Analysis of Long-term (Investment) Activity Ratios
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
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
The analysis of investment activity ratios indicates a period of increasing asset efficiency between 2021 and 2024, followed by a moderate decline in utilization through 2026. The overall trend suggests a peak in operational productivity mid-period, with subsequent adjustments in the relationship between revenue generation and the asset base.
- Net Fixed Asset Turnover
- The standard net fixed asset turnover ratio exhibited a consistent upward trajectory from 9.08 in 2021 to a peak of 10.27 in 2024, signaling improved efficiency in utilizing fixed assets to generate sales. This trend is mirrored in the ratio inclusive of operating lease right-of-use assets, which rose from 5.56 in 2021 to 6.65 in 2024. Following 2024, both metrics experienced a decline, with the standard ratio settling at 9.67 and the inclusive ratio at 6.08 by 2026, suggesting a relative increase in fixed asset investment or a deceleration in revenue growth relative to those assets.
- Total Asset Turnover
- Total asset turnover remained relatively stable in the early period, with a slight dip to 1.16 in 2022 before rising significantly to 1.36 in 2023. This peak represents the highest level of overall asset productivity during the analyzed timeframe. A gradual downward trend followed, resulting in a ratio of 1.21 by 2026, indicating a reduction in the efficiency with which the total asset base is being deployed to drive revenue.
- Equity Turnover
- Equity turnover demonstrated more volatility than fixed asset metrics. After a decline from 3.49 in 2021 to 3.06 in 2022, the ratio recovered to 3.66 in 2023. However, a consistent downward trend is observed from 2023 through 2026, where the ratio fell to 3.12. This decline indicates that the company is generating fewer sales per unit of shareholder equity, which may stem from an increase in retained earnings or a shift in the capital structure.
In summary, the data reveals a synchronized peak in asset utilization efficiency during the 2023-2024 period. The subsequent decline across all measured activity ratios suggests a transition toward lower asset productivity or an expansion of the balance sheet that has not yet been matched by proportional increases in revenue.
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Net Fixed Asset Turnover
Nike Inc., net fixed asset turnover calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 46,398) | 46,309) | 51,362) | 51,217) | 46,710) | 44,538) | |
| Property, plant and equipment, net | 4,796) | 4,828) | 5,000) | 5,081) | 4,791) | 4,904) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 9.67 | 9.59 | 10.27 | 10.08 | 9.75 | 9.08 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 5.46 | 5.95 | 6.22 | 6.39 | 6.74 | 5.90 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 8.61 | 9.32 | 9.34 | 9.26 | 8.66 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 2.79 | 3.24 | 3.51 | 3.48 | 3.32 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 46,398 ÷ 4,796 = 9.67
2 Click competitor name to see calculations.
An analysis of the net fixed asset turnover ratio reveals a period of increasing operational efficiency followed by a correction and subsequent stabilization. Between May 31, 2021, and May 31, 2024, there was a consistent upward trend in the ratio, indicating that the company generated increasingly higher revenues for every dollar invested in net property, plant, and equipment.
- Asset Efficiency Growth Phase (2021-2024)
- The net fixed asset turnover ratio rose from 9.08 in 2021 to a peak of 10.27 in 2024. This improvement was driven by a significant increase in revenues, which grew from 44,538 million to 51,362 million, while the net property, plant, and equipment remained relatively stable, fluctuating slightly around the 5,000 million mark. This pattern suggests an optimization of existing fixed assets to drive top-line growth.
- Revenue Contraction and Ratio Correction (2024-2025)
- A notable decline in efficiency is observed in 2025, where the turnover ratio dropped to 9.59. This decrease is primarily attributed to a sharp reduction in revenues, which fell to 46,309 million. Although the company also reduced its net fixed assets to 4,828 million during this period, the reduction in asset base was not sufficient to offset the loss in revenue, resulting in a lower turnover ratio.
- Stabilization Period (2025-2026)
- The data for May 31, 2026, indicates a period of stabilization. Revenues remained nearly flat at 46,398 million, and net property, plant, and equipment saw a marginal decrease to 4,796 million. Consequently, the net fixed asset turnover ratio showed a slight recovery to 9.67, suggesting that the asset utilization levels have reached a new equilibrium following the 2025 volatility.
Overall, the trend indicates that while the company achieved peak asset productivity in 2024, subsequent revenue declines have normalized the turnover ratio. Despite the recent dip, the ratio remains higher than the 2021 baseline, reflecting a general long-term increase in the efficiency of fixed asset utilization.
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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
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 46,398) | 46,309) | 51,362) | 51,217) | 46,710) | 44,538) | |
| Property, plant and equipment, net | 4,796) | 4,828) | 5,000) | 5,081) | 4,791) | 4,904) | |
| Operating lease right-of-use assets, net | 2,838) | 2,712) | 2,718) | 2,923) | 2,926) | 3,113) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 7,634) | 7,540) | 7,718) | 8,004) | 7,717) | 8,017) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 6.08 | 6.14 | 6.65 | 6.40 | 6.05 | 5.56 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| lululemon athletica inc. | 3.03 | 3.31 | 3.42 | 3.62 | 3.61 | 2.97 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Durables & Apparel | — | 5.30 | 5.79 | 5.79 | 5.61 | 5.15 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | — | 2.22 | 2.53 | 2.69 | 2.66 | 2.52 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 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)
= 46,398 ÷ 7,634 = 6.08
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a period of growth in asset efficiency followed by a moderate decline. Between May 2021 and May 2024, there is a consistent upward trend in the ratio, peaking at 6.65, which indicates an improved ability to generate sales from the company's investment in property, plant, equipment, and right-of-use assets.
- Efficiency Growth Phase (2021–2024)
- The net fixed asset turnover ratio increased from 5.56 in 2021 to 6.65 in 2024. This improvement was primarily driven by a steady increase in revenues, which grew from 44,538 million USD to 51,362 million USD over the same period. During this phase, the asset base remained relatively stable, allowing the growth in top-line revenue to directly enhance the turnover efficiency.
- Fixed Asset Base Stability
- The net property, plant, and equipment, including right-of-use assets, demonstrated minimal volatility, fluctuating within a narrow range between 7,540 million USD and 8,017 million USD. The lack of significant expansion in the fixed asset base suggests that revenue growth up to 2024 was achieved without requiring substantial new capital investments in physical infrastructure.
- Performance Contraction (2025–2026)
- A reversal in the efficiency trend is observed starting in May 2025, with the ratio declining to 6.14 and further dipping to 6.08 by May 2026. This deterioration in the turnover ratio is attributable to a contraction in revenues, which fell to approximately 46,300 million USD. Because the reduction in revenues was more pronounced than the reduction in the fixed asset base, the overall productivity of those assets decreased.
In summary, the period is characterized by an initial phase of increasing operational leverage and asset productivity, followed by a decline in efficiency resulting from reduced revenue generation against a largely stagnant asset base.
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Total Asset Turnover
Nike Inc., total asset turnover calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 46,398) | 46,309) | 51,362) | 51,217) | 46,710) | 44,538) | |
| Total assets | 38,410) | 36,579) | 38,110) | 37,531) | 40,321) | 37,740) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.21 | 1.27 | 1.35 | 1.36 | 1.16 | 1.18 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 1.31 | 1.39 | 1.36 | 1.45 | 1.27 | 1.05 | |
| Total Asset Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 1.29 | 1.35 | 1.38 | 1.17 | 1.17 | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | — | 0.86 | 0.93 | 0.97 | 0.96 | 0.88 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Total asset turnover = Revenues ÷ Total assets
= 46,398 ÷ 38,410 = 1.21
2 Click competitor name to see calculations.
Analysis of asset utilization indicates a period of increasing operational efficiency followed by a moderate decline. Revenues experienced consistent growth from 2021 through 2024, peaking at 51,362 million USD, before undergoing a contraction in 2025 and stabilizing in 2026.
- Revenue Performance
- A growth trend was observed between 2021 and 2024, characterized by a significant increase in 2023. This upward trajectory shifted in 2025, where revenues declined to 46,309 million USD, representing a reversal of the previous three-year expansion.
- Asset Base Stability
- Total assets exhibited fluctuations without a definitive linear trend, ranging from a high of 40,321 million USD in 2022 to a low of 36,579 million USD in 2025. The asset base remained relatively stable compared to the more volatile revenue movements.
- Total Asset Turnover Efficiency
- The total asset turnover ratio improved from 1.18 in 2021 to a peak of 1.36 in 2023, indicating enhanced efficiency in using assets to generate sales. However, a downward trend emerged after 2023, with the ratio declining to 1.21 by 2026. This decline correlates with the reduction in revenue levels while the asset base remained largely intact, suggesting a decrease in the productivity of the company's long-term investments.
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Equity Turnover
Nike Inc., equity turnover calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 46,398) | 46,309) | 51,362) | 51,217) | 46,710) | 44,538) | |
| Shareholders’ equity | 14,865) | 13,213) | 14,430) | 14,004) | 15,281) | 12,767) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 3.12 | 3.50 | 3.56 | 3.66 | 3.06 | 3.49 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| lululemon athletica inc. | 2.24 | 2.45 | 2.27 | 2.58 | 2.28 | 1.72 | |
| Equity Turnover, Sector | |||||||
| Consumer Durables & Apparel | — | 3.24 | 3.27 | 3.46 | 2.94 | 3.19 | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | — | 2.67 | 3.21 | 3.82 | 4.14 | 3.70 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Equity turnover = Revenues ÷ Shareholders’ equity
= 46,398 ÷ 14,865 = 3.12
2 Click competitor name to see calculations.
The analysis of long-term activity indicates a period of revenue expansion followed by a correction, coinciding with fluctuations in the shareholders' equity base. The efficiency of capital utilization, as measured by equity turnover, reached its zenith in 2023 before entering a gradual decline.
- Revenue Trends
- A growth phase is observed from 2021 through 2024, with revenues increasing from US$ 44,538 million to a peak of US$ 51,362 million. This upward trajectory was reversed in 2025, when revenues contracted to US$ 46,309 million, remaining nearly flat through 2026 at US$ 46,398 million.
- Shareholders' Equity Movements
- The equity base did not follow a linear trend, exhibiting volatility over the six-year period. After peaking at US$ 15,281 million in 2022, equity fluctuated, reaching a period low of US$ 13,213 million in 2025 before recovering to US$ 14,865 million by May 31, 2026.
- Equity Turnover Efficiency
- The equity turnover ratio demonstrates varying levels of effectiveness in generating sales from equity investments. The ratio experienced a dip to 3.06 in 2022 but surged to a peak of 3.66 in 2023, reflecting optimal asset utilization during that period. Subsequently, a downward trend is evident, with the ratio declining to 3.56 in 2024, 3.50 in 2025, and ending at 3.12 in 2026. This final decline suggests that revenue growth has not kept pace with the growth in shareholders' equity, leading to diminished investment efficiency.
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