Stock Analysis on Net

Nike Inc. (NYSE:NKE)

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel LibreOffice Calc

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.


Long-term Activity Ratios (Summary)

Nike Inc., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Net fixed asset turnover 9.08 7.69 8.25 8.17 8.61 9.20
Net fixed asset turnover (including operating lease, right-of-use asset) 5.56 4.70 8.25 8.17 8.61 9.20
Total asset turnover 1.18 1.19 1.65 1.62 1.48 1.51
Equity turnover 3.49 4.64 4.33 3.71 2.77 2.64

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Nike Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Nike Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Nike Inc. total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Nike Inc. equity turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Net Fixed Asset Turnover

Nike Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Revenues 44,538  37,403  39,117  36,397  34,350  32,376 
Property, plant and equipment, net 4,904  4,866  4,744  4,454  3,989  3,520 
Long-term Activity Ratio
Net fixed asset turnover1 9.08 7.69 8.25 8.17 8.61 9.20
Benchmarks
Net Fixed Asset Turnover, Industry
Consumer Discretionary 3.30 3.34 3.66 3.61 3.56

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 2021 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 44,538 ÷ 4,904 = 9.08

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Nike Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Nike Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Revenues 44,538  37,403  39,117  36,397  34,350  32,376 
 
Property, plant and equipment, net 4,904  4,866  4,744  4,454  3,989  3,520 
Operating lease right-of-use assets, net 3,113  3,097  —  —  —  — 
Property, plant and equipment, net (including operating lease, right-of-use asset) 8,017  7,963  4,744  4,454  3,989  3,520 
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 5.56 4.70 8.25 8.17 8.61 9.20
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Consumer Discretionary 2.56 2.60 3.13 3.61 3.56

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 44,538 ÷ 8,017 = 5.56

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Nike Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Total Asset Turnover

Nike Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Revenues 44,538  37,403  39,117  36,397  34,350  32,376 
Total assets 37,740  31,342  23,717  22,536  23,259  21,396 
Long-term Activity Ratio
Total asset turnover1 1.18 1.19 1.65 1.62 1.48 1.51
Benchmarks
Total Asset Turnover, Industry
Consumer Discretionary 0.92 0.89 0.98 1.00 0.97

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 2021 Calculation
Total asset turnover = Revenues ÷ Total assets
= 44,538 ÷ 37,740 = 1.18

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Nike Inc. total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Equity Turnover

Nike Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Revenues 44,538  37,403  39,117  36,397  34,350  32,376 
Shareholders’ equity 12,767  8,055  9,040  9,812  12,407  12,258 
Long-term Activity Ratio
Equity turnover1 3.49 4.64 4.33 3.71 2.77 2.64
Benchmarks
Equity Turnover, Industry
Consumer Discretionary 3.93 5.03 5.95 5.63 5.33

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 2021 Calculation
Equity turnover = Revenues ÷ Shareholders’ equity
= 44,538 ÷ 12,767 = 3.49

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Nike Inc. equity turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.