Nike Inc. (NYSE:NKE)

Gross Profit Margin

The gross profit margin shows a generally stable trend with minor fluctuations over the periods presented. Starting around 43.42%, it increased to a peak near 46.2% before gradually declining to approximately 42.73% by the final period. This indicates a slight weakening in cost management or pricing power towards the end of the timeline.

Operating Profit Margin

The operating profit margin experienced a significant rise from about 8.33% to a peak of roughly 15.79%, reflecting improved operational efficiency or cost control. However, after this peak, a noticeable decline ensued, falling steadily to 7.99% by the last period, suggesting increased operating expenses or margin pressure in more recent quarters.

Net Profit Margin

Net profit margin trends mirror those of the operating margin, initially increasing from 6.79% to about 13.32%, indicating strong bottom-line growth during that phase. Subsequently, there is a gradual decrease down to 6.95%, which might be influenced by rising costs, taxes, or non-operating expenses, affecting overall profitability.

Return on Equity (ROE)

ROE exhibited substantial fluctuations, rising sharply from 26.56% to a high of 44.86%, signaling a period of strong shareholder value creation. Following this high, ROE declined consistently to 24.36%, which points to diminished profitability or higher equity base relative to net income in later periods.

Return on Assets (ROA)

ROA rose from approximately 8.11% to a peak near 16.04%, reflecting more efficient use of assets to generate earnings during the growth phase. After reaching this peak, ROA experienced a downward trajectory, reaching around 8.80%, indicating reduced asset profitability which could be due to increased asset base or lower net income generation.

The quarterly financial data reveal several notable trends in gross profit, revenues, and gross profit margin over the analyzed period.

Revenues

Revenues exhibit a generally positive trend with seasonal fluctuations. Initial quarters before mid-2020 show revenues around the 10,000 to 11,000 million US$ range, then a significant drop in May 2020 to approximately 6,313 million US$, likely reflecting external economic disruptions. Post this dip, revenues recovered steadily, reaching peaks above 13,000 million US$ in late 2021 and mid-2023. However, some volatility is observed with periodic declines, such as in early 2024 and late 2024 quarters, indicating fluctuations in demand or market conditions.

Gross Profit

Gross profit tends to follow a similar pattern to revenues, decreasing sharply in May 2020 to 2,353 million US$ from over 4,400 million US$ in previous quarters. Thereafter, gross profit generally increases, peaking above 5,900 million US$ by late 2023. Despite the upward trajectory, there is some variability, with notable decreases in early 2025 periods. Overall, gross profit shows resilience and recovery after mid-2020 lows but does not maintain a strictly upward trend, reflecting potential operational or market challenges.

Gross Profit Margin

From mid-2020 onwards, the gross profit margin remains relatively stable within a narrow band around 43% to 46%, with a slight overall upward trend during the middle of the period toward 46%, followed by a mild decline back to around 43% by early 2025. This stability suggests consistent cost management relative to revenue, despite fluctuations in absolute gross profit and revenue values. The highest margins occur roughly between late 2021 and mid-2022, indicating improved profitability efficiency in these quarters.

In summary, the data reflect an initial external impact causing a sharp decline in revenue and gross profit around mid-2020, followed by recovery phases with increasing revenues and gross profits. Gross profit margin stability throughout indicates effective cost control amid fluctuating sales volumes. Nonetheless, the later quarters show some softness in the financial metrics, suggesting ongoing challenges in maintaining growth momentum and margin levels.

The financial data reveals several key trends in operating income, revenues, and operating profit margin over the analyzed quarters.

Operating Income

Operating income exhibited significant volatility during the period. It started at 1,543 million USD in August 2019 and declined to negative territory at -838 million USD by May 2020, reflecting a sharp downturn. Following this low, operating income generally recovered, peaking at 2,124 million USD in August 2021. However, after this peak, the figure showed a declining trend with intermittent fluctuations, ending at 321 million USD in May 2025. This indicates challenges in sustaining high profitability levels in the later periods.

Revenues

Revenue trends suggest relative stability with moderate fluctuations. Initial revenue was 10,660 million USD in August 2019, dropping to 6,313 million USD in May 2020, likely impacted by extraordinary circumstances. Subsequent quarters showed recovery and growth, reaching peaks of 13,388 million USD in November 2023. After these peaks, revenues experienced modest decreases and some variability, culminating at 11,097 million USD by May 2025. Overall, revenue trends indicate resilience and a capacity for recovery and growth post downturns.

Operating Profit Margin

Operating profit margin data is not available for all quarters but begins appearing from August 2020 with a margin of 8.33%. Margins increased steadily after this point, reaching a high of 15.79% in November 2021. After that peak, margins gradually declined to 7.99% by May 2025. This trajectory suggests initial efficiency improvements and better cost management, followed by pressure on profit margins in the latter periods, potentially due to increasing costs or pricing dynamics.

In summary, the financial data depicts an initial period of disruption with a strong recovery in operating income and revenue, accompanied by improving profitability margins. Post-recovery, the company faced downward pressure on operating income and margins despite relatively stable revenues, signaling potential operational challenges or margin compression in the most recent quarters.

The data reflects several key financial trends over the observed periods. Revenues show a fluctuating pattern with a notable decline during the May 31, 2020 period, aligning with an external disruption likely impacting sales, followed by recovery and general growth in subsequent quarters. After this dip, revenues generally increase, peaking around November 30, 2022, before showing some volatility and a slight downward trend towards the last reported period.

Net income follows a more volatile trend compared to revenues. It sharply declines into negative territory on May 31, 2020, indicating a substantial loss during that quarter. However, this is followed by a recovery and a pattern of alternating increases and decreases. Net income reaches its highest points in August 31, 2021 and May 31, 2024. After the peak periods, net income exhibits a downward trend towards the final reported periods, with a significant drop in the last quarter.

Considering the net profit margin, it is calculable and reported only from May 31, 2020 onward. The margin initially increases steadily after the low revenue and negative net income quarter, peaking between August 31, 2021 and February 28, 2022, which indicates improved profitability relative to revenues during this period. Following this peak, the margin shows a gradual decline while remaining positive, signifying some reduction in profitability efficiency, although the company remains profitable. The trend ends with a noticeable decrease in the final periods, suggesting challenges in maintaining previous profit levels.

In summary, the financial data shows resilience and recovery following an acute adverse event in early 2020. Revenue generation stabilizes with moderate growth trends, while net income volatility suggests sensitivity to operational and market factors. Profit margins highlight periods of improving efficiency but also signal recent pressures affecting profitability. These patterns suggest the company has navigated substantial challenges but faces ongoing uncertainties impacting its income and profit margins.

Revenues

Fluctuated significantly with a sharp fall in mid-2020, subsequent recovery, and a peak in late 2022, followed by modest declines.

Net Income

Highly volatile, including a major loss in mid-2020, recovery and peaks in late 2021 and mid-2024, then declining toward the end of the period.

Net Profit Margin

Showed improvement after mid-2020 loss, peaking in 2021-2022 before gradually declining, yet remaining positive throughout.

The financial data exhibits distinct fluctuations and trends over the observed quarters. Net income shows considerable variability, reflecting periods of both growth and decline. Notably, there is a marked drop into negative territory in May 2020, followed by a recovery and a significant increase reaching a peak in August 2021. After this peak, net income demonstrates a downward trend with intermittent rebounds, culminating in substantially lower values in the latest reported periods.

Shareholders’ equity generally displays an upward trajectory over the time horizon, indicating an accumulation of retained earnings and possibly other equity injections. Despite some fluctuations, the equity value rises steadily from the initial period through August 2022, after which it stabilizes and slightly declines towards the end of the period under analysis.

Return on equity (ROE) was not reported in the earliest periods but when available, it reveals a highly positive performance from the point of calculation. ROE peaks in August 2021, aligning with the peak in net income, and remains elevated through the next periods with minor oscillations. There is a gradual decline in ROE after August 2023, though it remains positive indicating profitable use of equity despite the decline in net income.

Overall, the data suggests that while the company experienced a significant disruption around early 2020, it recovered strongly with increasing profitability and equity accumulation. The subsequent period shows signs of pressure on net income but the return on equity remains robust, highlighting continued efficiency in generating returns from shareholders' equity. The moderation in shareholders’ equity towards the most recent periods may warrant further examination alongside net income trends to assess future financial stability and performance prospects.

Net Income Trend

Fluctuated substantially, with a significant loss in May 2020, followed by recovery and peaks around August 2021, then a general decline.

Shareholders’ Equity Trend

Overall upward trend with growth from 2019 to 2022, stabilizing and slightly decreasing in the latest periods.

Return on Equity Trend

High levels of ROE beginning mid-2020, peaking in August 2021, and gradually declining while remaining positive through early 2025.

The analysis of the quarterly financial data reveals several notable trends in net income, total assets, and return on assets (ROA) over the observed periods.

Net Income

Net income exhibited considerable volatility across the quarters. Initially, it showed a declining trend from 1,367 million USD in August 2019 to a low of -790 million USD in May 2020, indicating a significant loss during that quarter. Following this downturn, net income recovered robustly starting in August 2020, reaching a peak of 1,874 million USD in August 2021. Thereafter, it experienced fluctuations with a gradual downward tendency from 1,468 million USD in August 2022 to a lower range around 200-1,100 million USD towards the last quarters, with the lowest figure recorded at 211 million USD in May 2025. This pattern suggests episodic challenges interspersed with strong recoveries.

Total Assets

Total assets showed a steady upward trend from 26,249 million USD in August 2019 to a high of approximately 41,088 million USD by August 2022. However, starting in November 2022, a gradual decrease was observed, with total assets declining to 36,579 million USD by May 2025. Despite this decline, total assets remained substantially higher compared to the early periods, indicating significant asset accumulation followed by partial contraction or asset sales in later periods.

Return on Assets (ROA)

The ROA data, available from May 2020 onwards, indicates an overall improvement in asset efficiency. The ROA started at 8.1% and showed a rising trend, peaking at 16.04% in November 2021. Subsequently, it stabilized in a range between 14% to 15% through early 2023, followed by a gradual decline to 8.8% by May 2025. This trend suggests an improvement in generating income from assets through 2021, followed by diminishing efficiency in later periods.

In summary, the financial data depicts a company that encountered a sharp income reduction and loss in early 2020 but recovered strongly in subsequent years. Total assets increased significantly before experiencing a moderate decline post-2022. The fluctuating ROA aligns with net income trends, highlighting varying profitability and asset utilization efficiency over time. The recent downward trends in income, assets, and ROA may warrant further investigation into operational or market challenges affecting performance.