3.5x.
NIKE’s inventory turnover hit its five-year low in May 2020 of 3.3x. NIKE’s inventory turnover decreased in 2020 (3.3x, -18.1%) and 2022 (3.3x, -4.3%) and increased in 2018 (4.0x, +3.0%), 2019 (4.0x, +0.4%) and 2021 (3.5x, +5.9%).
In this post
What is NIKE’s asset turnover ratio?
The asset turnover ratio is an indicator of the efficiency with which a company is deploying its assets. NIKE asset turnover for the three months ending May 31, 2022 was 0.30.
What is NIKE’s inventory?
NIKE inventory for 2022 was $8.42B, a 22.85% increase from 2021. NIKE inventory for 2021 was $6.854B, a 6.96% decline from 2020. NIKE inventory for 2020 was $7.367B, a 31.04% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Annual Inventory (Millions of US $) | |
|---|---|
| 2019 | $5,622 |
| 2018 | $5,261 |
| 2017 | $5,055 |
| 2016 | $4,838 |
What is a good inventory turnover ratio?
between 5 and 10
For most industries, the ideal inventory turnover ratio will be between 5 and 10, meaning the company will sell and restock inventory roughly every one to two months.
How does NIKE manage 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 is NIKE debt to equity ratio?
1 Nike’s capital structure has high equity capital relative to debt, with a debt-to-equity ratio of 0.66, though this figure rose sharply in 2020 due to store closures. 2 The company’s enterprise value grew rapidly in the five years leading up to 2021, driven almost entirely by the appreciating value of its equity.
What is NIKE’s average collection period?
In the case of Nike, it takes them 36 days on average to collect their receivables.
Why is NIKE so low on inventory?
As restrictions on venturing outdoors eased across the globe, consumer demand and the ensuing sales growth normalized to pre-pandemic levels quicker than expected. As a result, several businesses, including Nike, are having difficulty scaling up production to keep up with consumer spending.
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.
How does NIKE keep track of their inventory?
At the point of manufacture, many Nike products are tagged with a RAIN RFID tag chip, allowing them to be tracked through the rest of their journey, from factory to warehouse to shipment to store.
What would an inventory turnover of 2.0 indicate?
The outcome number is the total amount of days it will take for a business to run through its entire inventory. Consequently, a turnover rate of 2.0 means a company takes 182.5 days to clear its entire product inventory.
What is Apple’s inventory turnover ratio?
Current and historical inventory turnover ratio for Apple (AAPL) from 2010 to 2022. Inventory turnover ratio can be defined as a ratio showing how many times a company’s inventory is sold and replaced over a period. Apple inventory turnover ratio for the three months ending June 30, 2022 was 8.67.
How do you find inventory turnover ratio?
- The inventory turnover ratio can be calculated by dividing the cost of goods sold by the average inventory for a particular period.
- Inventory Turnover = Cost Of Goods Sold / ((Beginning Inventory + Ending Inventory) / 2)
- A low ratio could be an indication either of poor sales or overstocked inventory.
Does Nike hold inventory?
NIKE manages inventory to a 95% item fill rate for all replenishment products. Highly seasonal products generally have unpredictable demand patterns which lead to either stock outs or excess inventory. These imbalances in inventory occur without fully understanding the cost and benefit of holding the inventory.
How can Nike improve its supply chain?
To combat the current issue, Nike outlined its four changes amid supply chain issues:
- New Regional Service Centers. Increasing capacity, speed, and precision (sustainably)
- Automation and Technology.
- Sustainable Packaging.
- Career Development, Training, and Community Volunteer Opportunities.
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.
Does NIKE have a lot of debt?
NIKE long term debt for 2021 was $9.413B, a 0.07% increase from 2020. NIKE long term debt for 2020 was $9.406B, a 171.54% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Annual Long Term Debt (Millions of US $) | |
|---|---|
| 2020 | $9,406 |
| 2019 | $3,464 |
| 2018 | $3,468 |
| 2017 | $3,471 |
What is NIKE’s debt to equity 2021?
Compare NKE With Other Stocks
| NIKE Debt/Equity Ratio Historical Data | ||
|---|---|---|
| Date | Long Term Debt | Shareholder’s Equity |
| 2021-08-31 | $23.57B | $14.34B |
| 2021-05-31 | $24.97B | $12.77B |
| 2021-02-28 | $24.25B | $11.93B |
What is NIKE’s accounts receivable turnover?
Assets
| Fiscal year is June-May. All values USD Millions. | 2022 | 2019 |
|---|---|---|
| Accounts Receivable Growth | 4.57% | 22.13% |
| Accounts Receivable Turnover | 10.03 | 9.16 |
| Inventories | 8,420 | 5,622 |
| Finished Goods | 8,420 | 5,622 |
What is NIKE’s largest current liabilities?
NIKE total current liabilities for 2022 were $10.73B, a 10.92% increase from 2021. NIKE total current liabilities for 2021 were $9.674B, a 16.78% increase from 2020. NIKE total current liabilities for 2020 were $8.284B, a 5.31% increase from 2019.
What are NIKE’s current assets?
NIKE total current assets for 2022 were $28.213B, a 7.31% increase from 2021. NIKE total current assets for 2021 were $26.291B, a 27.9% increase from 2020. NIKE total current assets for 2020 were $20.556B, a 24.39% increase from 2019.