Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Nike Inc., profitability ratios
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Nike Inc. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Nike Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Nike Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Nike Inc., gross profit margin calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 22,292) | 21,479) | 19,962) | 16,241) | 17,474) | 15,956) | |
| Revenues | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | 36,397) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 43.52% | 45.98% | 44.82% | 43.42% | 44.67% | 43.84% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 55.39% | 57.68% | 55.98% | 55.87% | 55.23% | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 22,292 ÷ 51,217 = 43.52%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Nike Inc. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Profit Margin
Nike Inc., operating profit margin calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,915) | 6,675) | 6,937) | 3,115) | 4,772) | 4,445) | |
| Revenues | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | 36,397) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 11.55% | 14.29% | 15.58% | 8.33% | 12.20% | 12.21% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 16.38% | 21.31% | 18.63% | 22.34% | 21.46% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | 12.21% | 15.12% | 15.85% | 9.68% | 12.92% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 9.12% | 8.07% | 8.16% | 5.53% | 7.81% | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 5,915 ÷ 51,217 = 11.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Nike Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Nike Inc., net profit margin calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | 1,933) | |
| Revenues | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | 36,397) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 9.90% | 12.94% | 12.86% | 6.79% | 10.30% | 5.31% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 10.54% | 15.59% | 13.38% | 16.22% | 14.71% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | 9.99% | 13.26% | 12.91% | 7.70% | 10.64% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 7.80% | 4.64% | 8.35% | 4.16% | 6.11% | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,070 ÷ 51,217 = 9.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Nike Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Equity (ROE)
Nike Inc., ROE calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | 1,933) | |
| Shareholders’ equity | 14,004) | 15,281) | 12,767) | 8,055) | 9,040) | 9,812) | |
| Profitability Ratio | |||||||
| ROE1 | 36.20% | 39.57% | 44.86% | 31.52% | 44.57% | 19.70% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| lululemon athletica inc. | 27.15% | 35.60% | 23.02% | 33.07% | 33.46% | — | |
| ROE, Sector | |||||||
| Consumer Durables & Apparel | 34.54% | 38.96% | 41.21% | 31.82% | 43.04% | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 30.04% | 19.29% | 30.07% | 18.30% | 31.39% | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 5,070 ÷ 14,004 = 36.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Nike Inc., ROA calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | 1,933) | |
| Total assets | 37,531) | 40,321) | 37,740) | 31,342) | 23,717) | 22,536) | |
| Profitability Ratio | |||||||
| ROA1 | 13.51% | 14.99% | 15.17% | 8.10% | 16.99% | 8.58% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| lululemon athletica inc. | 15.25% | 19.73% | 14.07% | 19.67% | 23.21% | — | |
| ROA, Sector | |||||||
| Consumer Durables & Apparel | 13.73% | 15.51% | 15.06% | 9.20% | 17.49% | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 7.41% | 4.34% | 7.05% | 3.37% | 5.62% | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,070 ÷ 37,531 = 13.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |