Nike Inc (NKE)
Operating return on assets (Operating ROA)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,966,000 | 5,514,000 | 5,955,000 | 6,350,000 | 5,750,000 | 5,682,000 | 5,444,000 | 5,375,000 | 5,562,000 | 5,740,000 | 5,654,000 | 6,225,000 | 6,966,000 | 7,156,000 | 7,235,000 | 6,844,000 | 4,127,000 | 3,372,000 | 3,012,000 | 2,858,000 |
| Total assets | US$ in thousands | 37,793,000 | 37,959,000 | 37,867,000 | 38,110,000 | 37,356,000 | 37,203,000 | 36,786,000 | 37,531,000 | 38,294,000 | 39,647,000 | 41,088,000 | 40,321,000 | 38,577,000 | 38,917,000 | 37,917,000 | 37,740,000 | 36,185,000 | 34,836,000 | 33,258,000 | 31,342,000 |
| Operating ROA | 13.14% | 14.53% | 15.73% | 16.66% | 15.39% | 15.27% | 14.80% | 14.32% | 14.52% | 14.48% | 13.76% | 15.44% | 18.06% | 18.39% | 19.08% | 18.13% | 11.41% | 9.68% | 9.06% | 9.12% |
February 28, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,966,000K ÷ $37,793,000K
= 13.14%
The analysis of Nike Inc.'s operating return on assets (ROA) over the specified period reveals notable fluctuations, indicative of the company's operational efficiency and profitability dynamics. Initially, the operating ROA was relatively steady around 9.12% as of May 31, 2020, and 9.06% as of August 31, 2020. This stability persisted through late 2020, with a slight increase to 9.68% by November 30, 2020. A significant upward trend commenced in early 2021, reaching 11.41% as of February 28, 2021, and then dramatically rising to 18.13% by May 31, 2021. This sharp improvement reflects enhanced operational performance and possibly successful strategic initiatives.
Throughout 2021, the operating ROA remained strong, peaking at around 19.08% on August 31, 2021, before experiencing a modest decline to 18.39% in late November 2021 and stabilizing near 18.06% by February 28, 2022. The subsequent period saw a gradual decrease in operating ROA, falling to 15.44% in May 2022 and further down to 13.76% by August 2022. In late 2022, the ROA experienced slight fluctuations, with figures such as 14.48% in November 2022 and 14.52% in February 2023.
During 2023, the operating ROA showed relative stability, hovering around 14-15%, and a modest upward trajectory was observed in late 2023, culminating at 15.27% in November 2023 and slightly increasing to 15.39% in February 2024. The trend continued into the first half of 2024, with the April figure notably higher at 16.66%, followed by a slight decline to 15.73% in August 2024. The data indicates a downward correction to 14.53% as of November 30, 2024, and a further decrease to 13.14% in February 2025.
Overall, the company's operating ROA experienced a significant surge during the early 2021 period, indicating higher operational efficiency and profitability during this phase. Post-2021, a gradual decline and stabilization occurred, with some fluctuations. The declining trend towards early 2025 suggests potential challenges impacting operational efficiency, though the values remain above pre-2021 levels, indicating that Nike continues to leverage its core operations effectively, albeit with varying efficiencies over time.
Peer comparison
Feb 28, 2025