Nike Inc (NKE)
Pretax margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,201,000 | 6,651,000 | 6,661,000 | 2,887,000 | 4,801,000 |
| Revenue | US$ in thousands | 51,430,000 | 46,736,000 | 44,676,000 | 37,380,000 | 38,884,000 |
| Pretax margin | 12.06% | 14.23% | 14.91% | 7.72% | 12.35% |
May 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $6,201,000K ÷ $51,430,000K
= 12.06%
Nike, Inc.'s pretax margin has varied over the past five years. In 2023, the pretax margin was 12.11%, showing a decrease from 14.24% in 2022 and 14.96% in 2021. This may indicate a decrease in the company's ability to generate profits before accounting for taxes, which could be attributed to factors such as increased operating expenses or changes in sales. Comparing this to the 7.72% pretax margin in 2020, the company's profitability has improved since then, but it is still lower than the 12.27% margin in 2019. This suggests some level of fluctuation in Nike's profitability, and it would be important to delve deeper into the company's financials and operations to understand the reasons for these changes over the years.
Peer comparison
May 31, 2023