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: 2025-11-30), 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), 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 liquidity position, as indicated by the observed ratios, demonstrates a generally decreasing trend over the analyzed period. Initially, all three liquidity ratios – current, quick, and cash – exhibited strength and relative stability, but a consistent decline is apparent in the later quarters.
- Current Ratio
- The current ratio began at 2.55 and increased to a peak of 3.19 before initiating a downward trajectory. While remaining above 2.0 throughout most of the period, the ratio concluded at 2.06, representing a substantial decrease from its high point. This suggests a diminishing ability to cover short-term liabilities with short-term assets.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, increasing from 1.54 to 2.18 and then declining to 1.21. The rate of decline appears to accelerate towards the end of the observed timeframe. This indicates a weakening capacity to meet immediate obligations with the most liquid assets, excluding inventory.
- Cash Ratio
- The cash ratio, representing the most conservative measure of liquidity, also experienced a decline. Starting at 1.10, it rose to 1.71 before decreasing to 0.72. This signifies a reduction in the company’s ability to cover current liabilities solely with cash and cash equivalents. The magnitude of the decrease is notable, suggesting a potential shift in asset allocation or increased short-term obligations.
The consistent downward trend across all three ratios suggests a potential increase in reliance on financing or a strategic decision to invest in less liquid assets. Further investigation into the underlying components of current assets and current liabilities would be necessary to determine the specific drivers of these changes and assess the potential implications for the company’s financial health.
The period between August 31, 2020 and February 29, 2024 shows relative stability and growth in liquidity. However, the subsequent period through May 31, 2025 demonstrates a clear and accelerating deterioration in all measured liquidity metrics.
Current Ratio
Nike Inc., current ratio calculation (quarterly data)
| 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 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 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) | 26,291) | 24,700) | 23,607) | 21,937) | |||||||
| Current liabilities | 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) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 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 | 2.72 | 2.78 | 2.66 | 2.55 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 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 | 2.41 | 2.19 | 1.95 | 2.68 | |||||||
Based on: 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), 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 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,015 ÷ 11,640 = 2.06
2 Click competitor name to see calculations.
The current ratio exhibited a generally increasing trend from August 2020 through August 2021, followed by a period of fluctuation and then a noticeable decline from May 2022 onwards. Initial values indicated a healthy liquidity position, which subsequently weakened over the observed period.
- Initial Increasing Trend (Aug 31, 2020 – Aug 31, 2021)
- The current ratio increased from 2.55 in August 2020 to a peak of 3.19 in August 2021. This suggests an improvement in the company’s ability to cover its short-term liabilities with its short-term assets during this timeframe. The increase indicates a strengthening liquidity position.
- Period of Fluctuations (Nov 30, 2021 – May 31, 2022)
- Following the peak in August 2021, the current ratio experienced some volatility, decreasing to 3.07 in November 2021, then slightly increasing to 3.06 in February 2022, before declining to 2.63 in May 2022. This period suggests a stabilization, albeit at a slightly lower level, after the initial growth.
- Downward Trend (May 31, 2022 – Nov 30, 2025)
- From May 2022, a consistent downward trend is observed in the current ratio. It decreased from 2.63 to 2.06 in February 2025, and further to 2.06 in May 2025, and finally to 2.06 in November 2025. This indicates a weakening ability to meet short-term obligations with current assets. The ratio’s decline suggests a potential increase in liquidity risk.
- Magnitude of Change
- The largest single-period decrease occurred between February 2024 and May 2024, dropping from 2.74 to 2.40. The overall decline from the peak of 3.19 in August 2021 to the latest value of 2.06 in November 2025 represents a substantial reduction in the current ratio, indicating a significant shift in the company’s liquidity profile.
The observed trends suggest a potential need for monitoring of short-term asset management and liability obligations. The declining current ratio warrants further investigation into the underlying factors contributing to this trend, such as changes in working capital management or shifts in the composition of current assets and liabilities.
Quick Ratio
Nike Inc., quick ratio calculation (quarterly data)
| 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 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and equivalents | 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) | 9,889) | 8,516) | 8,635) | 8,148) | |||||||
| Short-term investments | 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) | 3,587) | 4,012) | 3,177) | 1,332) | |||||||
| Accounts receivable, net | 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) | 4,463) | 3,669) | 3,713) | 3,813) | |||||||
| Total quick assets | 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) | 17,939) | 16,197) | 15,525) | 13,293) | |||||||
| Current liabilities | 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) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 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 | 1.85 | 1.82 | 1.75 | 1.54 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 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 | 1.37 | 0.74 | 0.75 | 1.38 | |||||||
Based on: 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), 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 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,083 ÷ 11,640 = 1.21
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally trending downwards from a peak in late 2021 before stabilizing in recent quarters. Initial values indicate a strengthening liquidity position, followed by a period of decline and eventual leveling off. The ratio consistently remains above 1.0 throughout the observed timeframe, suggesting a generally healthy short-term liquidity position.
- Initial Increase (Aug 31, 2020 – Aug 31, 2021)
- The quick ratio experienced a notable increase from 1.54 in August 2020 to a high of 2.18 in August 2021. This improvement suggests a strengthening ability to meet short-term obligations with highly liquid assets. Both total quick assets and current liabilities contributed to this change, with quick assets increasing at a faster rate than current liabilities during this period.
- Subsequent Decline (Nov 30, 2021 – May 31, 2024)
- Following the peak in August 2021, the quick ratio generally decreased, falling to 1.51 by May 2024. This decline was driven by a combination of factors, including a decrease in total quick assets and an increase in current liabilities. The increase in current liabilities was particularly pronounced between February 2022 and May 2024.
- Recent Stabilization (Aug 31, 2024 – May 31, 2025)
- From August 2024 through May 2025, the quick ratio exhibited a period of relative stability, fluctuating between 1.31 and 1.67. While some quarterly variation exists, the ratio did not demonstrate a clear upward or downward trend. This suggests a potential equilibrium between the company’s liquid assets and its short-term obligations.
- Total Quick Assets Trend
- Total quick assets increased from US$13,293 million in August 2020 to US$18,036 million in August 2021. Subsequently, they decreased to US$13,539 million in May 2024, before increasing again to US$16,009 million in May 2025. This pattern mirrors the overall trend in the quick ratio.
- Current Liabilities Trend
- Current liabilities remained relatively stable between August 2020 and November 2021, fluctuating between US$8,269 million and US$8,894 million. A more significant increase was observed from February 2022, peaking at US$11,640 million in May 2025. This increase in current liabilities contributed to the decline in the quick ratio during the latter part of the analyzed period.
Cash Ratio
Nike Inc., cash ratio calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and equivalents | 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) | 9,889) | 8,516) | 8,635) | 8,148) | |||||||
| Short-term investments | 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) | 3,587) | 4,012) | 3,177) | 1,332) | |||||||
| Total cash assets | 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) | 13,476) | 12,528) | 11,812) | 9,480) | |||||||
| Current liabilities | 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) | 9,674) | 8,894) | 8,871) | 8,619) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 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 | 1.39 | 1.41 | 1.33 | 1.10 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 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 | 1.30 | 0.66 | 0.69 | 1.30 | |||||||
Based on: 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), 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 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,345 ÷ 11,640 = 0.72
2 Click competitor name to see calculations.
The cash ratio exhibited fluctuations over the observed period, generally decreasing from a high of 1.71 to a low of 0.72. Initial values demonstrated a strengthening liquidity position, followed by a period of decline and stabilization.
- Initial Strengthening (Aug 31, 2020 – Nov 30, 2021)
- The cash ratio increased from 1.10 to 1.71. This indicates an improving ability to meet short-term obligations with readily available cash. Total cash assets increased significantly during this period, while current liabilities remained relatively stable, contributing to the ratio’s improvement.
- Subsequent Decline (Feb 28, 2022 – Nov 30, 2023)
- Following the peak, the cash ratio experienced a decline, falling to 1.10. This decrease was driven by a combination of factors: a reduction in total cash assets and an increase in current liabilities. While cash assets decreased, the increase in current liabilities exerted a more substantial downward pressure on the ratio.
- Recent Stabilization and Further Decline (Feb 29, 2024 – Nov 30, 2025)
- The ratio showed some stabilization around 1.17 before resuming a downward trend, ultimately reaching 0.72. This recent decline suggests a weakening in the company’s immediate liquidity position. Both total cash assets and current liabilities contributed to this trend, with current liabilities increasing at a faster rate than cash assets.
Overall, the trend suggests a shift in the company’s liquidity profile. While initially strong, the ability to cover short-term liabilities with cash has diminished over time. Continued monitoring of this ratio is recommended to assess potential risks associated with short-term solvency.