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 44.44% 43.34% 45.96% 44.68% 43.45%
Operating profit margin 11.39% 11.50% 14.28% 15.53% 8.33%
Pretax margin 13.01% 12.06% 14.23% 14.91% 7.72%
Net profit margin 11.07% 9.86% 12.94% 12.82% 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) 15.40% 15.76% 16.55% 18.38% 9.94%
Return on assets (ROA) 14.96% 13.51% 14.99% 15.17% 8.10%
Return on total capital 26.28% 25.79% 27.58% 31.28% 17.84%
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.


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Nike Inc Profitability Ratios