Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Nike Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
The analysis of liquidity ratios over the indicated periods reveals several notable trends.
- Current Ratio
- The current ratio generally exhibited an upward trend from August 2020 through early 2022, increasing from 2.55 to reach peaks around 3.19 in August 2021 and 3.07 in November 2021. However, starting in mid-2022, a gradual decline is observed, dropping from approximately 2.64 in August 2022 to 2.19 by August 2025. This suggests a strengthening short-term liquidity position initially, followed by a moderate weakening in recent periods.
- Quick Ratio
- The quick ratio follows a similar pattern to the current ratio but at lower absolute levels, indicating a slightly less conservative liquidity position when excluding inventory. It peaked at about 2.18 in August 2021 and then experienced a steady downward trend, reaching 1.24 by August 2025. This indicates a reduction in highly liquid assets relative to current liabilities over time, especially visible after late 2021.
- Cash Ratio
- The cash ratio shows increased values early in the period, peaking near 1.71 in November 2021, demonstrating a strong cash position relative to current liabilities at that time. Following this peak, a decline is evident through the subsequent quarters, dropping below 1.0 from November 2023 onward and reaching 0.79 by August 2025. This decline reflects a decreasing cash reserve relative to short-term liabilities in the more recent periods.
Overall, the company exhibited strong liquidity positions during 2020 and 2021, as reflected in elevated ratios across all measures. From 2022 onwards, liquidity ratios gradually decreased indicating a relative tightening of short-term financial flexibility, potentially signaling changes in working capital management or shifts in asset composition. The current ratio remaining above 2 across all periods indicates that the company generally maintains sufficient current assets to cover liabilities despite the observed reductions. However, the downward trends in quick and cash ratios warrant attention regarding the inventory levels and cash reserves supporting the company’s immediate obligations.
Current Ratio
Nike Inc., current ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 23,898) | 23,362) | 24,609) | 24,980) | 25,040) | 25,382) | 24,753) | 24,631) | 24,250) | 25,202) | 26,035) | 27,447) | 28,877) | 28,213) | 26,962) | 27,177) | 26,390) | 26,291) | 24,700) | 23,607) | 21,937) | |||||||
| Current liabilities | 10,911) | 10,566) | 11,223) | 11,246) | 10,628) | 10,593) | 9,029) | 8,999) | 8,461) | 9,256) | 9,548) | 10,199) | 10,919) | 10,730) | 8,818) | 8,857) | 8,269) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 2.19 | 2.21 | 2.19 | 2.22 | 2.36 | 2.40 | 2.74 | 2.74 | 2.87 | 2.72 | 2.73 | 2.69 | 2.64 | 2.63 | 3.06 | 3.07 | 3.19 | 2.72 | 2.78 | 2.66 | 2.55 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 2.28 | 2.16 | 2.00 | 2.43 | 2.72 | 2.49 | 2.32 | 2.40 | 2.43 | 2.12 | 1.99 | 1.98 | 1.91 | 1.86 | 2.07 | 2.32 | 2.34 | 2.41 | 2.19 | 1.95 | 2.68 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 23,898 ÷ 10,911 = 2.19
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibit a generally upward trend from August 2020 through August 2022, increasing from approximately 21,937 million USD to a peak near 28,877 million USD. After this peak, a gradual decline occurs, with values decreasing to 23,898 million USD by August 2025. This pattern suggests initial growth in liquid or easily convertible assets, followed by a contraction in more recent periods.
- Current Liabilities
- Current liabilities show fluctuations over the observed periods with a minor rise and fall pattern. Starting at 8,619 million USD in August 2020, liabilities peak periodically, reaching around 11,246 million USD by November 2024, the highest point observed. There is no clear sustained upward or downward trend, but the data indicates some increasing pressure on short-term obligations toward the later periods.
- Current Ratio
- The current ratio, representing liquidity, begins at 2.55 in August 2020 and rises to a high of 3.19 by August 2021, indicating strong short-term financial health at that time. Afterward, the ratio declines consistently, reaching around 2.19 by August 2025. This steady decrease in the current ratio over the latter periods suggests a reduction in the cushion available to cover short-term liabilities with current assets, signaling potential emerging liquidity constraints despite ratios remaining above 2.
- Overall Analysis
- The company experienced growth in current assets initially, reflecting possible improvements in working capital or accumulation of cash and receivables. However, the subsequent decline in current assets alongside generally stable or slightly increasing current liabilities has led to a decreasing current ratio. The diminishing trend in liquidity ratios toward the end of the period may warrant monitoring, although the ratio remains above 2, which typically indicates a reasonable short-term financial position.
Quick Ratio
Nike Inc., quick ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | 7,024) | 7,464) | 8,601) | 7,979) | 8,485) | 9,860) | 8,960) | 7,919) | 6,178) | 7,441) | 6,955) | 6,490) | 7,226) | 8,574) | 8,704) | 10,751) | 10,720) | 9,889) | 8,516) | 8,635) | 8,148) | |||||||
| Short-term investments | 1,551) | 1,687) | 1,792) | 1,782) | 1,809) | 1,722) | 1,613) | 2,008) | 2,612) | 3,234) | 3,847) | 4,131) | 4,650) | 4,423) | 4,763) | 4,352) | 2,975) | 3,587) | 4,012) | 3,177) | 1,332) | |||||||
| Accounts receivable, net | 4,962) | 4,717) | 4,491) | 5,302) | 4,764) | 4,427) | 4,526) | 4,782) | 4,749) | 4,131) | 4,513) | 5,437) | 4,960) | 4,667) | 3,827) | 3,746) | 4,341) | 4,463) | 3,669) | 3,713) | 3,813) | |||||||
| Total quick assets | 13,537) | 13,868) | 14,884) | 15,063) | 15,058) | 16,009) | 15,099) | 14,709) | 13,539) | 14,806) | 15,315) | 16,058) | 16,836) | 17,664) | 17,294) | 18,849) | 18,036) | 17,939) | 16,197) | 15,525) | 13,293) | |||||||
| Current liabilities | 10,911) | 10,566) | 11,223) | 11,246) | 10,628) | 10,593) | 9,029) | 8,999) | 8,461) | 9,256) | 9,548) | 10,199) | 10,919) | 10,730) | 8,818) | 8,857) | 8,269) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.24 | 1.31 | 1.33 | 1.34 | 1.42 | 1.51 | 1.67 | 1.63 | 1.60 | 1.60 | 1.60 | 1.57 | 1.54 | 1.65 | 1.96 | 2.13 | 2.18 | 1.85 | 1.82 | 1.75 | 1.54 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.93 | 1.14 | 0.74 | 1.18 | 1.47 | 1.45 | 0.83 | 0.88 | 0.84 | 0.86 | 0.34 | 0.48 | 0.60 | 0.95 | 0.96 | 1.25 | 1.28 | 1.37 | 0.74 | 0.75 | 1.38 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 13,537 ÷ 10,911 = 1.24
2 Click competitor name to see calculations.
The analysis of the recent quarterly financial data reveals several key trends regarding liquidity and short-term financial stability.
- Total Quick Assets
- Total quick assets show a general pattern of initial increase followed by fluctuations and a gradual downward trend in recent quarters. Starting from a value of 13,293 million US dollars at the end of August 2020, these assets increased steadily to peak near 18,849 million US dollars by November 2021. Subsequently, there was a decline with some variability, reaching approximately 13,537 million US dollars by the end of August 2025. This indicates a reduction in the company’s most liquid assets available for covering short-term liabilities over the analyzed period.
- Current Liabilities
- Current liabilities exhibit a fluctuating yet generally increasing trend over the quarters. Beginning at 8,619 million US dollars in August 2020, liabilities experienced ups and downs, with notable rises such as in May 2022 (10,730 million) and continuing to escalate, reaching around 10,911 million US dollars by August 2025. This suggests increasing short-term obligations that the company must manage.
- Quick Ratio
- The quick ratio, which reflects liquidity by comparing quick assets to current liabilities, demonstrates significant variation. Initially, it rose from 1.54 in August 2020 to a high of 2.18 in August 2021, indicating improving liquidity and greater ability to cover short-term debts without relying on inventory sales. After this peak, the ratio declines consistently, dipping to about 1.24 in August 2025. This downward trend points to a decreased margin of safety in meeting short-term liabilities solely through liquid assets.
- Overall Insights
- Combined, these financial indicators suggest that the company experienced strengthening liquidity through late 2021 but has since faced challenges in maintaining the same level of short-term financial strength. The decline in total quick assets alongside increasing current liabilities leads to a continuous fall in the quick ratio, signaling potentially tighter liquidity conditions. Monitoring these metrics moving forward will be important to assess the company’s ongoing capacity to meet obligations promptly.
Cash Ratio
Nike Inc., cash ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | 7,024) | 7,464) | 8,601) | 7,979) | 8,485) | 9,860) | 8,960) | 7,919) | 6,178) | 7,441) | 6,955) | 6,490) | 7,226) | 8,574) | 8,704) | 10,751) | 10,720) | 9,889) | 8,516) | 8,635) | 8,148) | |||||||
| Short-term investments | 1,551) | 1,687) | 1,792) | 1,782) | 1,809) | 1,722) | 1,613) | 2,008) | 2,612) | 3,234) | 3,847) | 4,131) | 4,650) | 4,423) | 4,763) | 4,352) | 2,975) | 3,587) | 4,012) | 3,177) | 1,332) | |||||||
| Total cash assets | 8,575) | 9,151) | 10,393) | 9,761) | 10,294) | 11,582) | 10,573) | 9,927) | 8,790) | 10,675) | 10,802) | 10,621) | 11,876) | 12,997) | 13,467) | 15,103) | 13,695) | 13,476) | 12,528) | 11,812) | 9,480) | |||||||
| Current liabilities | 10,911) | 10,566) | 11,223) | 11,246) | 10,628) | 10,593) | 9,029) | 8,999) | 8,461) | 9,256) | 9,548) | 10,199) | 10,919) | 10,730) | 8,818) | 8,857) | 8,269) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.79 | 0.87 | 0.93 | 0.87 | 0.97 | 1.09 | 1.17 | 1.10 | 1.04 | 1.15 | 1.13 | 1.04 | 1.09 | 1.21 | 1.53 | 1.71 | 1.66 | 1.39 | 1.41 | 1.33 | 1.10 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.84 | 1.08 | 0.66 | 1.10 | 1.37 | 1.38 | 0.75 | 0.80 | 0.76 | 0.77 | 0.27 | 0.41 | 0.54 | 0.90 | 0.89 | 1.19 | 1.22 | 1.30 | 0.66 | 0.69 | 1.30 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,575 ÷ 10,911 = 0.79
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets have experienced fluctuations over the observed periods. Starting from 9,480 million USD, the cash assets increased steadily and peaked around November 2021 at approximately 15,103 million USD. Following this peak, a general declining trend can be observed, with cash assets decreasing to 8,575 million USD by August 2025. There were minor upticks observed in May 2024 and February 2025, yet the overall trajectory remains downward in the latter part of the timeline.
- Current Liabilities
- Current liabilities have also varied throughout the periods analyzed. The figures range from 8,269 million USD to over 11,246 million USD at the highest points, with notable rises seen around mid-2022 and persisting through to the end of the data set in 2025. The liabilities generally increased, particularly after mid-2021, approaching and surpassing the 11,000 million USD mark consistently in multiple quarters towards the end of the series.
- Cash Ratio
- The cash ratio displays a declining trend over the periods. It started above 1.0 and reached its highest points around August 2021 and November 2021 with values above 1.6. After that peak, the ratio decreased gradually, falling below 1 from November 2024 onwards and ending at 0.79 by August 2025. This indicates a decreasing liquidity position relative to current liabilities over time.
- Overall Analysis
- The combined trends suggest that while total cash assets grew initially, they have been diminishing in recent periods. Meanwhile, current liabilities increased steadily, especially after mid-2021. This mismatch is reflected in the declining cash ratio, signaling a reduction in the company's short-term liquidity strength. The decreasing cash ratio under 1.0 in the most recent periods indicates that cash assets are no longer sufficient to cover current liabilities fully, which may warrant closer monitoring of liquidity management and potential funding strategies.