Nike Inc (NKE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 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 | 8,055,000 |
| ROE | 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% | 31.52% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,508,000K ÷ $14,007,000K
= 32.18%
The analysis of Nike Inc's return on equity (ROE) over the specified periods reveals notable fluctuations with an overarching upward trend from mid-2020 to early 2024, followed by a slight decline. Initially, the ROE stood at approximately 31.52% as of May 2020, experiencing a decline through the subsequent quarters, reaching a low of around 26.56% by November 2020. This decline may reflect challenges faced during that period, potentially linked to external factors such as the global economic environment during the early stages of the COVID-19 pandemic.
Subsequently, beginning in May 2021, there was a significant recovery and upward momentum, with the ROE soaring to a peak of approximately 44.86% by May 2021 and remaining elevated through August 2021 at around 42.41%. This period indicates a robust performance and efficient utilization of shareholders’ equity, likely driven by improved operational efficiency, increased demand, or strategic initiatives.
Between late 2021 and early 2024, Nike’s ROE stabilized within a relatively high range, generally fluctuating between approximately 35.65% and 41.34%. The level hovered around mid-30s to early 40s, reflecting a period of sustained profitability and consistent return to shareholders. In particular, the ROE was recorded at about 37.70% in February 2023 and marginally increased to 39.50% by May 2024.
Following the peak in May 2024, there was a brief decline to 34.81% in November 2024, and further to 32.18% by February 2025. This decrease suggests a potential normalization of profitability, increased equity base, or other factors affecting return efficiency. Overall, Nike’s ROE trajectory illustrates periods of strong profitability with notable resilience following pandemic-related downturns, although recent data indicates some moderation in return levels.
Peer comparison
Feb 28, 2025