Nike Inc. (NYSE:NKE)

Inventory Turnover

The inventory turnover ratio fluctuated over the reported periods, initially rising from 3.17 to a peak of around 3.85 between mid-2020 and late 2021. A notable decline followed in 2022 reaching lows near 2.67, before partially recovering and stabilizing slightly above 3.3 through mid-2025. This suggests a period of slower inventory movement during 2022, with improved efficiency thereafter.

Receivables Turnover

The receivables turnover ratio showed considerable variability, rising from approximately 9.79 to a high of 12.4 by early 2023. However, it subsequently experienced a decline, dropping back below 10 by mid-2025. This indicates periods of both improved and weakened collections efficiency, with a recent trend toward slower collection times.

Payables Turnover

The payables turnover exhibited highly variable movements, ranging from a high around 12.28 in early 2024 down to lows near 7.15 by mid-2025. The initial decline prior to 2022 was followed by a recovery peaking in early 2024, then a noticeable slowdown in payments in more recent quarters. This pattern suggests fluctuating payment pacing, affecting the company's cash flow management.

Working Capital Turnover

There was a consistent upward trend in working capital turnover, improving from 2.8 in mid-2020 to around 3.62 by mid-2025. This steady increase indicates enhanced efficiency in the use of working capital to generate revenues over the period.

Average Inventory Processing Period

The average inventory processing period generally lengthened during 2021 and 2022, rising from under 100 days to peaks above 130 days, reflecting slower inventory turnover in that timeframe. Subsequently, it shortened again to about 96 days by mid-2024 before modestly increasing toward the latest period. This mirrors the inventory turnover ratio trends and points to seasonal or operational influences.

Average Receivable Collection Period

The collection period was relatively stable between 29 and 40 days, with some cyclical patterns. It showed improvement to as low as 29 days in early 2023 but lengthened again in later periods, indicating variability in customer payment patterns and credit policy impacts.

Operating Cycle

The operating cycle fluctuated within a range of around 125 to 175 days, peaking notably in 2022. This cycle shortened between late 2020 and mid-2021, indicating quicker cash conversion processes, but the subsequent increase suggests a temporary elongation of the overall operating timeline before partial improvement in recent quarters.

Average Payables Payment Period

The payables payment period increased from roughly 31 days to over 50 days in mid-2025, signaling that payments to suppliers have been increasingly deferred. This extended payment period can help preserve cash but may affect supplier relationships.

Cash Conversion Cycle

The cash conversion cycle generally trended downward from approximately 118 days in mid-2020 to around 90 days in mid-2024, before slightly rising again toward mid-2025. This overall improvement indicates more efficient management of the time between cash outflow and inflow, despite some fluctuations.

The analysis of the financial data reveals several noteworthy trends in cost of sales, inventories, and inventory turnover ratios over the examined periods.

Cost of Sales

The cost of sales demonstrates fluctuations across the quarters. Initially, it increased from 5,853 million US dollars to a peak of 7,604 million by November 2022. Following this peak, there is a general decline observed, with values dropping to approximately 6,332 million by August 2024. The variations suggest periods of rising production or procurement costs up to late 2022, followed by a reduction or improved cost management thereafter.

Inventories

Inventories exhibit a generally upward trend from August 2020 to August 2022, increasing from 6,705 million US dollars to a high of 9,662 million. After this peak, inventories begin to decrease, reaching around 7,253 million by May 2024. Subsequently, there is some volatility, but levels remain moderately high compared to earlier periods, ending near 8,114 million in August 2025. This pattern could indicate stock accumulation in anticipation of demand, followed by drawdowns or adjustments in inventory policies.

Inventory Turnover Ratio

The inventory turnover ratio shows considerable variation corresponding with inventory and cost of sales trends. Initially, the ratio increases from 3.17 to a peak of 3.85 in November 2021, indicating increasing efficiency in inventory usage relative to sales. However, starting in early 2022, the ratio declines to a low of 2.67 by August 2022, implying a slower turnover or increased holding periods. Following this trough, the turnover ratio recovers, stabilizing around the 3.4 to 3.7 range in subsequent periods, suggesting a return toward more effective inventory management.

In summary, the data reflects cyclical fluctuations in cost of sales and inventory management over the examined timeframe. The rise and subsequent fall in cost of sales and inventories suggest adaptive operational or market conditions, while the inventory turnover ratio highlights shifts in efficiency that align with these changes. Overall, the patterns may indicate strategic responses to evolving demand and supply chain factors influencing purchasing, production, and inventory holding policies.

The analysis of the quarterly financial data reveals several key trends and insights related to revenues, accounts receivable, and receivables turnover ratios over the observed periods.

Revenues

The revenue figures demonstrate fluctuations throughout the quarters, with a general pattern of periodic increases followed by declines. Starting from approximately 10.6 billion USD in August 2020, revenues peak multiple times, notably around May 2021 and November 2022, reaching values above 13 billion USD. However, there is no clear long-term upward or downward trend, as revenues decrease in some subsequent quarters, such as early 2023 and mid-2024, indicating variability possibly influenced by seasonal factors or market conditions.

Accounts Receivable, Net

The net accounts receivable values also fluctuate, generally ranging between approximately 3.6 billion and 5.4 billion USD. Noticeable increases occur around August 2022 and November 2022, coinciding with higher revenue periods. This indicates a potential buildup of receivables during high sales periods. However, accounts receivable consistently fall after peaks, suggesting regular collection or write-offs. The data reflects a degree of sensitivity of receivable balances to changes in revenue.

Receivables Turnover Ratio

The receivables turnover ratio exhibits variation throughout the quarters, with values mostly between 9.0 and 12.5. Higher turnover ratios, observed in the range of 11 to 12.5, generally correspond with quarters following revenue increases, indicating more efficient collection of receivables. Periods with turnover below 10, including some quarters in 2022 and 2024, suggest slower receivables collection or potentially rising outstanding receivables relative to sales. Overall, the turnover ratio indicates fluctuations in credit and collection efficiency that tend to correlate inversely with accounts receivable balances.

In summary, the financial data displays a cyclical pattern in revenues with seasonality likely impacting sales and related cash flows. Accounts receivable levels and turnover ratios adjust correspondingly, reflecting changes in collection efficiency and credit management. These observations highlight the importance of closely monitoring working capital components to maintain liquidity and operational stability.

The financial data reflects significant fluctuations in cost of sales, accounts payable, and payables turnover ratios over multiple quarters, highlighting dynamic operational and payment cycle patterns.

Cost of Sales

The cost of sales exhibits variability with several alternating increases and decreases. Initially, it rises from 5,853 million US dollars to a peak of 6,689 million by May 2021, followed by a downward shift to around 5,804 million by February 2022. Subsequently, it climbs again, reaching a local maximum of 7,604 million in November 2022. Post this peak, a general decline trend emerges through early 2025, with values ending near 6,777 million US dollars. This suggests that the company experiences cyclical fluctuations in production or procurement costs but tends to moderate expenses after peak periods.

Accounts Payable

Accounts payable demonstrates a generally upward trajectory with intermittent fluctuations. Starting at 1,983 million US dollars in August 2020, it rises substantially towards mid-2022, reaching figures above 3,300 million. Although there are brief declines, the overall trend continues upwards, culminating near 3,772 million by August 2025. This upward trend may indicate an increase in credit usage from suppliers or extended payment terms over the observed periods.

Payables Turnover Ratio

The payables turnover ratio shows marked variation, indicating changes in how quickly the company is settling its payables. Early values trend downward from 10.7 to approximately 8.67 by May 2021, implying slower payments. A sharp rebound to 11.84 in August 2021 is followed by another decline, reaching lows around 7.15 by August 2025. These fluctuations suggest shifting payment policies or cash flow management strategies, with periods of both faster and slower payment cycles. Lower turnover ratios in recent periods might reflect more extended credit terms or delays in payments.

The working capital of the company exhibits a fluctuating but generally declining trend over the observed periods. Starting from a value of 13,318 million US dollars in August 2020, working capital initially increases, reaching a peak around November 2021 at 18,320 million US dollars. Subsequently, it demonstrates a consistent decline, dropping to approximately 12,987 million US dollars by August 2025. This trend indicates a reduction in short-term liquidity and possibly more efficient use of current assets and liabilities in later periods.

Revenues present a cyclical pattern with some volatility across the quarters. Initial revenue was around 10,594 million US dollars in August 2020, increasing and peaking periodically, such as in May 2021 at 12,344 million US dollars and again in November 2022 reaching 13,315 million US dollars. Following each peak, revenues tend to experience a decrease but then recover in subsequent periods. Toward the end of the timeline, revenues seem to stabilize around the 11,000 to 12,000 million US dollar range, reflecting periodic fluctuations but no strong sustained upward or downward trend.

The working capital turnover ratio shows a clear, continuous upward trend over the entire period. Beginning at 2.8 in August 2020, it slightly decreases in subsequent periods but then steadily rises, reaching values above 3.5 from mid-2023 onwards and peaking around 3.62 in August 2025. This increasing ratio suggests improved efficiency in utilizing working capital to generate revenues, implying enhanced operational performance with more output generated per unit of working capital employed.

Overall, the data reflect a scenario in which the company is becoming increasingly efficient with its working capital despite a gradual reduction in the absolute working capital amount. Revenues remain somewhat variable but generally moderate within a stable range. The improvement in the working capital turnover ratio is a key positive indicator of operational management focusing on maximizing returns from the available working capital resources.

Working Capital

Peaked at 18,320 million US dollars in November 2021, then steadily declined to 12,987 million US dollars by August 2025.

Revenues

Show cyclical fluctuations with peaks around May 2021 and November 2022; mostly stabilizing near 11,000-12,000 million US dollars towards the end.

Working Capital Turnover Ratio

Improved consistently from about 2.8 to approximately 3.6, indicating greater efficiency in generating revenues from working capital.

The analysis of inventory management metrics over multiple quarters reveals notable fluctuations and trends indicative of operational adjustments and inventory control strategies.

Inventory Turnover Ratio

The inventory turnover ratio exhibits variability across the observed periods. Initially, the ratio started at 3.17 and experienced an upward trend reaching a peak near 3.85. Subsequently, it declined to values as low as 2.67 before gradually increasing again to approximately 3.79. The latest data points suggest slight fluctuations around 3.3 to 3.5. This pattern indicates periods of accelerated inventory movement followed by phases of slower turnover, reflecting changing sales dynamics or inventory replenishment practices.

Average Inventory Processing Period (Days)

The average inventory processing period inversely mirrors the turnover ratio trends. It began at around 115 days and decreased to nearly 95 days, corresponding with the rise in turnover ratio. A subsequent increase up to approximately 137 days occurred coinciding with the turnover ratio trough, indicating slower inventory movement. More recent quarters display a moderate range generally between 96 and 110 days, suggesting a normalization or stabilization of inventory holding periods after previous volatility.

Overall, the data demonstrates cyclical variations in inventory efficiency, with phases of improved turnover efficiency followed by intervals of extended inventory holding. This cyclical behavior may be attributed to seasonal demand fluctuations, supply chain adjustments, or strategic inventory management decisions aimed at balancing stock availability with turnover optimization.

Receivables Turnover Ratio

The receivables turnover ratio demonstrates fluctuations over the analyzed periods. Initially, it rose from 9.79 to a peak of 12.36, indicating an improvement in the efficiency of receivables collection. After this peak, there was a decline, with values fluctuating mostly between 9.0 and 12.4. Notably, the highest turnover ratio values occurred in late 2021 and early 2023, suggesting periods of stronger credit management. Towards the latest periods, the ratio showed a decreasing trend, moving down from 11.6 in mid-2024 to 9.36 in mid-2025, indicating a reduction in the speed of accounts receivable collections.

Average Receivable Collection Period (Days)

The average collection period exhibited an inverse pattern compared to the receivables turnover ratio, as expected. It started at 37 days and decreased to a low of 29 days early in 2023, coinciding with the peak receivables turnover ratio. Subsequently, the collection period lengthened again, reaching a maximum of 40 days at several points, including late 2022 and early 2025. The overall trend shows variability in collection days, with periods of improved efficiency followed by some elongation. Towards the end of the timeline, the collection days are higher relative to the earlier peak efficiency phase, indicating some challenges in maintaining shorter collection cycles.

Summary of Trends and Insights

The data reveals cyclical patterns in the management of receivables, with phases of improved turnover and shorter collection periods generally followed by phases of decline in these metrics. Periods around late 2021 and early 2023 demonstrated optimal receivables management with the highest turnover ratios and correspondingly lower collection days. However, subsequent periods saw a regression, with turnover ratios declining and collection days increasing. This suggests variability in credit control effectiveness, potentially influenced by external factors such as market conditions or internal credit policies. The recent downward trend in turnover alongside longer collection periods may warrant closer attention to credit management strategies to ensure consistent cash flow and reduce credit risk.

The analysis of the financial metrics over the given periods reveals several notable trends relating to inventory management, receivable collection, and overall operating cycle durations.

Average Inventory Processing Period

This metric exhibits variability throughout the observed timeframe. Initially, there is a decrease from 115 days in August 2020 to a low of 95 days in November 2021, indicating an improvement in inventory turnover. However, after this period, the inventory processing period increases, peaking at 137 days in August 2022, which suggests a slowdown in inventory movement. Subsequently, the period declines again to around 96 days by May 2024, showing renewed efficiency in inventory handling. Towards the latter dates, the period shows moderate fluctuations between 102 and 110 days, indicating some instability in inventory processing times but without a consistent upward or downward trend.

Average Receivable Collection Period

The collection period generally hovers around the mid-30s to low 40s in days. It starts at 37 days in August 2020, then declines slightly, reaching a low of 29 days by February 2023, which points to more efficient receivables management. Following this improvement, the collection period fluctuates, with occasional increases back to around 40 days, particularly in August 2022 and February 2025. The variability indicates occasional challenges in collecting receivables promptly, but overall the period remains relatively stable without a significant long-term trend upward or downward.

Operating Cycle

The operating cycle, encompassing inventory and receivables periods, reflects the cumulative effect of the individual components. It decreases from 152 days in August 2020 to a minimum of 125 days in November 2021, suggesting improved operational efficiency. However, there is a noticeable increase afterward, reaching a peak of 175 days in August 2022, coinciding with the highest inventory processing period in the same month, which results in a lengthier cash conversion cycle. Thereafter, the operating cycle shortens again to around 127 days by May 2024. In the final periods, the cycle shows moderate fluctuations between 136 and 149 days, indicating some variation in working capital efficiency but no consistent directional trend.

Overall, the data indicates periods of improved operational efficiency, particularly in late 2021 and early 2023, with shorter inventory and receivables durations leading to a reduced operating cycle. Nonetheless, intermittent increases in inventory days, especially in mid to late 2022, have extended the operating cycle temporarily. Receivables collection shows moderate variability but remains controlled within a narrow range, indicating relatively stable credit management practices. The trends suggest ongoing adjustments in inventory strategy and receivables management with a tendency towards maintaining an efficient cash conversion process despite periodic fluctuations.

The analysis of the payables turnover ratio and the average payables payment period over the given quarterly periods reveals notable fluctuations and trends in the company's management of its accounts payable.

Payables Turnover Ratio

The payables turnover ratio shows variability with a general pattern of decline followed by recovery and subsequent decline again. Initially, the ratio decreased from around 10.7 in August 2020 to a low near 7.51 in May 2022. This downward movement suggests that the company was taking longer to pay its suppliers or that purchases on credit terms increased relative to payments. After reaching this low, the ratio increased again, peaking at approximately 12.28 in February 2024, indicating a period where payables were settled more quickly. However, after this peak, the turnover ratio declined once again toward the end of the observed period, dropping to about 7.15 by August 2025. This final decline may imply a trend toward longer payment periods or an increase in outstanding payables.

Average Payables Payment Period

The average payables payment period, expressed in days, complements the turnover ratio by quantifying the duration taken to pay suppliers. The data indicates an inverse relationship with the payables turnover ratio, as expected. The period lengthened from 34 days in August 2020 up to a peak of 49 days in May 2022, suggesting slower payments and extended creditor financing during that timeframe. Subsequently, the payment period shortened to as low as 30 days by February 2024, aligning with the peak in the turnover ratio. Toward the end of the data, the payment period extended again, reaching up to 51 days in August 2025, consistent with the decline in turnover ratio, highlighting a return to longer payment durations.

Overall, the financial indicators reflect cycles in the company's payables management approach, alternating between quicker and slower payment strategies. The periods of extended payment may offer cash flow benefits or reflect operational challenges, while the intervals of faster payment suggest improved liquidity or changed supplier negotiations. Monitoring such trends is essential to assess the company's working capital management and its impact on supplier relationships and financial flexibility.

The analysis of the quarterly financial data reveals several notable trends related to inventory, receivables, payables, and the overall cash conversion cycle.

Average Inventory Processing Period

This metric shows variability across the periods, with values generally ranging from the mid-90s to the high 130s (days). Initially, it decreased from 115 days in August 2020 to a low of 95 days by November 2021. Subsequently, there was a pronounced increase reaching a peak of 137 days in August 2022, followed by a general decline towards the 100-day range in 2023 and 2024, with slight upward fluctuations thereafter. This pattern indicates some operational challenges or inventory management adjustments around mid-2022, followed by efforts to improve inventory turnover.

Average Receivable Collection Period

The receivable collection period exhibits moderate fluctuations, generally oscillating between 29 and 40 days. The period slightly decreased from 37 days in August 2020 to a low in the late 20s and low 30s during 2023, suggesting improved receivables management at that time. However, spikes to around 38-40 days recurred in several quarters, indicating occasional delays or leniency in collection. Overall, the trend suggests ongoing challenges in maintaining consistent receivables turnover speed.

Average Payables Payment Period

This period shows notable variability, moving from low 30s to high 40s and occasionally reaching 50 days toward the later quarters. The data indicates an initial gradual increase from 34 days in August 2020 to around 41-49 days in 2021-2022, implying the company extended its payables duration likely to optimize cash outflows. The period then oscillated between 34 and 44 days through 2023 and into 2024, with an uptick toward 51 days in August 2025, which may reflect a strategic approach to managing supplier payments to enhance liquidity.

Cash Conversion Cycle

The cash conversion cycle (CCC), an aggregate measure of working capital efficiency, demonstrates considerable fluctuations ranging roughly from 84 to 127 days. The CCC declined from 118 days in August 2020 to a low of 84 days in November 2021, indicating improved efficiency in converting investments in inventory and receivables into cash. This improvement was short-lived as the CCC increased markedly to 127 days in August and November 2022, corresponding with the spike in inventory processing period. Afterward, there was a gradual reduction to around 90-100 days in 2023 and 2024, suggesting renewed efforts to optimize working capital. Minor fluctuations persisted, but the overall trend reflects attempts at balancing inventory, receivables, and payables to maintain favorable cash flow dynamics.

In summary, the financial data reveals cycles of improvement and deterioration in working capital management, particularly influenced by inventory processing and receivables collection. The payables payment period extended over time, possibly as a strategic measure to support cash flow. The cash conversion cycle's movements underscore a dynamic approach to operational financing, with periods of both enhanced and diminished efficiency.