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

Nike Inc. (NYSE:NKE)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Nike Inc., profitability ratios

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Return on Sales
Gross profit margin 43.42% 44.67% 43.84% 44.58% 46.24% 45.97%
Operating profit margin 8.33% 12.20% 12.21% 13.83% 13.91% 13.64%
Net profit margin 6.79% 10.30% 5.31% 12.34% 11.61% 10.70%
Return on Investment
Return on equity (ROE) 31.52% 44.57% 19.70% 34.17% 30.67% 25.76%
Return on assets (ROA) 8.10% 16.99% 8.58% 18.23% 17.57% 15.15%

Based on: 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), 10-K (filing date: 2015-07-23).

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.’s gross profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Nike Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Nike Inc.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Nike Inc.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
ROA A profitability ratio calculated as net income divided by total assets. Nike Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Gross Profit Margin

Nike Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 16,241  17,474  15,956  15,312  14,971  14,067 
Revenues 37,403  39,117  36,397  34,350  32,376  30,601 
Profitability Ratio
Gross profit margin1 43.42% 44.67% 43.84% 44.58% 46.24% 45.97%
Benchmarks
Gross Profit Margin, Competitors2
Colgate-Palmolive Co. 60.82% 59.42% 59.39% 60.05% 60.04%
Estée Lauder Cos. Inc. 75.15% 77.21% 79.22% 79.39% 80.63% 80.51%
Kimberly-Clark Corp. 35.64% 32.71% 30.28% 35.89% 36.54%

Based on: 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), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 16,241 ÷ 37,403 = 43.42%

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.’s gross profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Operating Profit Margin

Nike Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Operating income 3,115  4,772  4,445  4,749  4,502  4,175 
Revenues 37,403  39,117  36,397  34,350  32,376  30,601 
Profitability Ratio
Operating profit margin1 8.33% 12.20% 12.21% 13.83% 13.91% 13.64%
Benchmarks
Operating Profit Margin, Competitors2
Colgate-Palmolive Co. 23.59% 22.65% 23.76% 23.22% 25.25%
Estée Lauder Cos. Inc. 4.24% 15.56% 15.00% 14.31% 14.30% 14.90%
Kimberly-Clark Corp. 16.95% 16.21% 12.06% 18.07% 18.22%
Operating Profit Margin, Sector
Personal Goods 12.43% 15.47% 14.77% 16.68% 17.22%
Operating Profit Margin, Industry
Consumer Goods 15.48% 13.12% 13.83% 15.13% 14.25%

Based on: 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), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 3,115 ÷ 37,403 = 8.33%

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.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Net Profit Margin

Nike Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Revenues 37,403  39,117  36,397  34,350  32,376  30,601 
Profitability Ratio
Net profit margin1 6.79% 10.30% 5.31% 12.34% 11.61% 10.70%
Benchmarks
Net Profit Margin, Competitors2
Colgate-Palmolive Co. 16.36% 15.08% 15.44% 13.10% 16.06%
Estée Lauder Cos. Inc. 4.79% 12.01% 8.10% 10.56% 9.90% 10.10%
Kimberly-Clark Corp. 12.29% 11.69% 7.63% 12.48% 11.90%
Net Profit Margin, Sector
Personal Goods 9.47% 11.73% 8.15% 12.26% 12.31%
Net Profit Margin, Industry
Consumer Goods 11.43% 8.77% 11.59% 8.53% 12.03%

Based on: 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), 10-K (filing date: 2015-07-23).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 2,539 ÷ 37,403 = 6.79%

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.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Equity (ROE)

Nike Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Shareholders’ equity 8,055  9,040  9,812  12,407  12,258  12,707 
Profitability Ratio
ROE1 31.52% 44.57% 19.70% 34.17% 30.67% 25.76%
Benchmarks
ROE, Competitors2
Colgate-Palmolive Co. 362.72% 2,023.08%
Estée Lauder Cos. Inc. 17.38% 40.70% 23.63% 28.49% 31.20% 29.89%
Kimberly-Clark Corp. 375.72% 362.16%
ROE, Sector
Personal Goods 61.91% 76.52% 48.55% 56.40% 61.23%
ROE, Industry
Consumer Goods 31.95% 26.80% 34.61% 25.11% 34.45%

Based on: 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), 10-K (filing date: 2015-07-23).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,539 ÷ 8,055 = 31.52%

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.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Assets (ROA)

Nike Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Total assets 31,342  23,717  22,536  23,259  21,396  21,600 
Profitability Ratio
ROA1 8.10% 16.99% 8.58% 18.23% 17.57% 15.15%
Benchmarks
ROA, Competitors2
Colgate-Palmolive Co. 16.93% 15.74% 19.74% 15.97% 20.14%
Estée Lauder Cos. Inc. 3.85% 13.57% 8.82% 10.80% 12.08% 13.22%
Kimberly-Clark Corp. 13.42% 14.11% 9.71% 15.04% 14.83%
ROA, Sector
Personal Goods 10.02% 15.39% 11.09% 15.63% 16.53%
ROA, Industry
Consumer Goods 7.21% 6.06% 8.09% 5.90% 8.70%

Based on: 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), 10-K (filing date: 2015-07-23).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,539 ÷ 31,342 = 8.10%

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.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.