Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Nike Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
The profitability metrics demonstrate a complex pattern of fluctuations over the analyzed period. Initially, the metrics generally increased from August 2020 to May 2021, followed by a period of decline and stabilization before experiencing further decreases in the most recent quarters. This suggests a potential shift in the company’s operational efficiency or market conditions impacting its profitability.
- Gross Profit Margin
- The gross profit margin exhibited an upward trend, increasing from 43.15% in August 2020 to a peak of 46.20% in February 2022. Subsequently, a consistent downward trend emerged, culminating in 41.13% in May 2024 and further declining to 41.94% in February 2025. This indicates potential pressures on cost of goods sold or pricing strategies.
- Operating Profit Margin
- The operating profit margin showed significant improvement from 8.94% in August 2020 to a high of 15.79% in August 2021. Following this peak, the margin experienced a gradual decline, reaching 10.30% in February 2025. This suggests increasing operating expenses relative to revenue or a weakening of the company’s competitive advantage. The decline is more pronounced in the later periods.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin increased substantially from 7.20% in August 2020 to 13.32% in November 2021. A subsequent decline was observed, with the margin falling to 5.43% in May 2024 and 6.95% in February 2025. This decline mirrors the trends in gross and operating margins, indicating a comprehensive impact on overall profitability.
- Return on Equity (ROE)
- ROE demonstrated a strong initial increase, peaking at 44.86% in May 2021. The metric then fluctuated, generally trending downwards to 24.36% in February 2025. This suggests a diminishing ability to generate profits from shareholder investments. The volatility in ROE may be linked to changes in net income and equity levels.
- Return on Assets (ROA)
- ROA followed a similar pattern to ROE, increasing from 8.09% in August 2020 to 16.04% in August 2021, and then declining to 6.68% in May 2024 and 7.75% in February 2025. This indicates a decreasing efficiency in utilizing assets to generate profits. The decline in ROA aligns with the observed decreases in profitability margins.
In summary, the analyzed period reveals a peak in profitability around the first half of 2021, followed by a consistent decline across all measured ratios. This trend warrants further investigation to identify the underlying causes and potential mitigation strategies. The more recent quarters show a particularly concerning downward trajectory, suggesting increasing challenges to maintaining profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Nike Inc., gross profit margin calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | 5,045) | 4,943) | 4,469) | 4,675) | 5,389) | 5,257) | 5,634) | 5,562) | 5,971) | 5,720) | 5,595) | 5,371) | 5,711) | 5,615) | 5,503) | 5,067) | 5,213) | 5,696) | 5,655) | 4,719) | 4,847) | 4,741) | |||||||
| Revenues | 12,427) | 11,720) | 11,097) | 11,269) | 12,354) | 11,589) | 12,606) | 12,429) | 13,388) | 12,939) | 12,825) | 12,390) | 13,315) | 12,687) | 12,234) | 10,871) | 11,357) | 12,248) | 12,344) | 10,357) | 11,243) | 10,594) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 41.13% | 41.94% | 42.73% | 43.82% | 44.60% | 44.84% | 44.56% | 44.30% | 43.96% | 43.52% | 43.52% | 43.85% | 44.59% | 45.38% | 45.98% | 46.20% | 45.96% | 45.28% | 44.82% | 43.26% | 42.91% | 43.15% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 59.10% | 59.34% | 59.22% | 58.85% | 58.54% | 58.34% | 58.31% | 56.97% | 56.75% | 56.16% | 55.39% | 56.25% | 56.53% | 56.88% | 57.68% | 57.80% | 57.62% | 56.87% | 55.98% | 55.58% | 55.31% | 55.50% | |||||||
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q2 2026 Calculation
Gross profit margin = 100
× (Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × (5,045 + 4,943 + 4,469 + 4,675)
÷ (12,427 + 11,720 + 11,097 + 11,269)
= 41.13%
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally upward trend from the period ending August 31, 2020, through February 28, 2022, followed by a period of fluctuation and eventual decline. Initial observations indicate a strengthening of profitability during the earlier part of the analyzed timeframe, with a subsequent period of increased volatility.
- Initial Growth Phase (Aug 31, 2020 – Feb 28, 2022)
- The gross profit margin began at 43.15% in August 2020 and generally increased, reaching a peak of 46.20% by February 2022. This suggests improving efficiency in production, better pricing strategies, or a shift towards higher-margin products during this period. The increase was not strictly linear, with some minor fluctuations, but the overall direction was positive.
- Period of Fluctuations (May 31, 2022 – Feb 29, 2024)
- Following the peak in February 2022, the gross profit margin experienced increased volatility. It decreased to 44.59% by November 2022, then recovered to 44.56% by May 2024. This period suggests potential challenges in maintaining the previously achieved profitability levels, possibly due to increased costs of goods sold, promotional activities, or changing product mix. The margin remained relatively stable between 43.82% and 44.84% during this time.
- Downward Trend (May 31, 2024 – Nov 30, 2025)
- From May 2024 onwards, a clear downward trend in the gross profit margin is observed. The margin declined from 44.56% to 42.73% by November 2025. This decrease could be attributed to factors such as increased raw material costs, heightened competition, or a greater proportion of sales from lower-margin products. The most recent reported margin, 41.13% in November 2025, represents the lowest point in the analyzed period.
- Gross Profit and Revenue Relationship
- While the gross profit margin is declining, the gross profit in US$ millions has generally remained stable, with some growth. Revenues also show fluctuations, but generally remain at a high level. The decline in margin, despite relatively stable gross profit, suggests that revenue growth is not translating into proportional increases in profitability, indicating potential cost pressures.
In summary, the gross profit margin demonstrated a period of growth followed by increasing instability and a recent decline. Further investigation into the underlying cost structure and revenue mix is recommended to understand the drivers behind these trends and inform strategic decision-making.
Operating Profit Margin
Nike Inc., operating profit margin calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income | 1,006) | 927) | 321) | 788) | 1,384) | 1,209) | 1,546) | 1,336) | 1,825) | 1,604) | 1,221) | 1,412) | 1,587) | 1,695) | 1,468) | 1,629) | 1,454) | 2,124) | 1,913) | 1,678) | 1,580) | 1,766) | |||||||
| Revenues | 12,427) | 11,720) | 11,097) | 11,269) | 12,354) | 11,589) | 12,606) | 12,429) | 13,388) | 12,939) | 12,825) | 12,390) | 13,315) | 12,687) | 12,234) | 10,871) | 11,357) | 12,248) | 12,344) | 10,357) | 11,243) | 10,594) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 6.54% | 7.36% | 7.99% | 10.30% | 11.18% | 11.83% | 12.29% | 11.61% | 11.76% | 11.32% | 11.55% | 12.17% | 12.99% | 13.25% | 14.29% | 15.21% | 15.48% | 15.79% | 15.58% | 10.87% | 9.67% | 8.94% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 22.88% | 23.36% | 23.67% | 23.35% | 22.27% | 22.02% | 22.17% | 16.69% | 17.51% | 17.29% | 16.38% | 21.49% | 21.38% | 21.07% | 21.31% | 20.50% | 20.78% | 19.71% | 18.63% | 19.13% | 19.37% | 20.60% | |||||||
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q2 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × (1,006 + 927 + 321 + 788)
÷ (12,427 + 11,720 + 11,097 + 11,269)
= 6.54%
2 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the analyzed period, spanning from August 2020 to November 2025. Initially, the margin demonstrated an upward trajectory, peaking in the May 2021 period. Subsequently, a general decline in the operating profit margin was observed, with periods of stabilization and minor increases interspersed.
- Initial Growth Phase (Aug 31, 2020 – May 31, 2021)
- The operating profit margin increased from 8.94% in August 2020 to a high of 15.58% in May 2021. This period reflects a substantial improvement in profitability, potentially driven by increased revenue and effective cost management. The margin consistently exceeded 15% from February 2021 onwards within this phase.
- Subsequent Decline and Stabilization (Aug 31, 2021 – May 31, 2023)
- Following the peak in May 2021, the operating profit margin began a downward trend, although it remained relatively stable between 11% and 15%. A noticeable decrease occurred in November 2021, followed by a period of fluctuation. The margin settled around the 11% to 12% range throughout much of 2022 and the first half of 2023. This suggests potential pressures on profitability, possibly related to rising costs or increased competition.
- Accelerated Decline (Aug 31, 2023 – Nov 30, 2025)
- A more pronounced decline in the operating profit margin became evident from August 2023. The margin decreased from 11.76% to 7.99% by February 2025, reaching a low of 6.54% in May 2025 before a slight recovery to 7.99% in November 2025. This recent trend indicates increasing challenges in maintaining profitability, potentially stemming from macroeconomic factors, shifts in consumer demand, or internal operational issues. The operating income decreased significantly while revenues remained relatively stable during this period.
Overall, the operating profit margin demonstrates a cyclical pattern with a clear peak in early 2021 followed by a sustained decline. The recent trend warrants further investigation to identify the underlying causes and implement strategies to restore profitability.
Net Profit Margin
Nike Inc., net profit margin calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income | 792) | 727) | 211) | 794) | 1,163) | 1,051) | 1,500) | 1,172) | 1,578) | 1,450) | 1,031) | 1,240) | 1,331) | 1,468) | 1,439) | 1,396) | 1,337) | 1,874) | 1,509) | 1,449) | 1,251) | 1,518) | |||||||
| Revenues | 12,427) | 11,720) | 11,097) | 11,269) | 12,354) | 11,589) | 12,606) | 12,429) | 13,388) | 12,939) | 12,825) | 12,390) | 13,315) | 12,687) | 12,234) | 10,871) | 11,357) | 12,248) | 12,344) | 10,357) | 11,243) | 10,594) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 5.43% | 6.23% | 6.95% | 9.43% | 9.98% | 10.60% | 11.10% | 10.14% | 10.28% | 9.82% | 9.90% | 10.82% | 11.47% | 11.96% | 12.94% | 13.06% | 13.32% | 13.17% | 12.86% | 8.90% | 7.39% | 7.20% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 16.38% | 16.82% | 17.14% | 17.05% | 16.34% | 16.09% | 16.12% | 10.89% | 11.40% | 11.24% | 10.54% | 15.66% | 15.60% | 15.36% | 15.59% | 14.87% | 14.96% | 14.17% | 13.38% | 13.69% | 13.94% | 15.01% | |||||||
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q2 2026 Calculation
Net profit margin = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
= 100 × (792 + 727 + 211 + 794)
÷ (12,427 + 11,720 + 11,097 + 11,269)
= 5.43%
2 Click competitor name to see calculations.
The net profit margin exhibited considerable fluctuation over the observed period. Initially, the margin demonstrated a slight increase from 7.20% in August 2020 to 7.39% in November 2020. A more substantial rise followed, peaking at 13.17% in August 2021, before stabilizing around the 12-13% range through February 2022. Subsequently, a consistent downward trend became apparent.
- Overall Trend
- From February 2022 through November 2023, the net profit margin generally declined. While there were minor fluctuations, the overall trajectory pointed downwards, falling from 13.06% to 10.28%. A more pronounced decrease occurred in the latter part of the period, with the margin dropping below 10% in August 2024 and continuing to decline significantly in subsequent quarters.
- Recent Performance (2024-2025)
- The period from August 2024 to November 2025 reveals a sharp deterioration in net profit margin. The margin decreased from 9.98% in August 2024 to 6.95% in February 2025, and further to 5.43% in May 2025. The most recent reported value, for November 2025, shows a margin of only 5.43%, representing the lowest point in the observed timeframe.
The initial increase in net profit margin, culminating in 2021, suggests improved cost management or increased pricing power during that period. However, the subsequent decline indicates potential pressures on profitability, possibly stemming from rising input costs, increased competition, or shifts in sales mix. The significant drop in the most recent quarters warrants further investigation to determine the underlying causes and potential mitigation strategies.
- Peak and Trough
- The highest net profit margin recorded was 13.32% in November 2021. Conversely, the lowest net profit margin observed was 5.43% in May 2025 and again in November 2025.
The relationship between revenues and net income should be examined in conjunction with this margin analysis to provide a more complete understanding of the company’s financial performance. While revenues remained relatively stable overall, the decreasing net profit margin suggests that revenue growth is not translating into proportional gains in profitability.
Return on Equity (ROE)
Nike Inc., ROE calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income | 792) | 727) | 211) | 794) | 1,163) | 1,051) | 1,500) | 1,172) | 1,578) | 1,450) | 1,031) | 1,240) | 1,331) | 1,468) | 1,439) | 1,396) | 1,337) | 1,874) | 1,509) | 1,449) | 1,251) | 1,518) | |||||||
| Shareholders’ equity | 14,085) | 13,468) | 13,213) | 14,007) | 14,037) | 13,944) | 14,430) | 14,226) | 14,146) | 13,971) | 14,004) | 14,531) | 15,272) | 15,822) | 15,281) | 14,809) | 14,924) | 14,343) | 12,767) | 11,931) | 10,640) | 9,224) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 17.92% | 21.50% | 24.36% | 32.18% | 34.81% | 38.02% | 39.50% | 36.77% | 37.46% | 36.16% | 36.20% | 37.70% | 36.89% | 35.65% | 39.57% | 41.30% | 41.34% | 42.41% | 44.86% | 28.73% | 26.56% | 29.16% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 40.70% | 42.14% | 41.97% | 43.55% | 40.49% | 37.47% | 36.63% | 28.38% | 28.51% | 28.77% | 27.15% | 38.48% | 38.55% | 38.24% | 35.60% | 32.75% | 30.94% | 26.71% | 23.02% | 25.76% | 26.96% | 31.46% | |||||||
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q2 2026 Calculation
ROE = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Shareholders’ equity
= 100 × (792 + 727 + 211 + 794)
÷ 14,085 = 17.92%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the observed period, generally trending downwards from a peak in 2021 before stabilizing in the mid-30s, and then declining significantly in the most recent quarters. Initial values demonstrated a strong ROE, followed by a period of volatility and eventual decline.
- Initial Period (Aug 31, 2020 – May 31, 2021)
- ROE began at 29.16% and experienced a moderate decrease to 26.56% before rising sharply to 44.86% by May 31, 2021. This substantial increase suggests a significant improvement in profitability relative to shareholder equity during this timeframe. The subsequent quarter showed a slight decrease, but remained high at 42.41%.
- Peak and Subsequent Decline (Aug 31, 2021 – Feb 28, 2023)
- ROE remained above 40% through November 30, 2021, peaking at 42.41%. A gradual decline was then observed, moving from 41.34% to 36.89% by November 30, 2022. This downward trend continued into February 28, 2023, reaching 37.70%. While still a relatively strong return, the consistent decrease indicates a weakening in the relationship between net income and shareholder equity.
- Recent Performance (May 31, 2023 – Nov 30, 2025)
- From May 31, 2023, ROE began a more pronounced decline. It decreased from 36.20% to 24.36% by February 28, 2025, and further to 17.92% by November 30, 2025. This represents a substantial reduction in profitability relative to equity, potentially signaling challenges in maintaining earnings or efficient capital utilization. The decline appears to be accelerating in the most recent periods.
- Net Income and Equity Relationship
- While both net income and shareholder equity generally increased over the period, the rate of increase in net income appears to have slowed relative to the growth in shareholder equity in the later periods, contributing to the observed decline in ROE. Fluctuations in net income also played a role, with lower net income figures in several recent quarters directly impacting the ROE calculation.
In summary, the ROE demonstrates a pattern of initial strength, followed by a period of stability at a high level, and ultimately a significant and accelerating decline in recent quarters. This trend warrants further investigation to determine the underlying causes and potential implications for future performance.
Return on Assets (ROA)
Nike Inc., ROA calculation (quarterly data)
| Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income | 792) | 727) | 211) | 794) | 1,163) | 1,051) | 1,500) | 1,172) | 1,578) | 1,450) | 1,031) | 1,240) | 1,331) | 1,468) | 1,439) | 1,396) | 1,337) | 1,874) | 1,509) | 1,449) | 1,251) | 1,518) | |||||||
| Total assets | 37,787) | 37,334) | 36,579) | 37,793) | 37,959) | 37,867) | 38,110) | 37,356) | 37,203) | 36,786) | 37,531) | 38,294) | 39,647) | 41,088) | 40,321) | 39,577) | 38,917) | 37,917) | 37,740) | 36,185) | 34,836) | 33,258) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 6.68% | 7.75% | 8.80% | 11.93% | 12.87% | 14.00% | 14.96% | 14.00% | 14.24% | 13.73% | 13.51% | 14.31% | 14.21% | 13.73% | 14.99% | 15.45% | 15.85% | 16.04% | 15.17% | 9.47% | 8.11% | 8.09% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | 23.74% | 24.33% | 23.87% | 24.50% | 24.21% | 23.16% | 21.86% | 16.61% | 16.81% | 17.14% | 15.25% | 22.03% | 22.39% | 21.72% | 19.73% | 19.04% | 18.76% | 16.29% | 14.07% | 15.36% | 15.44% | 18.04% | |||||||
Based on: 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q2 2026 Calculation
ROA = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Total assets
= 100 × (792 + 727 + 211 + 794)
÷ 37,787 = 6.68%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally positive trajectory over the observed period, although with notable fluctuations. Initial values hovered around 8.09% and 8.11% in August 2020 and November 2020, respectively. A significant increase is then observed, peaking at 16.04% in August 2021, before remaining relatively high through February 2022 at 15.45%. A gradual decline commenced in May 2022, continuing through to February 2025, where the ROA reached 6.68%.
- Initial Growth Phase (Aug 31, 2020 – Feb 28, 2022)
- From the initial observation point, the ROA demonstrated consistent growth. The increase from 8.09% to 15.45% suggests improved efficiency in utilizing assets to generate profit during this period. This could be attributed to factors such as increased sales, improved cost management, or a combination of both. The peak in August 2021 and sustained high levels into early 2022 indicate a period of strong financial performance.
- Decline Phase (May 31, 2022 – Feb 28, 2025)
- Following February 2022, a consistent downward trend in ROA is apparent. The decline from 14.99% to 6.68% suggests a diminishing ability to generate profits from the existing asset base. This could be due to several factors, including increased costs, decreased sales, or an increase in total assets without a corresponding increase in net income. The rate of decline appears to accelerate towards the end of the period.
- Recent Performance (Aug 31, 2024 – Feb 28, 2025)
- The most recent quarterly results indicate a continued decline in ROA. The values of 14.00%, 12.87%, 11.93%, 8.80%, 7.75% and 6.68% demonstrate a clear weakening of profitability relative to asset investment. The ROA in February 2025 is the lowest observed throughout the entire period, signaling a potential need for strategic adjustments to improve asset utilization and profitability.
- Net Income and Total Assets Relationship
- While the ROA analysis focuses on the ratio itself, it is important to note that both net income and total assets influence this metric. Fluctuations in either component will impact the ROA. The observed decline in ROA is not necessarily indicative of poor performance in either net income or total assets alone, but rather a relative change between the two. Further investigation into the drivers of these changes is warranted.