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: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 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).
A comprehensive analysis of the liquidity position reveals a sustained downward trend across all primary liquidity metrics from August 2021 through August 2026. While the company maintains a positive liquidity cushion, there is a clear reduction in the margin of safety for meeting short-term obligations.
- Current Ratio Analysis
- The current ratio experienced a gradual decline from a peak of 3.19 in August 2021 to 2.07 by August 2026. A notable contraction occurred between February 2022 and May 2022, where the ratio shifted from 3.06 to 2.63. Although the ratio remained relatively stable between 2.7 and 2.8 throughout most of 2023, a secondary decline began in mid-2024, eventually settling near the 2.0 threshold. This indicates a reduction in the overall ability to cover current liabilities with current assets.
- Quick Ratio Analysis
- The quick ratio demonstrates a more aggressive decline than the current ratio, falling from 2.18 in August 2021 to 1.19 in August 2026. A significant erosion of liquidity is evident in 2022, with the ratio dropping to 1.54 by August 2022. The metric consistently remained above 1.5 until May 2024, after which it entered a lower range between 1.19 and 1.34. This trend suggests a decreasing capacity to satisfy immediate liabilities without relying on the sale of inventory.
- Cash Ratio Analysis
- The cash ratio shows the most substantial compression, decreasing from 1.66 in August 2021 to 0.73 in August 2026. The ratio fell below the 1.0 parity mark in August 2024, signaling that cash and cash equivalents were no longer sufficient to cover all current liabilities independently. From November 2024 onward, the ratio fluctuated within a narrow band between 0.72 and 0.93, reflecting a contraction in liquid cash reserves relative to short-term debt.
The convergence of these ratios toward lower levels implies a systemic tightening of liquidity. The widening variance between the current ratio and the quick ratio suggests that inventory represents an increasing proportion of the current assets utilized to support short-term obligations.
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Current Ratio
Nike Inc., current ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 23,673) | 24,603) | 23,184) | 24,015) | 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) | |||||||
| Current liabilities | 11,409) | 12,547) | 10,838) | 11,640) | 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) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 2.07 | 1.96 | 2.14 | 2.06 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 2.23 | 2.26 | 2.13 | 2.27 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 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).
1 Q1 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 23,673 ÷ 11,409 = 2.07
2 Click competitor name to see calculations.
The analysis of liquidity trends reveals a steady contraction in the company's short-term financial cushion over the observed period. Although the liquidity position remains robust in absolute terms, there is a clear and consistent decline in the capacity to cover current liabilities with current assets.
- Current Asset Trends
- Current assets exhibited an initial increase, peaking at 28,877 million US$ in August 2022. Following this peak, a gradual downward trajectory is evident, with assets declining to 23,673 million US$ by August 2026. This decrease indicates a reduction in the total volume of liquid resources available to meet short-term obligations over time.
- Current Liability Trends
- Current liabilities demonstrated a general upward trajectory. Obligations rose from 8,269 million US$ in August 2021 to 11,409 million US$ by August 2026, reaching a peak of 12,547 million US$ in May 2026. The growth in short-term liabilities has occurred concurrently with the decline in current assets, exerting significant downward pressure on liquidity metrics.
- Current Ratio Interpretation
- The current ratio shifted from a high of 3.19 in August 2021 to 2.07 in August 2026. Notable declines are observed between February 2022 and May 2022, and again between November 2023 and May 2024. While the ratio remains comfortably above the 1.0 threshold, the consistent erosion of this figure signals a narrowing margin of safety and a potential shift in working capital management strategies.
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Quick Ratio
Nike Inc., quick ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | 6,903) | 7,563) | 6,660) | 6,974) | 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) | |||||||
| Short-term investments | 1,465) | 1,464) | 1,397) | 1,371) | 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) | |||||||
| Accounts receivable, net | 5,242) | 5,931) | 5,369) | 5,738) | 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) | |||||||
| Total quick assets | 13,610) | 14,958) | 13,426) | 14,083) | 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) | |||||||
| Current liabilities | 11,409) | 12,547) | 10,838) | 11,640) | 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) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.19 | 1.19 | 1.24 | 1.21 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.94 | 1.06 | 0.70 | 0.83 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 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).
1 Q1 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 13,610 ÷ 11,409 = 1.19
2 Click competitor name to see calculations.
The company's liquidity position has experienced a consistent long-term decline, as evidenced by the downward trajectory of the quick ratio. Over the analyzed period, the ratio decreased from a high of 2.18 in August 2021 to 1.19 by August 2026, indicating a reduced capacity to meet short-term obligations using only the most liquid assets.
- Quick Ratio Trends
- A significant contraction occurred between August 2021 and August 2022, where the ratio fell from 2.18 to 1.54. This was followed by a phase of relative stabilization from November 2022 through February 2024, with the ratio remaining within a tight range of 1.60 to 1.67. Following this period, a secondary decline emerged, with the ratio dropping steadily to 1.19 by the end of the period.
- Analysis of Total Quick Assets
- Total quick assets exhibited a general downward trend, falling from a peak of 18,849 million US dollars in November 2021 to 13,610 million US dollars in August 2026. Although there were intermittent recoveries—most notably a rise to 16,009 million US dollars in February 2024—the overall trend reflects a substantial reduction in the volume of highly liquid assets available to the organization.
- Current Liabilities Dynamics
- Current liabilities grew over the observed period, further pressuring the liquidity ratio. Liabilities increased from 8,269 million US dollars in August 2021 to a peak of 12,547 million US dollars in May 2026. The combination of rising short-term obligations and diminishing quick assets has resulted in a weakened liquidity profile, though the ratio remains above 1.0, suggesting that short-term obligations can still be covered without the sale of inventory.
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Cash Ratio
Nike Inc., cash ratio calculation (quarterly data)
| Aug 31, 2026 | May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and equivalents | 6,903) | 7,563) | 6,660) | 6,974) | 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) | |||||||
| Short-term investments | 1,465) | 1,464) | 1,397) | 1,371) | 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) | |||||||
| Total cash assets | 8,368) | 9,027) | 8,057) | 8,345) | 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) | |||||||
| Current liabilities | 11,409) | 12,547) | 10,838) | 11,640) | 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) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.73 | 0.72 | 0.74 | 0.72 | 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 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.84 | 0.96 | 0.56 | 0.74 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-31), 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 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).
1 Q1 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,368 ÷ 11,409 = 0.73
2 Click competitor name to see calculations.
A comprehensive analysis of the liquidity position from August 2021 through August 2026 reveals a consistent downward trend in the most immediate liquidity metric. The cash ratio, which measures the capacity to cover current liabilities using only cash and cash equivalents, declined from a peak of 1.71 in November 2021 to 0.73 by August 2026.
- Total Cash Assets Trend
- Liquid assets experienced a sustained general decline over the analyzed period. From a maximum of 15,103 million USD in November 2021, total cash assets decreased to a range between 8,000 million and 9,000 million USD during the 2025 and 2026 fiscal periods. This reduction indicates a significant contraction in the absolute volume of cash reserves held by the entity.
- Current Liabilities Trend
- Short-term obligations demonstrated a gradual upward trajectory. Current liabilities rose from 8,269 million USD in August 2021 to a peak of 12,547 million USD in May 2026. The simultaneous increase in liabilities and decrease in cash reserves created a compounding negative effect on the overall liquidity ratio.
- Cash Ratio Interpretation
- The cash ratio remained above the 1.0 threshold from August 2021 through May 2024, signifying that the entity maintained sufficient cash to settle all current liabilities immediately without relying on the sale of inventory or collection of receivables. However, a critical shift occurred in August 2024, when the ratio fell to 0.97 and continued to decline, ending at 0.73 in August 2026. This transition indicates a shift in the financial structure where cash alone is no longer sufficient to cover short-term obligations, necessitating a greater reliance on other current assets to maintain solvency.
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