Nike Inc (NKE)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,219,000 | 5,700,000 | 5,070,000 | 6,046,000 | 5,727,000 |
| Total assets | US$ in thousands | 36,579,000 | 38,110,000 | 37,531,000 | 40,321,000 | 37,740,000 |
| ROA | 8.80% | 14.96% | 13.51% | 14.99% | 15.17% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $3,219,000K ÷ $36,579,000K
= 8.80%
The analysis of Nike Inc.'s return on assets (ROA) over the specified period reveals a fluctuating trend with notable changes in profitability efficiency. As of May 31, 2021, the ROA stood at 15.17%, indicating a strong ability to generate profit from its assets. This figure slightly declined to 14.99% on May 31, 2022, reflecting a marginal reduction in asset efficiency.
By May 31, 2023, the ROA further decreased to 13.51%, suggesting a continued downward trajectory in how effectively Nike was utilizing its assets to produce earnings. However, there was a recovery in the subsequent year, with the ROA increasing to 14.96% as of May 31, 2024. This rebound indicates an improvement in asset utilization and profitability relative to prior years.
Contrasting the earlier years, the most significant change occurred by May 31, 2025, where the ROA sharply declined to 8.80%. This substantial drop signals a notable decline in the company’s efficiency in generating profit from its assets, which could be attributed to various factors such as increased asset base, lower profit margins, or operational challenges.
Overall, the period demonstrates a pattern of initial decline, partial recovery, and a later significant decrease in ROA, highlighting variability in Nike’s asset profitability efficiency over these years. The decline in 2025 warrants further investigation into underlying operational or market factors affecting asset utilization and profitability.
Peer comparison
May 31, 2025