Nike Inc (NKE)
Operating return on assets (Operating ROA)
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,915,000 | 6,675,000 | 6,937,000 | 3,115,000 | 4,772,000 |
| Total assets | US$ in thousands | 37,531,000 | 40,321,000 | 37,740,000 | 31,342,000 | 23,717,000 |
| Operating ROA | 15.76% | 16.55% | 18.38% | 9.94% | 20.12% |
May 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $5,915,000K ÷ $37,531,000K
= 15.76%
To analyze Nike, Inc.'s operating return on assets (ROA) over the past five years, we can see a consistent trend of fluctuation. The operating ROA decreased from 20.12% in 2019 to 9.94% in 2020, indicating a significant decline in the company's ability to generate operating income from its assets. However, in 2021, the operating ROA bounced back to 18.38%, showing a substantial improvement in effectively utilizing its assets to generate operating profits. In 2022, the operating ROA slightly decreased to 16.55% and further to 15.76% in 2023.
This trend suggests some variability in Nike's ability to generate operating income from its assets, which may be attributed to changes in operational efficiency and asset utilization. It would be essential to further investigate the factors contributing to these fluctuations to understand the company's overall operating performance.
Peer comparison
May 31, 2023