Nike Inc (NKE)
Pretax margin
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 6,700,000 | 6,220,000 | 6,293,000 | 6,021,000 | 6,201,000 | 6,329,000 | 6,522,000 | 6,373,000 | 6,651,000 | 7,131,000 | 7,097,000 | 7,052,000 | 6,661,000 | 4,003,000 | 3,248,000 | 3,041,000 | 2,887,000 | 4,934,000 | 5,344,000 | 5,092,000 |
| Revenue (ttm) | US$ in thousands | 51,426,000 | 51,604,000 | 51,565,000 | 51,492,000 | 51,217,000 | 50,639,000 | 49,120,000 | 47,162,000 | 46,696,000 | 46,785,000 | 46,271,000 | 46,157,000 | 44,591,000 | 38,480,000 | 38,227,000 | 37,310,000 | 37,282,000 | 41,210,000 | 40,717,000 | 49,139,000 |
| Pretax margin | 13.03% | 12.05% | 12.20% | 11.69% | 12.11% | 12.50% | 13.28% | 13.51% | 14.24% | 15.24% | 15.34% | 15.28% | 14.94% | 10.40% | 8.50% | 8.15% | 7.74% | 11.97% | 13.12% | 10.36% |
May 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $6,700,000K ÷ $51,426,000K
= 13.03%
Pretax margin is a crucial financial ratio that measures a company's efficiency in generating profits before taxes. Analyzing the trend of Nike Inc's pretax margin over the past few quarters reveals fluctuations in its profitability. The pretax margin has demonstrated some variability, with figures ranging from as low as 7.74% to as high as 15.34%.
In more recent quarters, there has been a general downward trend in the pretax margin for Nike Inc, with the ratio declining from 13.03% in May 2024 to 12.05% in February 2024. This downward trend suggests potential challenges in sustaining profitability or controlling costs during these periods.
It is worth noting that there have been quarters where the pretax margin exceeded 15%, indicating strong profitability for Nike Inc. However, the company experienced a significant dip in the pretax margin in the third quarter of 2021, dropping to 8.15%. This decline could be attributed to various factors such as increased expenses, changes in revenue streams, or economic conditions.
Overall, Nike Inc's pretax margin analysis highlights the importance of closely monitoring profitability trends and identifying factors that influence financial performance. Further examination of the underlying factors contributing to fluctuations in the pretax margin can provide valuable insights for stakeholders and decision-makers.
Peer comparison
May 31, 2024