Nike Inc (NKE)
Operating return on assets (Operating ROA)
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,702,000 | 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 |
| Total assets | US$ in thousands | 36,579,000 | 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 |
| Operating ROA | 10.12% | 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% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,702,000K ÷ $36,579,000K
= 10.12%
The operating return on assets (ROA) for Nike Inc. exhibits notable fluctuations over the analyzed period from August 2020 through May 2025. Starting at 9.06% in August 2020, the metric displays a consistent upward trajectory into early 2022, peaking at 19.08% in August 2021, indicating a period of improved efficiency in generating operating income relative to total assets. This significant increase could be attributed to strategic initiatives, cost control measures, or enhanced sales performance during this timeframe.
Following this peak, a gradual decline commences, with ROA decreasing to approximately 13.76% by August 2022 and remaining relatively stable around 14.5% through the end of 2023. This stabilization suggests a period of equilibrium in the company's operating efficiency, possibly reflecting market conditions or normalization after previous growth surges.
However, a downward trend resumes in late 2024, descending to 10.12% by May 2025. This downward movement may signal challenges in maintaining previous levels of operating profitability or shifts in asset utilization efficiency. The recent decline indicates a potential concern regarding operating performance relative to asset base, warranting further analysis of underlying factors such as sales growth, operational costs, or asset management effectiveness.
Overall, Nike's operating ROA experienced a substantial rise, reaching an all-time high in mid-2021, followed by periods of stabilization and subsequent decline. These movements highlight the company's evolving operational efficiency and asset utilization over the examined timeframe.
Peer comparison
May 31, 2025