Nike Inc. (NKE)

Liquidity Analysis Quarterly Data

Difficulty: Beginner

Liquidity ratios measure the company's ability to meet its short-term obligations.

Nike Inc., liquidity ratios (quarterly data)

Source: Based on data from Nike Inc. Quarterly and Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Nike Inc.'s current ratio deteriorated from Q1 2018 to Q2 2018 but then improved from Q2 2018 to Q3 2018 not reaching Q1 2018 level.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Nike Inc.'s quick ratio deteriorated from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Nike Inc.'s cash ratio improved from Q1 2018 to Q2 2018 but then deteriorated significantly from Q2 2018 to Q3 2018.

Nike Inc., current ratio calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Current assets
	Current liabilities
	Ratio
	Current ratio¹

Source: Based on data from Nike Inc. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Nike Inc.'s current ratio deteriorated from Q1 2018 to Q2 2018 but then improved from Q2 2018 to Q3 2018 not reaching Q1 2018 level.

Nike Inc., quick ratio calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Cash and equivalents
	Short-term investments
	Accounts receivable, net
	Total quick assets
	Current liabilities
	Ratio
	Quick ratio¹

Source: Based on data from Nike Inc. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

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.'s quick ratio deteriorated from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.

Nike Inc., cash ratio calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Cash and equivalents
	Short-term investments
	Total cash assets
	Current liabilities
	Ratio
	Cash ratio¹

Source: Based on data from Nike Inc. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Nike Inc.'s cash ratio improved from Q1 2018 to Q2 2018 but then deteriorated significantly from Q2 2018 to Q3 2018.

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Discounted Cash Flow (DCF) Valuation
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Financial Reporting Quality

	All companies
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality