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GuruFocus has detected 2 Warning Signs with Nike Inc \$NKE.
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Nike Inc (NYSE:NKE)
Change In Receivables
\$-34 Mil (As of Nov. 2016)

Nike Inc's change in receivables for the quarter that ended in Nov. 2016 was \$-34 Mil. It means Nike Inc's accounts receivables declined by \$34 Mil from Aug. 2016 to Nov. 2016 .

Nike Inc's change in receivables for the fiscal year that ended in May. 2016 was \$60 Mil. It means Nike Inc's accounts receivables increased by \$60 Mil from May. 2015 to May. 2016 .

Nike Inc's accounts receivables for the quarter that ended in Nov. 2016 was \$3,478 Mil.

Days sales outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed. Nike Inc's days sales outstanding for the three months ended in Nov. 2016 was 38.80.

In Ben Grahams calculation of liquidation value, Apple Inc's accounts receivables are only considered to be worth 75% of book value. Nike Inc's liquidation value for the three months ended in Nov. 2016 was \$739 Mil.

Definition

Change In Accounts Receivable relative to the previous period. It is any increase or decrease in the cash a company is owed by its customers.

Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days sales outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

Nike Inc's Days Sales Outstanding for the quarter that ended in Nov. 2016 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 3478 / 8180 * 91 = 38.80

2. In Ben Grahams calculation of liquidation value, Nike Inc's accounts receivable are only considered to be worth 75% of book value:

Nike Inc's liquidation value for the quarter that ended in Nov. 2016 is calculated as:

 Liquidation Value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 5943 - 10329 + 0.75 * 3478 + 0.5 * 5033 = 739

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Nike Inc Annual Data

 May07 May08 May09 May10 May11 May12 May13 May14 May15 May16 ChangeInReceivables -40 -118 -238 182 -273 -323 142 -298 -216 60

Nike Inc Quarterly Data

 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 ChangeInReceivables 26 68 -107 52 -191 15 184 -284 -34 0
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