Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Nike Inc., profitability ratios
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Nike Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Nike Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Nike Inc. net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
Nike Inc., gross profit margin calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 22,887) | 22,292) | 21,479) | 19,962) | 16,241) | 17,474) | |
| Revenues | 51,362) | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 44.56% | 43.52% | 45.98% | 44.82% | 43.42% | 44.67% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 58.31% | 55.39% | 57.68% | 55.98% | 55.87% | — | |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 22,887 ÷ 51,362 = 44.56%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Nike Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Operating Profit Margin
Nike Inc., operating profit margin calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 6,311) | 5,915) | 6,675) | 6,937) | 3,115) | 4,772) | |
| Revenues | 51,362) | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 12.29% | 11.55% | 14.29% | 15.58% | 8.33% | 12.20% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 22.17% | 16.38% | 21.31% | 18.63% | 22.34% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | 13.85% | 12.21% | 15.12% | 15.85% | 9.68% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 11.04% | 9.12% | 8.47% | 8.79% | 6.48% | — | |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,311 ÷ 51,362 = 12.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Nike Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Net Profit Margin
Nike Inc., net profit margin calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,700) | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | |
| Revenues | 51,362) | 51,217) | 46,710) | 44,538) | 37,403) | 39,117) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 11.10% | 9.90% | 12.94% | 12.86% | 6.79% | 10.30% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| lululemon athletica inc. | 16.12% | 10.54% | 15.59% | 13.38% | 16.22% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Durables & Apparel | 11.89% | 9.99% | 13.26% | 12.91% | 7.70% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 8.74% | 7.92% | 5.15% | 9.20% | 5.24% | — | |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,700 ÷ 51,362 = 11.10%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Nike Inc. net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Return on Equity (ROE)
Nike Inc., ROE calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,700) | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | |
| Shareholders’ equity | 14,430) | 14,004) | 15,281) | 12,767) | 8,055) | 9,040) | |
| Profitability Ratio | |||||||
| ROE1 | 39.50% | 36.20% | 39.57% | 44.86% | 31.52% | 44.57% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| lululemon athletica inc. | 36.63% | 27.15% | 35.60% | 23.02% | 33.07% | — | |
| ROE, Sector | |||||||
| Consumer Durables & Apparel | 38.85% | 34.54% | 38.96% | 41.21% | 31.82% | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 28.36% | 30.61% | 21.65% | 34.37% | 25.29% | — | |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 5,700 ÷ 14,430 = 39.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Return on Assets (ROA)
Nike Inc., ROA calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 5,700) | 5,070) | 6,046) | 5,727) | 2,539) | 4,029) | |
| Total assets | 38,110) | 37,531) | 40,321) | 37,740) | 31,342) | 23,717) | |
| Profitability Ratio | |||||||
| ROA1 | 14.96% | 13.51% | 14.99% | 15.17% | 8.10% | 16.99% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| lululemon athletica inc. | 21.86% | 15.25% | 19.73% | 14.07% | 19.67% | — | |
| ROA, Sector | |||||||
| Consumer Durables & Apparel | 16.04% | 13.73% | 15.51% | 15.06% | 9.20% | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 8.18% | 7.66% | 4.94% | 8.07% | 4.42% | — | |
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,700 ÷ 38,110 = 14.96%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |