Nike Inc (NKE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 13,213,000 | 14,430,000 | 14,004,000 | 15,281,000 | 12,767,000 |
| ROE | 24.36% | 39.50% | 36.20% | 39.57% | 44.86% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,219,000K ÷ $13,213,000K
= 24.36%
The return on equity (ROE) for Nike Inc. demonstrates notable fluctuations over the specified period from May 31, 2021, to May 31, 2025. In May 2021, the ROE stood at 44.86%, indicative of a high level of profitability relative to shareholders' equity. By May 31, 2022, the ROE reduced to 39.57%, reflecting a decline but still maintaining a relatively robust profitability margin. The downward trend continued in May 2023, with the ROE decreasing further to 36.20%, suggesting a slight erosion in efficiency or profitability in generating returns for shareholders.
However, the ROE experienced a modest rebound by May 31, 2024, rising to 39.50%, approaching the levels observed in the previous year. Despite this short-term recovery, the ROE significantly declined again by May 31, 2025, reaching 24.36%. This sharp decrease indicates a substantial reduction in the company's ability to generate profits relative to its equity base.
Overall, the trend suggests that Nike's ROE has experienced a period of relative strength during 2021 and early 2022, followed by a gradual decline, culminating in a notable decrease by 2025. Such variations could be indicative of changes in net income, equity levels, or both, and may reflect evolving operational efficiencies, market conditions, or strategic decisions affecting profitability.
Peer comparison
May 31, 2025