Nike Inc. (NKE)

Profitability Analysis

Annual Data | Quarterly Data

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).


Ratios (Summary)

Annual Data | Quarterly Data

Nike Inc., profitability ratios

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Return on Sales
Gross profit margin 43.59% 43.40% 45.58% 46.28% 44.87% 45.03%
Operating profit margin 12.86% 12.60% 13.49% 13.01% 9.69% 13.07%
Net profit margin 9.82% 9.21% 10.22% 10.03% 7.75% 10.11%
  Return on Investment
Return on equity (ROE) 22.28% 21.41% 21.67% 19.55% 17.11% 24.06%
Return on assets (ROA) 14.13% 14.37% 14.22% 13.23% 11.22% 15.13%

Source: Based on data from Nike Inc. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Nike Inc.'s gross profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Nike Inc.'s operating profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Nike Inc.'s net profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Nike Inc.'s ROE deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.
ROA A profitability ratio calculated as net income divided by total assets. Nike Inc.'s ROA improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

Gross Profit Margin

Annual Data | Quarterly Data

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Selected Financial Data (USD $ in millions)
Gross profit 11,034  10,471  9,508  8,800  8,604  8,387 
Revenues 25,313  24,128  20,862  19,014  19,176  18,627 
   
Gross profit margin1 43.59% 43.40% 45.58% 46.28% 44.87% 45.03%

Source: Based on data from Nike Inc. Annual Reports

2013 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 11,034 ÷ 25,313 = 43.59%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Nike Inc.'s gross profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.

Operating Profit Margin

Annual Data | Quarterly Data

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Selected Financial Data (USD $ in millions)
Operating income 3,254  3,040  2,815  2,474  1,858  2,434 
Revenues 25,313  24,128  20,862  19,014  19,176  18,627 
  Operating Profit Margin, Comparison to Industry
Nike Inc.1 12.86% 12.60% 13.49% 13.01% 9.69% 13.07%
  Industry, Consumer Goods 11.48% 10.18% 10.76% 10.31% 8.41% –%

Source: Based on data from Nike Inc. Annual Reports

2013 Calculations

1 Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 3,254 ÷ 25,313 = 12.86%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Nike Inc.'s operating profit margin deteriorated from 2011 to 2012 but then slightly improved from 2012 to 2013.

Net Profit Margin

Annual Data | Quarterly Data

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Selected Financial Data (USD $ in millions)
Net income 2,485  2,223  2,133  1,907  1,487  1,883 
Revenues 25,313  24,128  20,862  19,014  19,176  18,627 
  Net Profit Margin, Comparison to Industry
Nike Inc.1 9.82% 9.21% 10.22% 10.03% 7.75% 10.11%
  Industry, Consumer Goods 8.60% 7.49% 9.33% 8.38% 6.40% –%

Source: Based on data from Nike Inc. Annual Reports

2013 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 2,485 ÷ 25,313 = 9.82%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Nike Inc.'s net profit margin deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Return on Equity (ROE)

Annual Data | Quarterly Data

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Selected Financial Data (USD $ in millions)
Net income 2,485  2,223  2,133  1,907  1,487  1,883 
Total shareholders' equity 11,156  10,381  9,843  9,754  8,693  7,825 
  ROE, Comparison to Industry
Nike Inc.1 22.28% 21.41% 21.67% 19.55% 17.11% 24.06%
  Industry, Consumer Goods 20.00% 17.50% 22.11% 19.80% 16.48% –%

Source: Based on data from Nike Inc. Annual Reports

2013 Calculations

1 ROE = 100 × Net income ÷ Total shareholders' equity
= 100 × 2,485 ÷ 11,156 = 22.28%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Nike Inc.'s ROE deteriorated from 2011 to 2012 but then improved from 2012 to 2013 exceeding 2011 level.

Return on Assets (ROA)

Annual Data | Quarterly Data

 
    May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009 May 31, 2008
  Selected Financial Data (USD $ in millions)
Net income 2,485  2,223  2,133  1,907  1,487  1,883 
Total assets 17,584  15,465  14,998  14,419  13,250  12,443 
  ROA, Comparison to Industry
Nike Inc.1 14.13% 14.37% 14.22% 13.23% 11.22% 15.13%
  Industry, Consumer Goods 6.29% 5.41% 6.96% 6.08% 4.79% –%

Source: Based on data from Nike Inc. Annual Reports

2013 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,485 ÷ 17,584 = 14.13%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Nike Inc.'s ROA improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.