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
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Nike Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
May 31, 2020 31.52% = 8.10% × 3.89
Feb 29, 2020 47.74% = 16.47% × 2.90
Nov 30, 2019 48.89% = 17.19% × 2.84
Aug 31, 2019 46.78% = 16.40% × 2.85
May 31, 2019 44.57% = 16.99% × 2.62
Feb 28, 2019 46.61% = 18.22% × 2.56
Nov 30, 2018 24.69% = 9.50% × 2.60
Aug 31, 2018 23.08% = 9.23% × 2.50
May 31, 2018 19.70% = 8.58% × 2.30
Feb 28, 2018 18.44% = 8.00% × 2.31
Nov 30, 2017 32.88% = 16.07% × 2.05
Aug 31, 2017 32.86% = 16.67% × 1.97
May 31, 2017 34.17% = 18.23% × 1.87
Feb 28, 2017 32.05% = 17.61% × 1.82
Nov 30, 2016 31.54% = 17.16% × 1.84
Aug 31, 2016 31.48% = 18.10% × 1.74
May 31, 2016 30.67% = 17.57% × 1.75
Feb 29, 2016 30.72% = 18.01% × 1.71
Nov 30, 2015 27.00% = 16.03% × 1.68
Aug 31, 2015 27.07% = 16.81% × 1.61
May 31, 2015 25.76% = 15.15% × 1.70
Feb 28, 2015 — = — × 1.66
Nov 30, 2014 — = — × 1.64
Aug 31, 2014 — = — × 1.67

Based on: 10-K (filing date: 2020-07-24), 10-Q (filing date: 2020-04-07), 10-Q (filing date: 2020-01-07), 10-Q (filing date: 2019-10-04), 10-K (filing date: 2019-07-23), 10-Q (filing date: 2019-04-04), 10-Q (filing date: 2019-01-08), 10-Q (filing date: 2018-10-05), 10-K (filing date: 2018-07-25), 10-Q (filing date: 2018-04-05), 10-Q (filing date: 2018-01-05), 10-Q (filing date: 2017-10-06), 10-K (filing date: 2017-07-20), 10-Q (filing date: 2017-04-04), 10-Q (filing date: 2017-01-05), 10-Q (filing date: 2016-10-11), 10-K (filing date: 2016-07-21), 10-Q (filing date: 2016-04-05), 10-Q (filing date: 2016-01-06), 10-Q (filing date: 2015-10-06), 10-K (filing date: 2015-07-23), 10-Q (filing date: 2015-04-07), 10-Q (filing date: 2015-01-07), 10-Q (filing date: 2014-10-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2020 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Nike Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
May 31, 2020 31.52% = 6.79% × 1.19 × 3.89
Feb 29, 2020 47.74% = 10.46% × 1.57 × 2.90
Nov 30, 2019 48.89% = 11.21% × 1.53 × 2.84
Aug 31, 2019 46.78% = 10.81% × 1.52 × 2.85
May 31, 2019 44.57% = 10.30% × 1.65 × 2.62
Feb 28, 2019 46.61% = 10.79% × 1.69 × 2.56
Nov 30, 2018 24.69% = 5.66% × 1.68 × 2.60
Aug 31, 2018 23.08% = 5.57% × 1.66 × 2.50
May 31, 2018 19.70% = 5.31% × 1.62 × 2.30
Feb 28, 2018 18.44% = 5.11% × 1.56 × 2.31
Nov 30, 2017 32.88% = 11.13% × 1.44 × 2.05
Aug 31, 2017 32.86% = 11.47% × 1.45 × 1.97
May 31, 2017 34.17% = 12.34% × 1.48 × 1.87
Feb 28, 2017 32.05% = 12.02% × 1.46 × 1.82
Nov 30, 2016 31.54% = 11.60% × 1.48 × 1.84
Aug 31, 2016 31.48% = 11.60% × 1.56 × 1.74
May 31, 2016 30.67% = 11.61% × 1.51 × 1.75
Feb 29, 2016 30.72% = 11.84% × 1.52 × 1.71
Nov 30, 2015 27.00% = 11.55% × 1.39 × 1.68
Aug 31, 2015 27.07% = 11.25% × 1.49 × 1.61
May 31, 2015 25.76% = 10.70% × 1.42 × 1.70
Feb 28, 2015 — = — × — × 1.66
Nov 30, 2014 — = — × — × 1.64
Aug 31, 2014 — = — × — × 1.67

Based on: 10-K (filing date: 2020-07-24), 10-Q (filing date: 2020-04-07), 10-Q (filing date: 2020-01-07), 10-Q (filing date: 2019-10-04), 10-K (filing date: 2019-07-23), 10-Q (filing date: 2019-04-04), 10-Q (filing date: 2019-01-08), 10-Q (filing date: 2018-10-05), 10-K (filing date: 2018-07-25), 10-Q (filing date: 2018-04-05), 10-Q (filing date: 2018-01-05), 10-Q (filing date: 2017-10-06), 10-K (filing date: 2017-07-20), 10-Q (filing date: 2017-04-04), 10-Q (filing date: 2017-01-05), 10-Q (filing date: 2016-10-11), 10-K (filing date: 2016-07-21), 10-Q (filing date: 2016-04-05), 10-Q (filing date: 2016-01-06), 10-Q (filing date: 2015-10-06), 10-K (filing date: 2015-07-23), 10-Q (filing date: 2015-04-07), 10-Q (filing date: 2015-01-07), 10-Q (filing date: 2014-10-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2020 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Nike Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
May 31, 2020 8.10% = 6.79% × 1.19
Feb 29, 2020 16.47% = 10.46% × 1.57
Nov 30, 2019 17.19% = 11.21% × 1.53
Aug 31, 2019 16.40% = 10.81% × 1.52
May 31, 2019 16.99% = 10.30% × 1.65
Feb 28, 2019 18.22% = 10.79% × 1.69
Nov 30, 2018 9.50% = 5.66% × 1.68
Aug 31, 2018 9.23% = 5.57% × 1.66
May 31, 2018 8.58% = 5.31% × 1.62
Feb 28, 2018 8.00% = 5.11% × 1.56
Nov 30, 2017 16.07% = 11.13% × 1.44
Aug 31, 2017 16.67% = 11.47% × 1.45
May 31, 2017 18.23% = 12.34% × 1.48
Feb 28, 2017 17.61% = 12.02% × 1.46
Nov 30, 2016 17.16% = 11.60% × 1.48
Aug 31, 2016 18.10% = 11.60% × 1.56
May 31, 2016 17.57% = 11.61% × 1.51
Feb 29, 2016 18.01% = 11.84% × 1.52
Nov 30, 2015 16.03% = 11.55% × 1.39
Aug 31, 2015 16.81% = 11.25% × 1.49
May 31, 2015 15.15% = 10.70% × 1.42
Feb 28, 2015 — = — × —
Nov 30, 2014 — = — × —
Aug 31, 2014 — = — × —

Based on: 10-K (filing date: 2020-07-24), 10-Q (filing date: 2020-04-07), 10-Q (filing date: 2020-01-07), 10-Q (filing date: 2019-10-04), 10-K (filing date: 2019-07-23), 10-Q (filing date: 2019-04-04), 10-Q (filing date: 2019-01-08), 10-Q (filing date: 2018-10-05), 10-K (filing date: 2018-07-25), 10-Q (filing date: 2018-04-05), 10-Q (filing date: 2018-01-05), 10-Q (filing date: 2017-10-06), 10-K (filing date: 2017-07-20), 10-Q (filing date: 2017-04-04), 10-Q (filing date: 2017-01-05), 10-Q (filing date: 2016-10-11), 10-K (filing date: 2016-07-21), 10-Q (filing date: 2016-04-05), 10-Q (filing date: 2016-01-06), 10-Q (filing date: 2015-10-06), 10-K (filing date: 2015-07-23), 10-Q (filing date: 2015-04-07), 10-Q (filing date: 2015-01-07), 10-Q (filing date: 2014-10-07).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2020 is the decrease in profitability measured by net profit margin ratio.