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Nike Inc  (NYSE:NKE) Total Inventories: $5,211 Mil (As of Aug. 2017)

Nike Inc's total inventories for the quarter that ended in Aug. 2017 was $5,211 Mil. Nike Inc's average total inventories from the quarter that ended in May. 2017 to the quarter that ended in Aug. 2017 was $5,133 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Nike Inc's liquidation value for the quarter that ended in Aug. 2017 was $-626 Mil.

Inventory can be measured by days sales of inventory (DSI). Nike Inc's days sales of inventory (DSI) for the three months ended in Aug. 2017 was 51.64.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Nike Inc's Days Inventory for the three months ended in Aug. 2017 was 91.70.

Inventory Turnover measures how fast the company turns over its inventory within a year. Nike Inc's Inventory Turnover for the quarter that ended in Aug. 2017 was 1.00.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Nike Inc's Inventory-to-Revenue for the quarter that ended in Aug. 2017 was 0.57.


Historical Data

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

* Premium members only.

Nike Inc Annual Data

May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3,484.00 3,947.00 4,337.00 4,838.00 5,055.00

Nike Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4,896.00 5,033.00 4,932.00 5,055.00 5,211.00

Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value.

Nike Inc's liquidation value for the quarter that ended in Aug. 2017 is

Liquidation value (Q: Aug. 2017 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=5519-11654+0.75 * 3871+0.5 * 5211
=-626

2. Inventory can be measured by Days Sales of Inventory (DSI).

Nike Inc's Days Sales of Inventory for the three months ended in Aug. 2017 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Aug. 2017 )/Revenue (Q: Aug. 2017 )*Days in Period
=5133/9070*365 / 4
=51.64

3. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Nike Inc's Days Inventory for the three months ended in Aug. 2017 is calculated as:

Days Inventory=Total Inventories (Q: Aug. 2017 )/Cost of Goods Sold (Q: Aug. 2017 )*Days in Period
=5133/5108*365 / 4
=91.70

4. Inventory Turnover measures how fast the company turns over its inventory within a year.

Nike Inc's Inventory Turnover for the quarter that ended in Aug. 2017 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Aug. 2017 ) / Total Inventories (Q: Aug. 2017 )
=5108 / 5133
=1.00

5. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Nike Inc's Inventory to Revenue for the quarter that ended in Aug. 2017 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Aug. 2017 ) / Revenue (Q: Aug. 2017 )
=5133 / 9070
=0.57

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


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


Related Terms


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