Nike Inc (NKE)
Return on assets (ROA)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,508,000 | 4,886,000 | 5,301,000 | 5,700,000 | 5,231,000 | 5,299,000 | 5,052,000 | 5,070,000 | 5,478,000 | 5,634,000 | 5,640,000 | 6,046,000 | 6,116,000 | 6,169,000 | 6,083,000 | 5,727,000 | 3,428,000 | 2,826,000 | 2,690,000 | 2,539,000 |
| Total assets | US$ in thousands | 37,793,000 | 37,959,000 | 37,867,000 | 38,110,000 | 37,356,000 | 37,203,000 | 36,786,000 | 37,531,000 | 38,294,000 | 39,647,000 | 41,088,000 | 40,321,000 | 38,577,000 | 38,917,000 | 37,917,000 | 37,740,000 | 36,185,000 | 34,836,000 | 33,258,000 | 31,342,000 |
| ROA | 11.93% | 12.87% | 14.00% | 14.96% | 14.00% | 14.24% | 13.73% | 13.51% | 14.31% | 14.21% | 13.73% | 14.99% | 15.85% | 15.85% | 16.04% | 15.17% | 9.47% | 8.11% | 8.09% | 8.10% |
February 28, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $4,508,000K ÷ $37,793,000K
= 11.93%
The analysis of Nike Inc.'s return on assets (ROA) over the specified period reveals significant fluctuations and notable trends.
From May 31, 2020, through November 30, 2020, the ROA remained relatively stable, hovering around 8.1%, indicating consistent operational efficiency during this period, which coincides with the early phase of the COVID-19 pandemic when global disruptions affected retail and sporting goods companies.
A substantial improvement is observed starting from February 28, 2021, where the ROA jumps to 9.47%, and then continues its upward trajectory through 2021, reaching 15.17% on May 31, 2021, and further increasing to over 16% by August 31, 2021. This indicates a period of strong profitability relative to total assets, likely driven by increased demand, strategic initiatives, or recovery from pandemic-related downturns.
Throughout 2022, the ROA exhibits moderate declines and stabilizations, with values around 14.99% in May 2022 and 13.73% in August 2022, maintaining a level that signifies efficient utilization of assets. The ROA remains relatively stable into 2023, fluctuating slightly around 14%, with minor dips and recoveries, such as the lowest point of approximately 12.87% in November 2024 and an approximate lowest of 11.93% projected for February 2025.
Overall, Nike's ROA trend signifies a substantial increase during 2021, suggesting improved profitability and operational efficiency following the pandemic's initial impact. The subsequent stabilization indicates a period of maintaining efficient asset use, with minor fluctuations reflecting typical business cycle variations or strategic adjustments. The projected decline approaching late 2024 and into early 2025 may suggest anticipated challenges or shifts in the operational environment, but the long-term ROA remains within a healthy range, demonstrating overall effective asset management.
In summary, Nike's ROA experienced a significant rise in 2021, followed by relative stability with some contraction projected toward early 2025, highlighting periods of robust profitability and efficiency, as well as expected cyclical or strategic adjustments.
Peer comparison
Feb 28, 2025