Nike Inc (NKE)
Operating return on assets (Operating ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,868,000 | 5,915,000 | 6,675,000 | 6,937,000 | 3,115,000 |
| Total assets | US$ in thousands | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 | 31,342,000 |
| Operating ROA | 15.40% | 15.76% | 16.55% | 18.38% | 9.94% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $5,868,000K ÷ $38,110,000K
= 15.40%
Operating return on assets (Operating ROA) is a key financial metric that indicates how effectively a company is generating profits from its assets used in operations. Nike Inc's Operating ROA has shown a fluctuating trend over the past five years. In May 2024, the Operating ROA decreased to 15.40% from 15.76% in May 2023, showing a slight decline in profitability. However, the company's performance in 2024 remains relatively strong compared to previous years.
The peak in Operating ROA was observed in May 2021 at 18.38%, indicating that Nike was exceptionally efficient in utilizing its assets to generate operating profits. This performance was followed by a decrease in 2022 to 16.55%, but still at a commendable level. The Operating ROA then saw a considerable improvement in 2023 before experiencing a slight downturn in 2024.
Overall, Nike Inc's Operating ROA has demonstrated a mix of highs and lows over the past five years. It is essential for the company to monitor this metric closely to ensure efficient asset utilization and sustained profitability in the future.
Peer comparison
May 31, 2024