Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Nike Inc. (NYSE:NKE)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Beginner level

Two-Component Disaggregation of ROE

Nike Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
May 31, 2021 44.86% = 15.17% × 2.96
May 31, 2020 31.52% = 8.10% × 3.89
May 31, 2019 44.57% = 16.99% × 2.62
May 31, 2018 19.70% = 8.58% × 2.30
May 31, 2017 34.17% = 18.23% × 1.87
May 31, 2016 30.67% = 17.57% × 1.75

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Nike Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
May 31, 2021 44.86% = 12.86% × 1.18 × 2.96
May 31, 2020 31.52% = 6.79% × 1.19 × 3.89
May 31, 2019 44.57% = 10.30% × 1.65 × 2.62
May 31, 2018 19.70% = 5.31% × 1.62 × 2.30
May 31, 2017 34.17% = 12.34% × 1.48 × 1.87
May 31, 2016 30.67% = 11.61% × 1.51 × 1.75

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in profitability measured by net profit margin ratio.


Five-Component Disaggregation of ROE

Nike Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
May 31, 2021 44.86% = 0.86 × 0.96 × 15.62% × 1.18 × 2.96
May 31, 2020 31.52% = 0.88 × 0.95 × 8.12% × 1.19 × 3.89
May 31, 2019 44.57% = 0.84 × 0.97 × 12.61% × 1.65 × 2.62
May 31, 2018 19.70% = 0.45 × 0.97 × 12.22% × 1.62 × 2.30
May 31, 2017 34.17% = 0.87 × 0.98 × 14.47% × 1.48 × 1.87
May 31, 2016 30.67% = 0.81 × 0.99 × 14.37% × 1.51 × 1.75

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in return on equity ratio (ROE) over 2021 year is the increase in operating profitability measured by EBIT margin ratio.


Two-Component Disaggregation of ROA

Nike Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
May 31, 2021 15.17% = 12.86% × 1.18
May 31, 2020 8.10% = 6.79% × 1.19
May 31, 2019 16.99% = 10.30% × 1.65
May 31, 2018 8.58% = 5.31% × 1.62
May 31, 2017 18.23% = 12.34% × 1.48
May 31, 2016 17.57% = 11.61% × 1.51

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in return on assets ratio (ROA) over 2021 year is the increase in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

Nike Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
May 31, 2021 15.17% = 0.86 × 0.96 × 15.62% × 1.18
May 31, 2020 8.10% = 0.88 × 0.95 × 8.12% × 1.19
May 31, 2019 16.99% = 0.84 × 0.97 × 12.61% × 1.65
May 31, 2018 8.58% = 0.45 × 0.97 × 12.22% × 1.62
May 31, 2017 18.23% = 0.87 × 0.98 × 14.47% × 1.48
May 31, 2016 17.57% = 0.81 × 0.99 × 14.37% × 1.51

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in return on assets ratio (ROA) over 2021 year is the increase in operating profitability measured by EBIT margin ratio.


Disaggregation of Net Profit Margin

Nike Inc., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
May 31, 2021 12.86% = 0.86 × 0.96 × 15.62%
May 31, 2020 6.79% = 0.88 × 0.95 × 8.12%
May 31, 2019 10.30% = 0.84 × 0.97 × 12.61%
May 31, 2018 5.31% = 0.45 × 0.97 × 12.22%
May 31, 2017 12.34% = 0.87 × 0.98 × 14.47%
May 31, 2016 11.61% = 0.81 × 0.99 × 14.37%

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

The primary reason for the increase in net profit margin ratio over 2021 year is the increase in operating profitability measured by EBIT margin ratio.