Ratios (Summary)

Nike Inc., profitability ratios

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Return on Sales
Gross profit margin 44.77% 43.59% 43.40% 45.58% 46.28% 44.87%
Operating profit margin 13.24% 12.86% 12.60% 13.49% 13.01% 9.69%
Net profit margin 9.69% 9.82% 9.21% 10.22% 10.03% 7.75%
Return on Investment
Return on equity (ROE) 24.88% 22.28% 21.41% 21.67% 19.55% 17.11%
Return on assets (ROA) 14.48% 14.13% 14.37% 14.22% 13.23% 11.22%

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 improved from 2012 to 2013 and from 2013 to 2014.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Nike Inc.'s operating profit margin improved from 2012 to 2013 and from 2013 to 2014.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Nike Inc.'s net profit margin improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Nike Inc.'s ROE improved from 2012 to 2013 and from 2013 to 2014.
ROA A profitability ratio calculated as net income divided by total assets. Nike Inc.'s ROA deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

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Gross Profit Margin

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Selected Financial Data (USD $ in millions)
Gross profit 12,446  11,034  10,471  9,508  8,800  8,604 
Revenues 27,799  25,313  24,128  20,862  19,014  19,176 
Gross profit margin1 44.77% 43.59% 43.40% 45.58% 46.28% 44.87%

Source: Based on data from Nike Inc. Annual Reports

2014 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 12,446 ÷ 27,799 = 44.77%

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 improved from 2012 to 2013 and from 2013 to 2014.

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Operating Profit Margin

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Selected Financial Data (USD $ in millions)
Operating income 3,680  3,254  3,040  2,815  2,474  1,858 
Revenues 27,799  25,313  24,128  20,862  19,014  19,176 
Operating Profit Margin, Comparison to Industry
Nike Inc.1 13.24% 12.86% 12.60% 13.49% 13.01% 9.69%
Industry, Consumer Goods –% 10.40% 6.03% 9.83% 9.43% 8.41%

Source: Based on data from Nike Inc. Annual Reports

2014 Calculations

1 Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 3,680 ÷ 27,799 = 13.24%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Nike Inc.'s operating profit margin improved from 2012 to 2013 and from 2013 to 2014.

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Net Profit Margin

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Selected Financial Data (USD $ in millions)
Net income 2,693  2,485  2,223  2,133  1,907  1,487 
Revenues 27,799  25,313  24,128  20,862  19,014  19,176 
Net Profit Margin, Comparison to Industry
Nike Inc.1 9.69% 9.82% 9.21% 10.22% 10.03% 7.75%
Industry, Consumer Goods –% 7.93% 7.03% 8.91% 7.86% 6.40%

Source: Based on data from Nike Inc. Annual Reports

2014 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 2,693 ÷ 27,799 = 9.69%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Nike Inc.'s net profit margin improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

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Return on Equity (ROE)

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Selected Financial Data (USD $ in millions)
Net income 2,693  2,485  2,223  2,133  1,907  1,487 
Total shareholders' equity 10,824  11,156  10,381  9,843  9,754  8,693 
ROE, Comparison to Industry
Nike Inc.1 24.88% 22.28% 21.41% 21.67% 19.55% 17.11%
Industry, Consumer Goods –% 19.32% 17.47% 22.28% 19.56% 16.48%

Source: Based on data from Nike Inc. Annual Reports

2014 Calculations

1 ROE = 100 × Net income ÷ Total shareholders' equity
= 100 × 2,693 ÷ 10,824 = 24.88%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Nike Inc.'s ROE improved from 2012 to 2013 and from 2013 to 2014.

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Return on Assets (ROA)

 
May 31, 2014 May 31, 2013 May 31, 2012 May 31, 2011 May 31, 2010 May 31, 2009
Selected Financial Data (USD $ in millions)
Net income 2,693  2,485  2,223  2,133  1,907  1,487 
Total assets 18,594  17,584  15,465  14,998  14,419  13,250 
ROA, Comparison to Industry
Nike Inc.1 14.48% 14.13% 14.37% 14.22% 13.23% 11.22%
Industry, Consumer Goods –% 5.95% 5.28% 6.90% 5.91% 4.79%

Source: Based on data from Nike Inc. Annual Reports

2014 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,693 ÷ 18,594 = 14.48%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Nike Inc.'s ROA deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

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