Nike Inc (NKE)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,702,000 | 6,690,000 | 5,056,000 | 5,835,000 | 6,140,000 |
| Total assets | US$ in thousands | 36,579,000 | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 |
| Operating ROA | 10.12% | 17.55% | 13.47% | 14.47% | 16.27% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $3,702,000K ÷ $36,579,000K
= 10.12%
The operating return on assets (ROA) for Nike Inc. demonstrates notable variability over the queried period. As of May 31, 2021, the operating ROA stood at 16.27%, indicating a relatively efficient utilization of assets to generate operating income. This figure declined to 14.47% in May 2022, suggesting a reduction in operational efficiency or possibly increased asset base without a proportionate increase in operating income. The downward trend continued into May 2023, with the operating ROA decreasing further to 13.47%, which could reflect sustained pressures on operational performance or strategic changes affecting asset utilization.
In the subsequent year, the metric experienced a significant rebound, rising to 17.55% as of May 31, 2024. This recovery may imply improvements in operational efficiency, cost management, or favorable market conditions positively impacting Nike's ability to generate operating income relative to its assets. However, by May 2025, the operating ROA markedly declined to 10.12%, indicating a substantial reduction in asset efficiency or operational profitability. This decline might be attributed to increased asset levels, decreased operational margins, or external factors affecting Nike’s core operations.
Overall, the data exhibits a period of fluctuation with an initial decline, a sharp recovery, followed by a pronounced decrease. Such variations suggest that Nike’s operational efficiency in utilizing its assets has been inconsistent over the examined period, influenced by a combination of internal strategic decisions and external market conditions.
Peer comparison
May 31, 2025