Nike Inc. (NYSE:NKE)

Return on Assets (ROA)

The ROA showed an initial increase from 8.09% in August 2020 to a peak of 16.04% in August 2021, indicating improved asset profitability during this period. After this peak, there was a gradual decline with some fluctuations, reaching 14.24% in November 2023. Subsequently, ROA demonstrated a more pronounced downward trend, dropping to 7.75% by August 2025. This decline suggests diminishing efficiency in generating earnings from the company’s assets over the later periods.

Financial Leverage

Financial leverage decreased from 3.61 in August 2020 to around 2.63 by November 2023, reflecting a reduction in the use of debt relative to equity. Post-November 2023, the leverage ratio slightly increased, stabilizing around 2.7 to 2.77 towards August 2025. Overall, the leverage levels remained moderate, indicating a relatively conservative approach to financing during the majority of the observed periods.

Return on Equity (ROE)

ROE exhibited notable volatility, rising sharply from 29.16% in August 2020 to a high of 44.86% in May 2021. Following this peak, ROE gradually declined with intermittent minor recoveries, registering 37.46% in November 2023. A significant downtrend became evident afterwards, with ROE falling to 21.5% by August 2025. The decline in ROE corresponds partially with the drop in ROA, although the fall in ROE appears more pronounced, suggesting factors beyond asset efficiency, potentially changes in financial leverage or profitability margins, influenced shareholder returns.

The financial trends indicate varying performance across key profitability and efficiency metrics over the examined periods.

Net Profit Margin

The net profit margin showed an overall increase from 7.2% initially to a peak above 13% by late 2021. Subsequently, it experienced a gradual decline, reaching below 7% by the last recorded period. This suggests a reduction in profitability relative to revenue after a strong peak, indicating potential margin pressures or increased costs in recent years.

Asset Turnover

The asset turnover ratio demonstrated moderate fluctuations but with a generally upward trend from about 1.12 initially to a peak around 1.4 in mid-2023. After this peak, the ratio slightly decreased but remained above starting levels, indicating improved efficiency in using assets to generate sales over time.

Financial Leverage

Financial leverage declined significantly from an initial level of approximately 3.61 to about 2.6 by 2020-2021, indicating a reduction in reliance on debt or other liabilities relative to equity. After this decline, the leverage remained relatively stable with minor increases, hovering around 2.6 to 2.77, suggesting a consistent capital structure with moderate leverage during the latter periods.

Return on Equity (ROE)

The return on equity exhibited considerable variation, initially rising from around 29% to a high of nearly 45% in mid-2021, reflecting enhanced profitability and effective use of equity. However, after this peak, ROE trended downward, reaching just above 21% by the end of the data series. This decline corresponds with decreasing net profit margins and reflects challenges in maintaining high returns on shareholder equity over time.

Overall, the data reveal an initial phase of improving profitability and efficiency up to 2021-2023, followed by a period of declining margins and returns, despite relatively stable asset utilization and financial leverage. This suggests external or internal factors affecting profit generation, while operational efficiency and capital structure remained relatively consistent.

Net Profit Margin

Over the observed periods, the net profit margin exhibited a generally increasing trend from 7.2% to a peak around 13.32% in late 2021. Following this peak, there was a gradual decline in margin, dropping steadily through 2023 and into 2025, reaching approximately 6.23% by mid-2025. This pattern indicates that profitability relative to sales strengthened significantly in the earlier periods but faced challenges beyond 2021, leading to diminished margins in the more recent quarters.

Asset Turnover

Asset turnover started at a ratio of approximately 1.12 in mid-2020 and experienced minor fluctuations initially, settling near 1.18 by mid-2021. From late 2021 onwards, the ratio demonstrated a consistent upward trend, peaking at 1.4 in early 2024. Post-peak, a slight decline was observed, but the ratio remained higher than earlier periods, around 1.24 by mid-2025. This suggests gradual improvements in the ability to generate revenue from assets over the majority of the timeline, with some recent softening.

Return on Assets (ROA)

Return on assets showed a strong upward trajectory from 8.09% in mid-2020 to a high exceeding 16% in late 2021, reflecting improved efficiency and profitability. After this peak, ROA steadily decreased over subsequent periods, with notable declines through 2023 and into 2025, reaching about 7.75% in mid-2025. This trend aligns with the patterns observed in net profit margin, indicating that asset profitability was robust during the mid-term but deteriorated more recently.