Presents this computation for Nike at the end of 2009 and 2008. The turnover of receivables decreased between 2008 and 2009 from 6.94 times per year to 6.62 times per year. For
Nike, this would be a negative trend.
NIKE, INC.
Accounts Receivable Turnover
|
Years Ended May 31, 2009 and 2008 |
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|
(In millions) |
2009 |
2008 |
|
|
Net sales (A) |
$19,176.10 |
$18,627.00 |
|
|
End of year receivables, net |
2,883.90 |
2,795.30 |
|
|
Beginning of year receivables, net |
2,795.30 |
2,494.70 |
|
|
Allowance for doubtful accounts: |
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|
End of 2009 |
$73.9 |
||
|
End of 2008 |
$41.7 |
||
|
End of 2007 |
$38.2 |
||
|
Ending gross receivables (net plus allowance) |
2,957.80 |
2,837.00 |
|
|
Beginning gross receivables (net plus allowance) |
2,837.00 |
2,532.90 |
|
|
Average gross receivables (B) |
2,897.40 |
2,685.00 |
|
|
Accounts receivables turnover (A ÷ B) |
6.62 times |
6.94 times |
|