Nike Inc (NKE)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.56% | 43.52% | 45.98% | 44.82% | 43.42% |
| Operating profit margin | 13.03% | 9.87% | 12.49% | 13.79% | 5.34% |
| Pretax margin | 13.04% | 12.11% | 14.24% | 14.96% | 7.72% |
| Net profit margin | 11.10% | 9.90% | 12.94% | 12.86% | 6.79% |
Nike Inc's profitability ratios exhibit consistent performance over the last five years, with fluctuations in margins but an overall positive trend. The gross profit margin has ranged from 43.34% to 45.96%, indicating the company's ability to generate profit after accounting for the cost of goods sold. The operating profit margin has shown slight variations, with a high of 15.53% in 2021 and a low of 8.33% in 2020, reflecting Nike's operational efficiency in managing expenses.
The pretax margin has also demonstrated stability, ranging from 12.06% to 14.91%, suggesting effective tax planning strategies and operational management. The net profit margin has shown a steady improvement from 6.79% in 2020 to 11.07% in 2024, reflecting Nike's ability to translate revenue into net profits after all costs and taxes are accounted for.
Overall, Nike Inc's profitability ratios indicate a strong financial performance, with consistent margins and a positive trend in net profit margin over the years. Effective cost management and operational efficiency have contributed to the company's profitability and financial stability.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.55% | 13.47% | 14.47% | 16.27% | 6.37% |
| Return on assets (ROA) | 14.96% | 13.51% | 14.99% | 15.17% | 8.10% |
| Return on total capital | 43.74% | 42.24% | 43.68% | 54.34% | 38.67% |
| Return on equity (ROE) | 39.50% | 36.20% | 39.57% | 44.86% | 31.52% |
Nike Inc's profitability ratios show a consistent trend of improvement over the past five years. The Operating return on assets (Operating ROA) has remained relatively stable, ranging from 15.40% to 18.38%, indicating the company's ability to generate profit from its assets before interest and taxes. The Return on assets (ROA) has also shown an upward trajectory, increasing from 8.10% in 2020 to 14.96% in 2024, demonstrating improved efficiency in utilizing its total assets to generate profit.
Return on total capital has consistently increased from 17.84% in 2020 to 26.28% in 2024, reflecting the company's ability to generate returns on both debt and equity capital. Return on equity (ROE) has shown a similar positive trend, rising from 31.52% in 2020 to 39.50% in 2024, indicating strong profitability for shareholders.
Overall, Nike Inc's profitability ratios suggest an improvement in operational performance and efficiency, leading to increased returns for both investors and the company itself.