Nike Inc (NKE)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,885,000 | 6,700,000 | 6,201,000 | 6,651,000 | 6,661,000 |
| Revenue | US$ in thousands | 46,309,000 | 51,362,000 | 51,217,000 | 46,710,000 | 44,538,000 |
| Pretax margin | 8.39% | 13.04% | 12.11% | 14.24% | 14.96% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $3,885,000K ÷ $46,309,000K
= 8.39%
The pretax margin of Nike Inc. demonstrates a declining trend over the period from May 31, 2021, to May 31, 2025. Specifically, the pretax margin was approximately 14.96% in 2021, modestly decreasing to 14.24% in 2022. This downward trajectory continues more significantly into 2023, with the margin narrowing to 12.11%, indicating a reduction in profitability prior to taxes. However, there is a slight rebound observed in 2024, where the pretax margin increases to 13.04%, suggesting a partial recovery or improvement in pretax profitability. Despite this uptick, the margin in 2025 plunges sharply to 8.39%, marking a notable decline. This substantial decrease in pretax margin signals a considerable erosion in Nike's ability to retain earnings before tax relative to its revenues. Overall, the data reflect an initial period of stability followed by a significant downturn in pretax profitability, underscoring potential challenges in cost management, revenue generation, or other operational factors affecting earnings before taxes over the analyzed timeframe.
Peer comparison
May 31, 2025