Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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Short-term Activity Ratios (Summary)
Nike Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Nike Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Nike Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Nike Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Nike Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Nike Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Nike Inc. number of days of receivables outstanding improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Nike Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Nike Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Nike Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Inventory Turnover
Nike Inc., inventory turnover calculation, comparison to benchmarks
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
Inventory turnover = Cost of sales ÷ Inventories
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Nike Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Receivables Turnover
Nike Inc., receivables turnover calculation, comparison to benchmarks
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Nike Inc. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Payables Turnover
Nike Inc., payables turnover calculation, comparison to benchmarks
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
Payables turnover = Cost of sales ÷ Accounts payable
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Nike Inc. payables turnover ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
Working Capital Turnover
Nike Inc., working capital turnover calculation, comparison to benchmarks
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
Working capital turnover = Revenues ÷ Working capital
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Nike Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Inventory Processing Period
Nike Inc., average inventory processing period calculation, comparison to benchmarks
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Nike Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Receivable Collection Period
Nike Inc., average receivable collection period calculation, comparison to benchmarks
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Nike Inc. number of days of receivables outstanding improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Operating Cycle
Nike Inc., operating cycle calculation, comparison to benchmarks
No. days
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
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Nike Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Average Payables Payment Period
Nike Inc., average payables payment period calculation, comparison to benchmarks
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Nike Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level. |
Cash Conversion Cycle
Nike Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Nike Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |