Nike Inc (NKE)
Return on equity (ROE)
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,219,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 13,213,000 | 14,007,000 | 14,037,000 | 13,944,000 | 14,430,000 | 14,226,000 | 14,146,000 | 13,971,000 | 14,004,000 | 14,531,000 | 15,272,000 | 15,822,000 | 15,281,000 | 14,809,000 | 14,924,000 | 14,343,000 | 12,767,000 | 11,931,000 | 10,640,000 | 9,224,000 |
| ROE | 24.36% | 32.18% | 34.81% | 38.02% | 39.50% | 36.77% | 37.46% | 36.16% | 36.20% | 37.70% | 36.89% | 35.65% | 39.57% | 41.30% | 41.34% | 42.41% | 44.86% | 28.73% | 26.56% | 29.16% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,219,000K ÷ $13,213,000K
= 24.36%
The analysis of Nike Inc.'s return on equity (ROE) over the specified period indicates a generally robust profitability trend, with notable fluctuations reflecting business dynamics and external factors.
From August 2020 to May 2021, the ROE exhibited a significant upward trajectory, rising from 29.16% to an all-time high of 44.86%. This increase likely corresponds to strong financial performance amidst recovering retail conditions following the initial impacts of the COVID-19 pandemic. The heightened ROE suggests effective utilization of shareholders' equity to generate earnings during this period.
From May 2021 through August 2022, the ROE stabilized within a relatively high range, oscillating between approximately 39.57% and 42.41%. This stability indicates consistent profitability and efficient management of equity resources. During this phase, Nike maintained a solid competitive position, likely benefiting from brand strength and operational efficiencies.
Subsequent quarters demonstrated a gradual decline in ROE, reaching approximately 36.20% by May 2023 and slightly declining to 36.16% in August 2023. This downward trend may reflect increased competitive pressures, currency fluctuations, or shifting market conditions affecting profit margins relative to equity.
Notably, in late 2023 and early 2024, ROE showed signs of slight recovery, reaching 37.46% in November 2023 and approximately 36.77% in February 2024. However, a marked reduction is observed in the later months, with ROE declining to 34.81% in November 2024, and further decreasing to around 32.18% by February 2025. The most recent data point for May 2025 indicates a significant drop to 24.36%, representing a substantial decline in profitability relative to shareholders' equity.
Overall, Nike's ROE has experienced periods of high profitability, particularly during the early to mid-2021 phase, followed by a gradual decline over the subsequent years. The recent downward trend suggests challenges impacting profitability or capital efficiency, which merit ongoing monitoring to fully assess the company's financial health and operational effectiveness moving forward.
Peer comparison
May 31, 2025