Nike Inc (NKE)
Gross profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 22,887,000 | 22,292,000 | 21,479,000 | 19,962,000 | 16,241,000 |
| Revenue | US$ in thousands | 51,500,000 | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 |
| Gross profit margin | 44.44% | 43.34% | 45.96% | 44.68% | 43.45% |
May 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $22,887,000K ÷ $51,500,000K
= 44.44%
Based on the data provided, Nike Inc's gross profit margin has shown fluctuations over the past five years. In May 2024, the gross profit margin stood at 44.44%, marking a slight increase from the previous year's 43.34%. This improvement suggests that Nike was able to generate more gross profit relative to its revenue in the most recent year.
Looking at the trend over the five-year period, we observe that there have been fluctuations in the gross profit margin, with values ranging from 43.45% in May 2020 to 45.96% in May 2022. Despite these fluctuations, Nike has generally maintained a gross profit margin within the mid-40% range, indicating the company's ability to efficiently manage its production costs and markups on its products.
It is important to note that the gross profit margin is a key metric in evaluating a company's operational efficiency and profitability. A higher gross profit margin indicates that the company is able to control its production costs effectively and earn a healthy profit on each unit sold.
Overall, Nike's trend of maintaining gross profit margins in the mid-40% range demonstrates the company's ability to effectively manage its production costs and maintain profitability over the years. This consistency in gross profit margin reflects positively on Nike's operational efficiency and competitiveness in the market.
Peer comparison
May 31, 2024