Understanding Nike Current Ratio in the Market

Nike's current ratio is a measure of its liquidity, calculated by dividing its current assets by its current liabilities. This ratio gives investors an idea of the company's ability to pay off its short-term debts.

Nike's current ratio has fluctuated over the years, with a high of 2.24 in 2019 and a low of 1.43 in 2016. The company's current ratio is higher than the industry average, indicating a strong ability to meet its short-term obligations.

Nike's current assets include cash, accounts receivable, and inventory, which totalled $24.4 billion in 2020. Its current liabilities include accounts payable and short-term debt, which totalled $10.3 billion in 2020.

Nike's Current Ratio has performed relatively well in the past, with a mean historical Current Ratio of 2.58 over the last ten years.

The current Current Ratio of 2.22 has changed by 8.50% with respect to the historical average. This indicates a slight decrease in liquidity compared to the past decade.

Nike's Current Ratio was at its highest in the August 2021 quarter at 3.19, and at its lowest in the February 2020 quarter at 1.90.

The minimum annual Current Ratio is 2.10, which shows that Nike's liquidity has not been significantly compromised even in the most challenging periods.

Here's a comparison of Nike's Current Ratio with its peers:

Nike's Current Ratio is greater than several of its peers, including Steven Madden, Ltd. (2.09), Crocs, Inc. (1.18), and Designer Brands Inc. (1.41).

NIKE, Inc.'s Current Ratio is less than Deckers Outdoor Corporation's 3.17, which is the highest among the companies listed.

The Current Ratio is a measure of a company's ability to pay its short-term debts, and NIKE's ratio is less than several of its peers.

Let's take a look at how NIKE's Current Ratio compares to its competitors:

Nike's current ratio is less than Deckers Outdoor Corporation's 3.17, indicating that Deckers has a more stable financial position.

Nike's current ratio is also less than On Holding AG's 2.91, suggesting that On Holding AG has a stronger ability to meet its short-term obligations.

However, Nike's current ratio is greater than Skechers U.S.A., Inc.'s 1.96, indicating that Nike is more financially stable than Skechers.

In fact, Nike's current ratio is greater than Steven Madden, Ltd.'s 2.09, Crocs, Inc.'s 1.18, Designer Brands Inc.'s 1.41, and adidas AG's 1.32.

Here's a comparison of the current ratios of Nike and its peers:

This comparison highlights the relative financial stability of Nike compared to its peers.

Nike Inc.'s current ratio improved from 2022 to 2023, but then deteriorated significantly from 2023 to 2024.

The current ratio is a liquidity ratio calculated as current assets divided by current liabilities. In 2024, Nike Inc.'s current ratio was 2.40, calculated as 25,382 ÷ 10,593.

Nike Inc.'s current ratio has fluctuated over the years, ranging from 2.10 in 2020 to 2.72 in 2021 and 2023. This suggests that the company's ability to pay its short-term debts has been relatively stable over the past few years.

Here's a comparison of Nike Inc.'s current ratio with its competitors and industry benchmarks:

The average historical Current Ratio of NIKE, Inc. over the last ten years is 2.58. This is a significant number to keep in mind when evaluating the company's financial performance.

The mean historical Current Ratio has been steadily around this number, with some fluctuations. For example, in the August 2021 quarter, it reached its highest point at 3.19.

A low point in the Current Ratio was observed in the February 2020 quarter at 1.90. This highlights the importance of monitoring the company's liquidity over time.

Here's a breakdown of the average and historical data:

The maximum Annual Increase in the Current Ratio was 18.12%, observed in 2020. This significant increase highlights the importance of monitoring the company's liquidity over time.