Nike (XSGO:NKE) Debt-to-EBITDA : 1.88 (As of Feb. 2024)

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What is Nike Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Nike's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $480 Mil. Nike's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was $11,621 Mil. Nike's annualized EBITDA for the quarter that ended in Feb. 2024 was $6,424 Mil. Nike's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 was 1.88.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Nike's Debt-to-EBITDA or its related term are showing as below:

XSGO:NKE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.26 Med: 0.71 Max: 3.07
Current: 1.76

During the past 13 years, the highest Debt-to-EBITDA Ratio of Nike was 3.07. The lowest was 0.26. And the median was 0.71.

XSGO:NKE's Debt-to-EBITDA is ranked better than
63.91% of 798 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.84 vs XSGO:NKE: 1.76

Nike Debt-to-EBITDA Historical Data

The historical data trend for Nike's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nike Debt-to-EBITDA Chart

Nike Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Debt-to-EBITDA

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0.63

3.07

1.66

1.68

1.79

Nike Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Debt-to-EBITDA	Get a 7-Day Free Trial															2.02	2.08	1.70	1.52	1.88

Competitive Comparison of Nike's Debt-to-EBITDA

For the Footwear & Accessories subindustry, Nike's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nike's Debt-to-EBITDA Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Nike's Debt-to-EBITDA falls into.

Nike Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Nike's Debt-to-EBITDA for the fiscal year that ended in May. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(431	+	11713)	/	6774
	=	1.79

Nike's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(480	+	11621)	/	6424
	=	1.88

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Feb. 2024) EBITDA data.

Nike (XSGO:NKE) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Nike Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Nike's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Nike (XSGO:NKE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Nike Inc (XSGO:NKE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

NKE:USA NKE:Peru NKE:Mexico NKE_KZ:Kazakhstan 1NKE:Italy NKEd:UK 0QZ6:UK NKE:Germany NKE:Canada NIKE34:Brazil NKE:Austria NKE:Argentina

Address

One Bowerman Drive, Beaverton, OR, USA, 97005-6453

Website

https://www.nike.com

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.