Nike Inc (NKE)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,465,000 | 5,583,000 | 6,062,000 | 5,824,000 | 5,915,000 | 6,162,000 | 6,379,000 | 6,246,000 | 6,675,000 | 7,120,000 | 7,169,000 | 7,295,000 | 6,937,000 | 4,186,000 | 3,698,000 | 3,338,000 | 3,115,000 | 5,180,000 | 5,238,000 | 4,981,000 |
| Long-term debt | US$ in thousands | 7,903,000 | 8,930,000 | 8,930,000 | 8,929,000 | 8,927,000 | 8,925,000 | 8,924,000 | 8,922,000 | 8,920,000 | 9,418,000 | 9,417,000 | 9,415,000 | 9,413,000 | 9,412,000 | 9,410,000 | 9,408,000 | 9,406,000 | 3,463,000 | 3,462,000 | 3,463,000 |
| 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 |
| Return on total capital | 24.47% | 24.11% | 26.27% | 25.43% | 25.79% | 26.27% | 26.36% | 25.24% | 27.58% | 29.39% | 29.45% | 30.71% | 31.28% | 19.61% | 18.44% | 17.92% | 17.84% | 41.41% | 40.88% | 39.34% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,465,000K ÷ ($7,903,000K + $14,430,000K)
= 24.47%
Nike Inc's return on total capital has shown fluctuations over the past few quarters. The ratio has ranged between 17.84% and 31.28% in the last two years. It reached its peak in November 2021 at 31.28% and has since shown some variability but generally remained above 24%. The company's ability to generate a return on its total capital has been relatively strong, although it experienced a slight decline in the most recent quarters compared to the peak levels seen in the previous year. Further analysis is needed to understand the factors driving these fluctuations and to assess the sustainability of Nike's return on total capital performance.
Peer comparison
May 31, 2024