assets still exceed liabilities, the consistent year-over-year decrease since 2023 signifies a weakening of the immediate liquidity cushion.
AI Ask an analyst for more
Quick Ratio
Nike Inc., quick ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 7,563) | 7,464) | 9,860) | 7,441) | 8,574) | 9,889) | |
| Short-term investments | 1,464) | 1,687) | 1,722) | 3,234) | 4,423) | 3,587) | |
| Accounts receivable, net | 5,931) | 4,717) | 4,427) | 4,131) | 4,667) | 4,463) | |
| Total quick assets | 14,958) | 13,868) | 16,009) | 14,806) | 17,664) | 17,939) | |
| Current liabilities | 12,547) | 10,566) | 10,593) | 9,256) | 10,730) | 9,674) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.19 | 1.31 | 1.51 | 1.60 | 1.65 | 1.85 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| lululemon athletica inc. | 1.06 | 1.14 | 1.45 | 0.86 | 0.95 | 1.37 | |
| Quick Ratio, Sector | |||||||
| Consumer Durables & Apparel | — | 1.29 | 1.50 | 1.50 | 1.57 | 1.81 | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.87 | 0.91 | 0.86 | 0.81 | 0.93 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,958 ÷ 12,547 = 1.19
2 Click competitor name to see calculations.
The analysis of liquidity reveals a consistent downward trend in the quick ratio over the six-year period ending May 31, 2026. While the ratio remains above 1.0, indicating that short-term obligations can still be met using liquid assets without relying on inventory sales, the margin of safety has diminished steadily since 2021.
- Quick Ratio Trend
- The quick ratio decreased from 1.85 in 2021 to 1.19 in 2026. This represents a continuous decline in the company's immediate liquidity position, suggesting a tightening of the available liquid buffer relative to short-term debts.
- Quick Asset Performance
- Total quick assets experienced an overall decline, falling from US$ 17,939 million in 2021 to US$ 14,958 million in 2026. The most significant contraction occurred between 2022 and 2023, with a subsequent low point reached in 2025 at US$ 13,868 million before a modest recovery in the final year.
- Current Liabilities Analysis
- Current liabilities showed an upward trajectory, rising from US$ 9,674 million in 2021 to US$ 12,547 million in 2026. The most pronounced increase occurred between 2025 and 2026, where liabilities grew by nearly US$ 2 billion, directly contributing to the compression of the quick ratio during that period.
AI Ask an analyst for more
Cash Ratio
Nike Inc., cash ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and equivalents | 7,563) | 7,464) | 9,860) | 7,441) | 8,574) | 9,889) | |
| Short-term investments | 1,464) | 1,687) | 1,722) | 3,234) | 4,423) | 3,587) | |
| Total cash assets | 9,027) | 9,151) | 11,582) | 10,675) | 12,997) | 13,476) | |
| Current liabilities | 12,547) | 10,566) | 10,593) | 9,256) | 10,730) | 9,674) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.72 | 0.87 | 1.09 | 1.15 | 1.21 | 1.39 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| lululemon athletica inc. | 0.96 | 1.08 | 1.38 | 0.77 | 0.90 | 1.30 | |
| Cash Ratio, Sector | |||||||
| Consumer Durables & Apparel | — | 0.90 | 1.13 | 1.10 | 1.17 | 1.39 | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.50 | 0.52 | 0.48 | 0.47 | 0.64 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 9,027 ÷ 12,547 = 0.72
2 Click competitor name to see calculations.
The analysis of the liquidity position from 2021 to 2026 reveals a consistent decline in the immediate ability to meet short-term obligations using cash assets. This trend is characterized by a simultaneous reduction in cash holdings and a general increase in current liabilities, resulting in a sustained contraction of the cash ratio.
- Total Cash Assets Trend
- Cash assets exhibited a general downward trajectory, decreasing from 13,476 million US$ in 2021 to 9,027 million US$ by 2026. Although a moderate recovery was observed in 2024, the overarching trend indicates a substantial reduction in liquid capital over the analyzed period.
- Current Liabilities Trend
- Current liabilities showed overall growth, rising from 9,674 million US$ in 2021 to 12,547 million US$ in 2026. While the figures fluctuated between 2022 and 2025, a significant increase was recorded in the final year, contributing to the increased pressure on short-term liquidity.
- Cash Ratio Deterioration
- The cash ratio declined linearly from 1.39 in 2021 to 0.72 in 2026. A critical threshold was crossed between 2024 and 2025, as the ratio fell from 1.09 to 0.87. This shift indicates a transition from a position of surplus—where cash assets were sufficient to cover all current liabilities—to a position where cash assets cover only a fraction of short-term obligations.
AI Ask an analyst for more