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, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Turnover Ratios
Inventory turnover	3.59	2.87	3.85	3.89	3.77	3.60
Receivables turnover	9.98	13.61	9.16	10.41	9.34	9.99
Payables turnover	8.67	9.41	8.29	8.97	9.30	7.94
Working capital turnover	2.68	3.05	4.52	4.00	3.24	3.35
Average No. Days
Average inventory processing period	102	127	95	94	97	101
Add: Average receivable collection period	37	27	40	35	39	37
Operating cycle	139	154	135	129	136	138
Less: Average payables payment period	42	39	44	41	39	46
Cash conversion cycle	97	115	91	88	97	92

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.

Nike Inc., inventory turnover calculation, comparison to benchmarks

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data (US$ in millions)
Cost of sales	24,576	21,162	21,643	20,441	19,038	17,405
Inventories	6,854	7,367	5,622	5,261	5,055	4,838
Short-term Activity Ratio
Inventory turnover¹	3.59	2.87	3.85	3.89	3.77	3.60
Benchmarks
Inventory Turnover, Industry
Consumer Discretionary	—	7.25	7.32	7.62	7.31	7.52

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
= 24,576 ÷ 6,854 = 3.59

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.

Nike Inc., receivables turnover calculation, comparison to benchmarks

	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
Accounts receivable, net	4,463	2,749	4,272	3,498	3,677	3,241
Short-term Activity Ratio
Receivables turnover¹	9.98	13.61	9.16	10.41	9.34	9.99
Benchmarks
Receivables Turnover, Industry
Consumer Discretionary	—	20.73	20.31	20.92	20.66	21.12

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
= 44,538 ÷ 4,463 = 9.98

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.

Nike Inc., payables turnover calculation, comparison to benchmarks

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data (US$ in millions)
Cost of sales	24,576	21,162	21,643	20,441	19,038	17,405
Accounts payable	2,836	2,248	2,612	2,279	2,048	2,191
Short-term Activity Ratio
Payables turnover¹	8.67	9.41	8.29	8.97	9.30	7.94
Benchmarks
Payables Turnover, Industry
Consumer Discretionary	—	4.70	5.35	5.58	5.28	5.65

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
= 24,576 ÷ 2,836 = 8.67

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.

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

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data (US$ in millions)
Current assets	26,291	20,556	16,525	15,134	16,061	15,025
Less: Current liabilities	9,674	8,284	7,866	6,040	5,474	5,358
Working capital	16,617	12,272	8,659	9,094	10,587	9,667

Revenues	44,538	37,403	39,117	36,397	34,350	32,376
Short-term Activity Ratio
Working capital turnover¹	2.68	3.05	4.52	4.00	3.24	3.35
Benchmarks
Working Capital Turnover, Industry
Consumer Discretionary	—	16.26	31.30	19.91	20.39	22.87

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
= 44,538 ÷ 16,617 = 2.68

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.

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

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data
Inventory turnover	3.59	2.87	3.85	3.89	3.77	3.60
Short-term Activity Ratio (no. days)
Average inventory processing period¹	102	127	95	94	97	101
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Consumer Discretionary	—	50	50	48	50	49

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 ÷ 3.59 = 102

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.

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

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data
Receivables turnover	9.98	13.61	9.16	10.41	9.34	9.99
Short-term Activity Ratio (no. days)
Average receivable collection period¹	37	27	40	35	39	37
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Consumer Discretionary	—	18	18	17	18	17

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 ÷ 9.98 = 37

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.

Nike Inc., operating cycle calculation, comparison to benchmarks

No. days

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data
Average inventory processing period	102	127	95	94	97	101
Average receivable collection period	37	27	40	35	39	37
Short-term Activity Ratio
Operating cycle¹	139	154	135	129	136	138
Benchmarks
Operating Cycle, Industry
Consumer Discretionary	—	68	68	65	68	66

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
= 102 + 37 = 139

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.

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

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data
Payables turnover	8.67	9.41	8.29	8.97	9.30	7.94
Short-term Activity Ratio (no. days)
Average payables payment period¹	42	39	44	41	39	46
Benchmarks (no. days)
Average Payables Payment Period, Industry
Consumer Discretionary	—	78	68	65	69	65

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 ÷ 8.67 = 42

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.

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

No. days

	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016
Selected Financial Data
Average inventory processing period	102	127	95	94	97	101
Average receivable collection period	37	27	40	35	39	37
Average payables payment period	42	39	44	41	39	46
Short-term Activity Ratio
Cash conversion cycle¹	97	115	91	88	97	92
Benchmarks
Cash Conversion Cycle, Industry
Consumer Discretionary	—	-10	0	0	-1	1

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
= 102 + 37 – 42 = 97

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.

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