Nike Inc (NKE)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 4,318,000 | 4,572,000 | 4,304,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 8,055,000 | 9,045,000 | 9,351,000 | 9,200,000 |
| ROE | 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% | 31.52% | 47.74% | 48.89% | 46.78% |
May 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,700,000K ÷ $14,430,000K
= 39.50%
Nike Inc's return on equity (ROE) has shown variability over the past few years. The ROE has ranged from a low of 26.56% in Feb 28, 2021, to a high of 47.74% in May 31, 2020. Overall, the ROE has been healthy, with an average of approximately 38.68% over the period analyzed.
The high ROE values indicate that Nike has been efficient in generating profits from its shareholders' equity. This could be attributed to effective management of assets and liabilities, as well as strong financial performance. The consecutive high ROE values from Nov 30, 2019, to May 31, 2020, suggest a period of particularly strong performance for the company.
The drop in ROE in 2021 and 2022 could be a result of various factors such as changes in market conditions, increased competition, or shifts in consumer preferences. However, Nike's ROE remained above 35% during these periods, indicating a continued ability to generate strong returns for shareholders.
Investors and stakeholders may view Nike's consistent high ROE values as a positive indicator of the company's financial health and profitability. It is essential for Nike to continue monitoring and managing its ROE to ensure sustainable growth and value creation for its shareholders.
Peer comparison
May 31, 2024