Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Nike Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Nike Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Profitability ratio | Description | The company |
---|---|---|
ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Gross Profit Margin
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 19,962 ÷ 44,538 = 44.82%
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Operating Profit Margin
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,937 ÷ 44,538 = 15.58%
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Profit Margin
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
1 2021 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,727 ÷ 44,538 = 12.86%
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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Equity (ROE)
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 5,727 ÷ 12,767 = 44.86%
Profitability ratio | Description | The company |
---|---|---|
ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Nike Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Assets (ROA)
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,727 ÷ 37,740 = 15.17%
Profitability ratio | Description | The company |
---|---|---|
ROA | A profitability ratio calculated as net income divided by total assets. | Nike Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |