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

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Nike Inc., short-term (operating) activity ratios

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Turnover Ratios
Inventory turnover	3.00	3.59	2.87	3.85	3.89	3.77
Receivables turnover	10.01	9.98	13.61	9.16	10.41	9.34
Payables turnover	7.51	8.67	9.41	8.29	8.97	9.30
Working capital turnover	2.67	2.68	3.05	4.52	4.00	3.24
Average No. Days
Average inventory processing period	122	102	127	95	94	97
Add: Average receivable collection period	36	37	27	40	35	39
Operating cycle	158	139	154	135	129	136
Less: Average payables payment period	49	42	39	44	41	39
Cash conversion cycle	109	97	115	91	88	97

Based on: 10-K (reporting date: 2022-05-31), 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).

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Nike Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Nike Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Nike Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 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 deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Nike Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
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 increased from 2020 to 2021 and from 2021 to 2022.
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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Nike Inc., inventory turnover calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales	25,231)	24,576)	21,162)	21,643)	20,441)	19,038)
Inventories	8,420)	6,854)	7,367)	5,622)	5,261)	5,055)
Short-term Activity Ratio
Inventory turnover¹	3.00	3.59	2.87	3.85	3.89	3.77
Benchmarks
Inventory Turnover, Industry
Consumer Discretionary	—	7.00	7.44	7.66	7.97	7.61

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 25,231 ÷ 8,420 = 3.00

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Nike Inc., receivables turnover calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data (US$ in millions)
Revenues	46,710)	44,538)	37,403)	39,117)	36,397)	34,350)
Accounts receivable, net	4,667)	4,463)	2,749)	4,272)	3,498)	3,677)
Short-term Activity Ratio
Receivables turnover¹	10.01	9.98	13.61	9.16	10.41	9.34
Benchmarks
Receivables Turnover, Industry
Consumer Discretionary	—	19.67	20.05	19.88	20.51	20.23

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 46,710 ÷ 4,667 = 10.01

Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Nike Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Nike Inc., payables turnover calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales	25,231)	24,576)	21,162)	21,643)	20,441)	19,038)
Accounts payable	3,358)	2,836)	2,248)	2,612)	2,279)	2,048)
Short-term Activity Ratio
Payables turnover¹	7.51	8.67	9.41	8.29	8.97	9.30
Benchmarks
Payables Turnover, Industry
Consumer Discretionary	—	4.65	4.67	5.43	5.66	5.34

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 25,231 ÷ 3,358 = 7.51

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 decreased from 2020 to 2021 and from 2021 to 2022.

Nike Inc., working capital turnover calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data (US$ in millions)
Current assets	28,213)	26,291)	20,556)	16,525)	15,134)	16,061)
Less: Current liabilities	10,730)	9,674)	8,284)	7,866)	6,040)	5,474)
Working capital	17,483)	16,617)	12,272)	8,659)	9,094)	10,587)

Revenues	46,710)	44,538)	37,403)	39,117)	36,397)	34,350)
Short-term Activity Ratio
Working capital turnover¹	2.67	2.68	3.05	4.52	4.00	3.24
Benchmarks
Working Capital Turnover, Industry
Consumer Discretionary	—	13.01	15.65	45.70	25.34	26.87

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Working capital turnover = Revenues ÷ Working capital
= 46,710 ÷ 17,483 = 2.67

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 2020 to 2021 and from 2021 to 2022.

Nike Inc., average inventory processing period calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data
Inventory turnover	3.00	3.59	2.87	3.85	3.89	3.77
Short-term Activity Ratio (no. days)
Average inventory processing period¹	122	102	127	95	94	97
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Consumer Discretionary	—	52	49	48	46	48

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.00 = 122

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Nike Inc., average receivable collection period calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data
Receivables turnover	10.01	9.98	13.61	9.16	10.41	9.34
Short-term Activity Ratio (no. days)
Average receivable collection period¹	36	37	27	40	35	39
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Consumer Discretionary	—	19	18	18	18	18

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.01 = 36

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 deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Nike Inc., operating cycle calculation, comparison to benchmarks

No. days

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data
Average inventory processing period	122	102	127	95	94	97
Average receivable collection period	36	37	27	40	35	39
Short-term Activity Ratio
Operating cycle¹	158	139	154	135	129	136
Benchmarks
Operating Cycle, Industry
Consumer Discretionary	—	71	67	66	64	66

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 122 + 36 = 158

Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Nike Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Nike Inc., average payables payment period calculation, comparison to benchmarks

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data
Payables turnover	7.51	8.67	9.41	8.29	8.97	9.30
Short-term Activity Ratio (no. days)
Average payables payment period¹	49	42	39	44	41	39
Benchmarks (no. days)
Average Payables Payment Period, Industry
Consumer Discretionary	—	78	78	67	64	68

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.51 = 49

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 increased from 2020 to 2021 and from 2021 to 2022.

Nike Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Selected Financial Data
Average inventory processing period	122	102	127	95	94	97
Average receivable collection period	36	37	27	40	35	39
Average payables payment period	49	42	39	44	41	39
Short-term Activity Ratio
Cash conversion cycle¹	109	97	115	91	88	97
Benchmarks
Cash Conversion Cycle, Industry
Consumer Discretionary	—	-7	-11	-1	0	-2

Based on: 10-K (reporting date: 2022-05-31), 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).

¹ 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 122 + 36 – 49 = 109

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Nike Inc. (NYSE:NKE)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle