Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Nike Inc., solvency 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 solvency ratios presented demonstrate a generally stable financial position over the analyzed period, spanning from August 2020 to November 2025. A consistent, albeit gradual, decrease in leverage is observed across all metrics, suggesting a strengthening of the company’s financial structure. While fluctuations exist, these appear to be within a narrow range, indicating a controlled approach to debt management.
- Debt to Equity
- The debt to equity ratio exhibits a declining trend, moving from 1.03 in August 2020 to 0.57 in November 2025. The most significant decrease occurred between August 2020 and February 2021, followed by a more gradual reduction. The ratio stabilizes around 0.60-0.65 for much of the period between February 2022 and May 2023, before continuing its downward trajectory. This indicates a decreasing reliance on equity financing relative to debt.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric also shows a consistent decline, starting at 1.41 in August 2020 and reaching 0.80 by November 2025. The inclusion of operating lease liabilities results in higher values, but the trend remains consistent with the standard ratio. The rate of decline appears to moderate between August 2021 and February 2023, before resuming a more pronounced decrease.
- Debt to Capital
- The debt to capital ratio mirrors the trends observed in the debt to equity ratios, decreasing from 0.51 in August 2020 to 0.36 in November 2025. This suggests a decreasing proportion of debt in the company’s capital structure. The decline is relatively smooth, with minor fluctuations throughout the period.
- Debt to Capital (Including Operating Lease Liability)
- This ratio, incorporating operating lease liabilities, also demonstrates a consistent downward trend, starting at 0.58 in August 2020 and ending at 0.44 in November 2025. The values are higher than the standard debt to capital ratio, reflecting the impact of lease obligations, but the overall trend remains consistent.
- Debt to Assets
- The debt to assets ratio shows a decrease from 0.29 in August 2020 to 0.21 in November 2025. This indicates a decreasing proportion of assets financed by debt. The decline is gradual and relatively consistent throughout the period.
- Debt to Assets (Including Operating Lease Liability)
- This metric, including operating lease liabilities, begins at 0.39 in August 2020 and declines to 0.30 by November 2025. The trend is consistent with the standard debt to assets ratio, with higher values reflecting the inclusion of lease obligations. The rate of decline is relatively stable.
- Financial Leverage
- Financial leverage, measured as total assets to total equity, decreases from 3.61 in August 2020 to 2.68 in November 2025. This indicates a reduced reliance on equity to finance assets, aligning with the observed decreases in other debt ratios. A slight increase is observed in August 2024, before resuming the downward trend.
Overall, the data suggests a strengthening solvency position. The consistent decline in all analyzed ratios indicates a prudent approach to debt management and a decreasing reliance on debt financing. The inclusion of operating lease liabilities consistently results in higher ratio values, but does not alter the observed trends.
Debt Ratios
Debt to Equity
Nike Inc., debt to equity 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 portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.57 | 0.59 | 0.60 | 0.64 | 0.64 | 0.65 | 0.62 | 0.63 | 0.63 | 0.64 | 0.64 | 0.65 | 0.62 | 0.60 | 0.62 | 0.64 | 0.63 | 0.66 | 0.74 | 0.79 | 0.89 | 1.03 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 8,015 ÷ 14,085 = 0.57
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a consistent downward trend, indicating a strengthening of the company’s financial position with respect to its leverage. Initially, the ratio stood at 1.03 as of August 31, 2020, representing a slightly higher level of debt relative to equity. Over the subsequent quarters, the ratio decreased, reaching a low of 0.57 by August 31, 2025.
- Overall Trend
- A clear and sustained decline in the debt to equity ratio is observed throughout the analyzed period. This suggests the company has been reducing its reliance on debt financing relative to equity financing, or has been increasing equity at a faster rate than debt.
- Initial Phase (Aug 31, 2020 – Nov 30, 2021)
- From August 31, 2020, to November 30, 2021, the debt to equity ratio decreased from 1.03 to 0.63. This represents a significant reduction in leverage during this period. The decrease is attributable to a combination of a slight decrease in total debt and a substantial increase in shareholders’ equity.
- Stabilization Phase (Feb 28, 2022 – May 31, 2024)
- Between February 28, 2022, and May 31, 2024, the ratio fluctuated within a narrow range, between 0.60 and 0.65. This suggests a period of relative stability in the company’s capital structure. Both total debt and shareholders’ equity experienced moderate changes during this time, resulting in a relatively consistent ratio.
- Recent Phase (Aug 31, 2024 – Nov 30, 2025)
- The most recent phase, from August 31, 2024, to November 30, 2025, shows a continued downward trend, with the ratio decreasing from 0.64 to 0.60. This is accompanied by a decrease in total debt and a corresponding decrease in shareholders’ equity, though the debt reduction is more pronounced.
In summary, the consistent decline in the debt to equity ratio indicates improving solvency and a reduced financial risk profile. The company appears to be effectively managing its debt levels while simultaneously growing its equity base, resulting in a more balanced and stable capital structure.
Debt to Equity (including Operating Lease Liability)
Nike Inc., debt to equity (including operating lease liability) 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 portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Current portion of operating lease liabilities | 513) | 506) | 502) | 474) | 481) | 491) | 477) | 474) | 456) | 435) | 425) | 435) | 426) | 424) | 420) | 455) | 462) | 462) | 467) | 470) | 458) | 459) | |||||||
| Operating lease liabilities, excluding current portion | 2,754) | 2,555) | 2,550) | 2,477) | 2,562) | 2,625) | 2,566) | 2,691) | 2,785) | 2,807) | 2,786) | 2,692) | 2,668) | 2,736) | 2,777) | 2,784) | 2,835) | 2,898) | 2,931) | 2,964) | 2,896) | 2,961) | |||||||
| Total debt (including operating lease liability) | 11,282) | 11,061) | 11,018) | 11,911) | 12,065) | 12,126) | 11,952) | 12,101) | 12,177) | 12,177) | 12,144) | 12,566) | 12,525) | 12,591) | 12,627) | 12,657) | 12,723) | 12,790) | 12,813) | 12,850) | 12,805) | 12,966) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.80 | 0.82 | 0.83 | 0.85 | 0.86 | 0.87 | 0.83 | 0.85 | 0.86 | 0.87 | 0.87 | 0.86 | 0.82 | 0.80 | 0.83 | 0.85 | 0.85 | 0.89 | 1.00 | 1.08 | 1.20 | 1.41 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.40 | 0.40 | 0.36 | 0.38 | 0.36 | 0.33 | 0.33 | 0.33 | 0.34 | 0.33 | 0.34 | 0.34 | 0.33 | 0.34 | 0.32 | 0.32 | 0.30 | 0.30 | 0.31 | 0.36 | 0.39 | 0.43 | |||||||
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 11,282 ÷ 14,085 = 0.80
2 Click competitor name to see calculations.
The debt to equity ratio, incorporating operating lease liabilities, demonstrates a generally decreasing trend over the analyzed period, spanning from August 2020 to November 2025. Initially, the ratio stood at 1.41, indicating a substantial level of debt relative to shareholders’ equity. However, subsequent quarters reveal a consistent reduction in this ratio, suggesting improved solvency and a decreasing reliance on debt financing.
- Initial Decline (Aug 31, 2020 – Aug 31, 2021)
- From August 2020 to August 2021, the debt to equity ratio experienced a significant decline, moving from 1.41 to 0.89. This reduction is attributable to a combination of factors, including a decrease in total debt and, more prominently, a substantial increase in shareholders’ equity. The growth in equity outpaced the reduction in debt during this period.
- Stabilization and Fluctuations (Nov 30, 2021 – May 31, 2023)
- Following the initial decline, the ratio stabilized within a relatively narrow range, fluctuating between 0.82 and 0.87. Total debt remained relatively consistent, while shareholders’ equity experienced moderate variations. This period suggests a more balanced capital structure.
- Recent Trend (Aug 31, 2023 – Nov 30, 2025)
- From August 2023 to November 2025, the ratio exhibits a slight downward trend, decreasing from 0.86 to 0.83. This is driven by a more pronounced decrease in total debt, while shareholders’ equity remains relatively stable. The latest value of 0.83 indicates a continued improvement in the company’s financial leverage.
- Shareholders’ Equity Growth
- Shareholders’ equity consistently increased throughout most of the analyzed period, peaking at 15,822 in August 2022. While there have been some fluctuations, the overall trend is positive, contributing significantly to the reduction in the debt to equity ratio. A slight decrease in equity is observed in the most recent periods, but it does not offset the overall positive trend.
- Total Debt Trend
- Total debt, including operating lease liabilities, has generally decreased over the period, although the decline is less pronounced than the growth in shareholders’ equity. The most significant reduction in debt occurs in the later periods, contributing to the recent downward trend in the debt to equity ratio.
In summary, the observed trend in the debt to equity ratio suggests a strengthening financial position. The company has effectively reduced its reliance on debt financing, supported by consistent growth in shareholders’ equity. The ratio’s movement towards lower values indicates improved solvency and a more conservative capital structure.
Debt to Capital
Nike Inc., debt to capital 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 portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Total capital | 22,100) | 21,468) | 21,179) | 22,967) | 23,059) | 22,954) | 23,339) | 23,162) | 23,082) | 22,906) | 22,937) | 23,970) | 24,703) | 25,253) | 24,711) | 24,227) | 24,350) | 23,773) | 22,182) | 21,347) | 20,091) | 18,770) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.36 | 0.37 | 0.38 | 0.39 | 0.39 | 0.39 | 0.38 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.38 | 0.37 | 0.38 | 0.39 | 0.39 | 0.40 | 0.42 | 0.44 | 0.47 | 0.51 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
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
Debt to capital = Total debt ÷ Total capital
= 8,015 ÷ 22,100 = 0.36
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a consistent, albeit gradual, downward trend. Initially, the ratio stood at 0.51, indicating that 51% of the company’s capital was financed by debt as of August 31, 2020. Over the subsequent quarters, this ratio steadily decreased, reaching a low of 0.36 by May 31, 2025.
- Overall Trend
- A clear decreasing trend is observed in the debt to capital ratio throughout the analyzed period. The decline is not precipitous, but rather a consistent reduction from 0.51 to 0.36. This suggests a decreasing reliance on debt financing relative to other forms of capital.
- Initial Phase (Aug 31, 2020 – Nov 30, 2021)
- The ratio experienced a relatively rapid decline during this phase, moving from 0.51 to 0.39. This represents a 23.5% decrease in the proportion of capital financed by debt within two years. This initial reduction could be attributed to various factors, including increased profitability leading to retained earnings, or equity issuance.
- Stabilization Phase (Feb 28, 2022 – Aug 31, 2023)
- From February 2022 through August 2023, the ratio remained remarkably stable, fluctuating between 0.37 and 0.39. This suggests a period of consistent capital structure management, with no significant shifts in the balance between debt and other capital sources.
- Final Phase (Nov 30, 2023 – May 31, 2025)
- The ratio continued its downward trajectory in the latter part of the period, decreasing from 0.39 to 0.36. This final decline, while less dramatic than the initial phase, reinforces the overall trend of decreasing debt reliance. The decrease in total debt, coupled with a relatively stable total capital, contributed to this reduction.
The consistent decline in the debt to capital ratio generally indicates improving solvency and a reduced level of financial risk. The company appears to be managing its debt effectively and potentially shifting towards a more equity-based capital structure. However, further investigation into the specific reasons behind these changes, such as debt repayment schedules, equity offerings, and profitability trends, would be necessary for a more comprehensive understanding.
Debt to Capital (including Operating Lease Liability)
Nike Inc., debt to capital (including operating lease liability) 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 portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Current portion of operating lease liabilities | 513) | 506) | 502) | 474) | 481) | 491) | 477) | 474) | 456) | 435) | 425) | 435) | 426) | 424) | 420) | 455) | 462) | 462) | 467) | 470) | 458) | 459) | |||||||
| Operating lease liabilities, excluding current portion | 2,754) | 2,555) | 2,550) | 2,477) | 2,562) | 2,625) | 2,566) | 2,691) | 2,785) | 2,807) | 2,786) | 2,692) | 2,668) | 2,736) | 2,777) | 2,784) | 2,835) | 2,898) | 2,931) | 2,964) | 2,896) | 2,961) | |||||||
| Total debt (including operating lease liability) | 11,282) | 11,061) | 11,018) | 11,911) | 12,065) | 12,126) | 11,952) | 12,101) | 12,177) | 12,177) | 12,144) | 12,566) | 12,525) | 12,591) | 12,627) | 12,657) | 12,723) | 12,790) | 12,813) | 12,850) | 12,805) | 12,966) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Total capital (including operating lease liability) | 25,367) | 24,529) | 24,231) | 25,918) | 26,102) | 26,070) | 26,382) | 26,327) | 26,323) | 26,148) | 26,148) | 27,097) | 27,797) | 28,413) | 27,908) | 27,466) | 27,647) | 27,133) | 25,580) | 24,781) | 23,445) | 22,190) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.47 | 0.45 | 0.46 | 0.46 | 0.47 | 0.46 | 0.46 | 0.45 | 0.44 | 0.45 | 0.46 | 0.46 | 0.47 | 0.50 | 0.52 | 0.55 | 0.58 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.29 | 0.28 | 0.27 | 0.28 | 0.27 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.25 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.26 | 0.28 | 0.30 | |||||||
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,282 ÷ 25,367 = 0.44
2 Click competitor name to see calculations.
The debt to capital ratio, inclusive of operating lease liabilities, demonstrates a consistent downward trend over the analyzed period, spanning from August 2020 to November 2025. Initially, the ratio stood at 0.58, indicating that debt comprised 58% of the company’s capital structure. Throughout the period, the ratio generally decreased, reaching a low of 0.44 in the August 2025 period.
- Overall Trend
- A clear declining trend is observed in the debt to capital ratio. The ratio decreased from 0.58 in August 2020 to 0.44 in August 2025, representing a reduction of 14 percentage points. This suggests a strengthening of the company’s financial leverage position over time, with a decreasing reliance on debt financing relative to its capital base.
- Initial Phase (Aug 2020 – Nov 2021)
- From August 2020 to November 2021, the ratio experienced a relatively rapid decline, moving from 0.58 to 0.46. This initial decrease suggests proactive debt management or an increase in equity during this period. The decline was not strictly linear, with a slight increase from 0.55 to 0.58 between November 2020 and February 2021, but the overall direction remained downward.
- Stabilization Phase (Nov 2021 – May 2023)
- Between November 2021 and May 2023, the ratio exhibited a period of relative stability, fluctuating between 0.45 and 0.47. This suggests a pause in the trend of decreasing leverage, potentially indicating a period of investment or strategic financing decisions that maintained the debt-to-capital structure within a narrow range.
- Recent Phase (May 2023 – Nov 2025)
- From May 2023 to November 2025, the ratio continued its downward trajectory, decreasing from 0.47 to 0.44. Notably, there was a more significant decrease to 0.45 in May 2025, followed by a slight increase to 0.44 in August 2025 and a final value of 0.44 in November 2025. This recent decline reinforces the overall trend of reduced financial leverage.
The consistent decrease in the debt to capital ratio suggests improved financial health and reduced risk associated with debt obligations. However, further investigation into the specific factors driving these changes, such as debt repayment schedules, equity issuance, and capital expenditure policies, would be necessary for a more comprehensive understanding.
Debt to Assets
Nike Inc., debt to assets 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 portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Total assets | 37,787) | 37,334) | 36,579) | 37,793) | 37,959) | 37,867) | 38,110) | 37,356) | 37,203) | 36,786) | 37,531) | 38,294) | 39,647) | 41,088) | 40,321) | 39,577) | 38,917) | 37,917) | 37,740) | 36,185) | 34,836) | 33,258) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.21 | 0.21 | 0.22 | 0.24 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.24 | 0.25 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.29 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
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
Debt to assets = Total debt ÷ Total assets
= 8,015 ÷ 37,787 = 0.21
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening solvency position. Initially, the ratio stood at 0.29 in August 2020, and experienced a consistent decline over the subsequent quarters.
- Overall Trend
- From August 2020 to May 2025, the ratio decreased from 0.29 to 0.21. This suggests a reduction in the proportion of assets financed by debt over this timeframe. The most significant decrease occurred between February 2024 and May 2025, dropping from 0.21 to 0.21.
- Initial Decline (Aug 2020 - Nov 2021)
- The ratio exhibited a steady decline from 0.29 in August 2020 to 0.24 in November 2021. This period reflects a consistent reduction in leverage, potentially due to debt repayment or asset growth outpacing debt accumulation.
- Period of Stability (Nov 2021 - Nov 2022)
- Between November 2021 and November 2022, the ratio remained relatively stable, fluctuating between 0.24 and 0.25. This suggests a period where the company maintained its existing capital structure without significant changes in debt or asset levels.
- Recent Trend (Feb 2023 - May 2025)
- From February 2023 to May 2025, the ratio continued its downward trajectory, decreasing from 0.25 to 0.21. This recent decline indicates a renewed focus on reducing financial leverage, potentially in response to changing economic conditions or internal strategic decisions. The total debt decreased from US$9,439 million to US$7,966 million, while total assets decreased from US$38,294 million to US$36,579 million.
The observed trend suggests the company has been actively managing its debt levels relative to its asset base, resulting in a more conservative capital structure over the analyzed period. The consistent decline in the debt-to-assets ratio generally indicates improved financial stability and reduced risk.
Debt to Assets (including Operating Lease Liability)
Nike Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 999) | —) | —) | 1,000) | 1,000) | 1,000) | 1,000) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | —) | 1) | |||||||
| Notes payable | —) | 4) | 5) | 4) | 49) | 12) | 6) | 6) | 6) | 6) | 6) | 14) | 7) | 9) | 10) | —) | 9) | 15) | 2) | 4) | 41) | 137) | |||||||
| Long-term debt, excluding current portion | 7,016) | 7,996) | 7,961) | 7,956) | 7,973) | 7,998) | 7,903) | 8,930) | 8,930) | 8,929) | 8,927) | 8,925) | 8,924) | 8,922) | 8,920) | 9,418) | 9,417) | 9,415) | 9,413) | 9,412) | 9,410) | 9,408) | |||||||
| Total debt | 8,015) | 8,000) | 7,966) | 8,960) | 9,022) | 9,010) | 8,909) | 8,936) | 8,936) | 8,935) | 8,933) | 9,439) | 9,431) | 9,431) | 9,430) | 9,418) | 9,426) | 9,430) | 9,415) | 9,416) | 9,451) | 9,546) | |||||||
| Current portion of operating lease liabilities | 513) | 506) | 502) | 474) | 481) | 491) | 477) | 474) | 456) | 435) | 425) | 435) | 426) | 424) | 420) | 455) | 462) | 462) | 467) | 470) | 458) | 459) | |||||||
| Operating lease liabilities, excluding current portion | 2,754) | 2,555) | 2,550) | 2,477) | 2,562) | 2,625) | 2,566) | 2,691) | 2,785) | 2,807) | 2,786) | 2,692) | 2,668) | 2,736) | 2,777) | 2,784) | 2,835) | 2,898) | 2,931) | 2,964) | 2,896) | 2,961) | |||||||
| Total debt (including operating lease liability) | 11,282) | 11,061) | 11,018) | 11,911) | 12,065) | 12,126) | 11,952) | 12,101) | 12,177) | 12,177) | 12,144) | 12,566) | 12,525) | 12,591) | 12,627) | 12,657) | 12,723) | 12,790) | 12,813) | 12,850) | 12,805) | 12,966) | |||||||
| Total assets | 37,787) | 37,334) | 36,579) | 37,793) | 37,959) | 37,867) | 38,110) | 37,356) | 37,203) | 36,786) | 37,531) | 38,294) | 39,647) | 41,088) | 40,321) | 39,577) | 38,917) | 37,917) | 37,740) | 36,185) | 34,836) | 33,258) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.30 | 0.30 | 0.30 | 0.32 | 0.32 | 0.32 | 0.31 | 0.32 | 0.33 | 0.33 | 0.32 | 0.33 | 0.32 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.34 | 0.36 | 0.37 | 0.39 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 0.23 | 0.23 | 0.21 | 0.21 | 0.22 | 0.21 | 0.20 | 0.19 | 0.20 | 0.20 | 0.19 | 0.20 | 0.19 | 0.19 | 0.18 | 0.19 | 0.18 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | |||||||
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,282 ÷ 37,787 = 0.30
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liability, demonstrates a generally decreasing trend over the analyzed period, spanning from August 2020 to November 2025. Initially, the ratio stood at 0.39, and while fluctuations occurred, it generally declined to 0.30 by the end of the observation window.
- Overall Trend
- A consistent downward trajectory is evident in the debt to assets ratio. The ratio decreased from 0.39 in August 2020 to 0.30 in November 2025, indicating a relative reduction in leverage over time. The most significant declines occurred between May 2022 and May 2025.
- Short-Term Fluctuations
- Despite the overall downward trend, the ratio experienced some quarterly variations. For example, a slight increase was observed from February 2023 (0.33) to August 2023 (0.33), followed by stability through November 2023. A similar pattern of minor increases and decreases is visible throughout the period, suggesting potential impacts from short-term financing decisions or asset revaluations.
- Recent Period (May 2024 - November 2025)
- The ratio remained relatively stable between May 2024 (0.31) and February 2025 (0.32), before decreasing to 0.30 in November 2025. This suggests a recent stabilization in the company’s leverage position, followed by a final reduction.
- Total Debt and Total Assets
- Total debt decreased from US$12,966 million in August 2020 to US$11,061 million in November 2025. Total assets experienced an initial increase from US$33,258 million in August 2020 to US$41,088 million in August 2022, then decreased to US$36,579 million in November 2025. The combined effect of these movements contributed to the observed decline in the debt to assets ratio.
In conclusion, the observed trend suggests a strengthening of the company’s solvency position over the analyzed period, as the proportion of assets financed by debt has decreased. The fluctuations, while present, do not appear to significantly alter the overall downward trend.
Financial Leverage
Nike Inc., financial leverage calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 37,787) | 37,334) | 36,579) | 37,793) | 37,959) | 37,867) | 38,110) | 37,356) | 37,203) | 36,786) | 37,531) | 38,294) | 39,647) | 41,088) | 40,321) | 39,577) | 38,917) | 37,917) | 37,740) | 36,185) | 34,836) | 33,258) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 2.68 | 2.77 | 2.77 | 2.70 | 2.70 | 2.72 | 2.64 | 2.63 | 2.63 | 2.63 | 2.68 | 2.64 | 2.60 | 2.60 | 2.64 | 2.67 | 2.61 | 2.64 | 2.96 | 3.03 | 3.27 | 3.61 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 1.71 | 1.73 | 1.76 | 1.78 | 1.67 | 1.62 | 1.68 | 1.71 | 1.70 | 1.68 | 1.78 | 1.75 | 1.72 | 1.76 | 1.80 | 1.72 | 1.65 | 1.64 | 1.64 | 1.68 | 1.75 | 1.74 | |||||||
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 37,787 ÷ 14,085 = 2.68
2 Click competitor name to see calculations.
The financial leverage ratio for the analyzed period demonstrates a generally decreasing trend, followed by a period of relative stability and a slight increase towards the end of the observed timeframe. Initially, the ratio exhibited a decline from 3.61 to 2.61 between August 2020 and November 2021. This suggests a reduction in the proportion of assets financed by equity holders, indicating a shift towards greater financial independence or a more conservative capital structure during that period. Following this decline, the ratio remained relatively stable, fluctuating between 2.60 and 2.72 for approximately six quarters, from February 2022 to August 2023. This stability suggests a consistent approach to financial leverage during this phase. However, a slight upward trend is observed in the most recent quarters, with the ratio increasing from 2.72 to 2.77 by November 2025. This indicates a modest increase in financial leverage towards the end of the analyzed period.
- Overall Trend
- The overall trend indicates a move towards lower financial leverage in the earlier part of the period, followed by a period of stability, and a recent slight increase. The initial decrease could be attributed to various factors, including debt reduction, increased equity financing, or asset growth financed by retained earnings. The subsequent stability suggests a deliberate maintenance of the capital structure, while the recent increase warrants further investigation to determine its underlying causes.
- Period of Decline (Aug 31, 2020 – Nov 30, 2021)
- During this period, the financial leverage ratio decreased significantly, from 3.61 to 2.61. This represents a substantial reduction in the company’s reliance on debt financing relative to equity. The rate of decline was most pronounced between August 2020 and February 2021.
- Period of Stability (Feb 28, 2022 – Aug 31, 2023)
- From February 2022 through August 2023, the ratio exhibited minimal fluctuation, remaining within a narrow range of 2.60 to 2.72. This suggests a conscious effort to maintain a consistent level of financial leverage. The consistency could be a result of a defined capital structure policy.
- Recent Increase (Nov 30, 2024 – Nov 30, 2025)
- The most recent data indicates a slight increase in the financial leverage ratio, rising from 2.70 to 2.77. While the increase is modest, it represents a departure from the preceding period of stability and may signal a change in financing strategy or capital allocation decisions.
It is important to note that the financial leverage ratio alone does not provide a complete picture of a company’s financial health. A comprehensive assessment would require consideration of other solvency ratios, profitability metrics, and industry benchmarks.