36 days.
So, Nike collects their receivables, on average, in 36 days. Some people take a little longer than that, some people take shorter than that. But on average, it’s 36 days.
In this post
What is Nike’s average inventory?
NIKE’s latest twelve months inventory turnover is 3.3x. NIKE’s inventory turnover for fiscal years ending May 2018 to 2022 averaged 3.6x. NIKE’s operated at median inventory turnover of 3.5x from fiscal years ending May 2018 to 2022.
What is the industry average collection period?
Most companies collect accounts receivable within 30 days so 31.13 days is actually a good sign. If the company had a longer average collection period, they would have to revisit their credit collection policies and the credit terms provided to their customers.
How do you calculate collection period?
The average collection period is calculated by dividing a company’s yearly accounts receivable balance by its yearly total net sales; this number is then multiplied by 365 to generate a number in days.
What is Nike’s quick ratio?
Nike has a quick ratio of 2.18. It generally indicates good short-term financial strength.
How does NIKE keep track of inventory?
Nike is implementing RFID tracking in “nearly all” of its non-licensed apparel and footwear —“hundreds of millions of items” according to CEO Mark Parker. The brand is also using QR codes to track some inventory. ″ RFID gives us the most complete view of our inventory that we have ever had.
What are NIKE’s long term assets?
NIKE total long-term assets for 2022 were $12.108B, a 5.76% increase from 2021. NIKE total long-term assets for 2021 were $11.449B, a 6.15% increase from 2020. NIKE total long-term assets for 2020 were $10.786B, a 49.97% increase from 2019.
What does a high average collection period indicate?
High collection period: A high collection period indicates companies are collecting payments at a slower rate. This isn’t necessarily reflective of the company’s actions, however. A high collection period could mean customers are taking their time to pay their bills.
Is higher collection period Good?
If the average is low, it’s good. You collect accounts relatively quickly. If the number is on the high side, you could be having trouble collecting your accounts. A high average collection period ratio could indicate trouble with your cash flows.
What does an average collection period of 30 days indicate for a company?
An average collection period of 30 days for a company indicates that customers purchasing products or services on credit take around 30 days to clear pending accounts receivable.
Is average collection period the same as days sales outstanding?
The days sales outstanding calculation, also called the average collection period or days’ sales in receivables, measures the number of days it takes a company to collect cash from its credit sales. This calculation shows the liquidity and efficiency of a company’s collections department.
How do you increase average collection period?
6 ways to reduce your creditor / debtor days
- NEGOTIATE PAYMENT TERMS WITH YOUR SUPPLIERS.
- OFFER DISCOUNTS FOR EARLY REPAYMENT.
- CHANGE PAYMENT TERMS.
- AUTOMATE CREDIT CONTROL, SET UP CHASERS.
- EXTERNAL CREDIT CONTROL.
- IMPROVE STOCK CONTROL.
How do you calculate the average collection period quizlet?
The average collection period is computed by dividing the number of days in the year by the accounts receivable turnover. The average collection period = 365/7 = 52 days.
What is NIKE’s quick ratio for 2021?
Compare NKE With Other Stocks
| NIKE Quick Ratio Historical Data | ||
|---|---|---|
| Date | Current Assets – Inventory | Quick Ratio |
| 2021-11-30 | $20.67B | 2.33 |
| 2021-08-31 | $19.69B | 2.38 |
| 2021-05-31 | $19.44B | 2.01 |
What is NIKE’s liquidity?
Current and historical current ratio for NIKE (NKE) from 2010 to 2022. Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. NIKE current ratio for the three months ending May 31, 2022 was 2.63.
Does NIKE have good liquidity?
With a market valuation of US$123.0b, NKE is a safe haven in times of market uncertainty due to its strong balance sheet. In times of low liquidity in the market, these firms won’t be left high and dry. They are also relatively unaffected by increases in interest rates.
Why did Nike have inventory problems?
By late 2000, Nike had a major inventory problem on its hands. Analysts said that, among several other reasons, the most important reason for the problem was that Nike and i2 did not communicate well with each other. Both companies were also hasty in taking steps and did not bother to test the software rigorously.
What is Nike’s sourcing strategy?
What is it that makes Nike’s supply chain so unique and so effective? The key principles behind Nike’s supply chain are outsourcing and diversification. Nike contracts 100% of its manufacturing for footwear and apparel out to independent suppliers. It was one of the earliest multinationals to adopt this approach.
Where does Nike get their raw materials from?
Nike gets most of its cotton from suppliers in China, India, Turkey, and the United state Of America. Nikes plan is to have at least 10% of organic cotton in all of their appeal that contains cotton by 2015. Synthetic leather is also used often in nike products.
What is NIKE’s largest asset?
NIKE total assets for 2022 were $40.321B, a 6.84% increase from 2021. NIKE total assets for 2021 were $37.74B, a 20.41% increase from 2020. NIKE total assets for 2020 were $31.342B, a 32.15% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Quarterly Total Assets (Millions of US $) | |
|---|---|
| 2009-02-28 | $12,256 |
Is NIKE highly leveraged?
NIKE’s financial leverage last quarter was 2.6x. NIKE’s financial leverage for fiscal years ending May 2018 to 2022 averaged 2.9x. NIKE’s operated at median financial leverage of 2.6x from fiscal years ending May 2018 to 2022. Looking back at the last five years, NIKE’s financial leverage peaked in May 2020 at 3.9x.