Nike Inc (NKE)
Pretax margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,700,000 | 6,201,000 | 6,651,000 | 6,661,000 | 2,887,000 |
| Revenue | US$ in thousands | 51,500,000 | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 |
| Pretax margin | 13.01% | 12.06% | 14.23% | 14.91% | 7.72% |
May 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $6,700,000K ÷ $51,500,000K
= 13.01%
Analyzing Nike Inc's pretax margin over the past five years reveals fluctuations in the company's profitability before taxes. The pretax margin measures the efficiency of the company's cost management and revenue generation.
In May 2020, Nike's pretax margin stood at 7.72%, indicating a relatively lower level of profitability. However, over the following years, the company showed improvement in its cost control and revenue generation. By May 2021, the pretax margin had increased to 14.91%, reflecting a significant enhancement in profitability.
The positive trend continued into May 2022, with the pretax margin reaching 14.23%. This suggests that Nike effectively managed its expenses and boosted its revenue streams. However, in May 2023, there was a slight dip in the pretax margin to 12.06%, although it remained above the base year of 2020.
The most recent data for May 2024 shows a pretax margin of 13.01%, indicating a rebound in profitability compared to the previous year. Overall, Nike's pretax margin trend demonstrates the company's ability to adapt to market conditions, control costs, and optimize its profit generation strategies over the analyzed period.
Peer comparison
May 31, 2024