Nike Inc. (NYSE:NKE)

Gross Profit Margin

The gross profit margin exhibited a generally stable pattern over the six-year period, fluctuating around the mid-40s percentage range. It peaked at 45.98% in 2022, followed by a decline in the subsequent years, reaching 42.73% in 2025. This indicates relatively consistent cost control in production or purchasing, though there is a slight erosion in margin towards the end.

Operating Profit Margin

The operating profit margin showed notable variation during the period. It significantly increased from 8.33% in 2020 to a high of 15.58% in 2021, suggesting enhanced operational efficiency or cost management. However, after 2021, the margin declined steadily to 7.99% in 2025. This downward trend suggests rising operating expenses or pressure on operating income over recent years.

Net Profit Margin

The net profit margin followed a similar trajectory to the operating margin, with an initial strong increase from 6.79% in 2020 to around 12.9% in 2021 and 2022. It subsequently decreased to a low of 6.95% in 2025. This pattern reflects the company's fluctuating profitability at the bottom line, possibly impacted by non-operating items, taxes, or interest expenses offsetting earlier gains.

Return on Equity (ROE)

Return on equity showed a robust upward movement from 31.52% in 2020 peaking at 44.86% in 2021. After this peak, it experienced a steady decline down to 24.36% in 2025. This trend suggests that while shareholder returns were very strong initially, their efficiency in generating returns on equity capital has diminished considerably in recent years.

Return on Assets (ROA)

Return on assets mirrored the trends observed in ROE with an increase from 8.1% in 2020 to approximately 15% in 2021 and 2022, followed by a gradual decrease to 8.8% in 2025. The ROA decline implies reduced efficiency in utilizing assets to generate profits over the latter periods.

Gross Profit

The gross profit exhibited an overall upward trend from May 31, 2020, to May 31, 2024, increasing from $16,241 million to a peak of $22,887 million. However, there is a noticeable decline in the latest period ending May 31, 2025, where gross profit decreased to $19,790 million. This suggests a downward adjustment or pressures on profitability in the most recent year.

Revenues

Revenues grew consistently over the five years from May 31, 2020, reaching a high of $51,362 million in May 31, 2024. In the following period, revenues decreased to $46,309 million by May 31, 2025. This decline after strong growth could indicate market challenges, competitive pressures, or other external factors impacting sales.

Gross Profit Margin

The gross profit margin percentage showed moderate fluctuation, rising from 43.42% in 2020 to a high of 45.98% in 2022, indicating improved profitability relative to revenues during that period. However, the margin then declined to 42.73% by May 31, 2025, reflecting a reduction in efficiency or increased costs relative to revenue in the most recent periods.

Operating Income

The operating income experienced a significant increase from 3,115 million USD in 2020 to a peak of 6,937 million USD in 2021. After 2021, there was a gradual decline, falling to 6,675 million USD in 2022 and further decreasing to 5,915 million USD in 2023. A slight recovery to 6,311 million USD was noted in 2024, followed by a sharp decrease to 3,702 million USD in 2025, indicating notable volatility and a downward trend over the latter years.

Revenues

Revenues showed a consistent upward trend from 37,403 million USD in 2020 to a high of 51,362 million USD in 2024. The most substantial growth occurred between 2020 and 2021, with continued, though slower, expansion until 2024. However, in 2025, revenues declined to 46,309 million USD, suggesting a reversal in sales growth after several years of gains.

Operating Profit Margin

The operating profit margin demonstrated marked improvement from 8.33% in 2020 to 15.58% in 2021, reflecting enhanced profitability alongside rising operating income. This margin decreased slightly to 14.29% in 2022 and continued to decline to 11.55% in 2023. A minor rebound to 12.29% was noted in 2024, but the margin dropped significantly to 7.99% in 2025, indicating reduced operational efficiency or increased costs relative to revenue in recent periods.

Revenues

Revenues exhibited an overall upward trajectory from 2020 to 2024, increasing from approximately 37.4 billion USD in 2020 to a peak of 51.36 billion USD in 2024. However, in 2025, there was a noticeable decline to around 46.3 billion USD, indicating a potential slowdown or market contraction after several years of growth.

Net Income

Net income showed significant volatility during the analyzed period. The figure more than doubled from about 2.54 billion USD in 2020 to 5.73 billion USD in 2021, maintaining a similar level in 2022 with a slight increase to 6.05 billion USD. Thereafter, net income declined to 5.07 billion USD in 2023, rebounded to 5.7 billion USD in 2024, but then experienced a sharp decrease to 3.22 billion USD in 2025. This variation suggests fluctuations in profitability despite generally rising revenues until 2024.

Net Profit Margin

The net profit margin mirrored the pattern observed in net income, with a rise from 6.79% in 2020 to a peak of 12.94% in 2022, indicating improved profitability. This was followed by a decline to 9.9% in 2023, a moderate recovery to 11.1% in 2024, and a significant reduction to 6.95% in 2025. The margin profile suggests variations in cost management, pricing power, or other operational factors impacting profitability relative to revenues.

Overall Insights

Over the six-year period, the company demonstrated solid revenue growth until 2024 but faced a decrease in the last recorded year. Profitability metrics fluctuated, peaking in 2022 before a downward correction. The combination of declining revenue and shrinking net profit margin in the most recent year signals potential challenges in maintaining earnings performance, warranting attention to cost control, market conditions, or strategic initiatives to restore growth momentum.

Net Income

The net income exhibits a volatile trend over the analyzed periods. It increased substantially from 2,539 million in 2020 to a peak of 6,046 million in 2022, indicating strong profitability growth initially. However, there was a subsequent decline to 5,070 million in 2023 before a moderate rebound to 5,700 million in 2024. The most recent data point shows a significant decrease to 3,219 million in 2025, suggesting challenges or increased costs impacting profitability in the latest period.

Shareholders’ Equity

Shareholders’ equity followed a generally upward trajectory from 8,055 million in 2020 to a high of 15,281 million in 2022, reflecting accumulated profits and possibly capital increases. Afterwards, equity values declined somewhat, reaching 14,004 million in 2023 and slightly increased in 2024 to 14,430 million, before decreasing again to 13,213 million in 2025. This indicates a period of equity reduction or distributions, countering earlier growth.

Return on Equity (ROE)

The ROE percentage shows an overall declining trend after peaking at 44.86% in 2021. Although it remained relatively high in 2022 (39.57%) and 2024 (39.5%), it consistently decreased from 2021 onwards, with a notable fall to 24.36% in 2025. This reduction in ROE reflects decreasing efficiency in generating returns from shareholders’ equity, possibly linked to the decline in net income and changes in equity levels.

The analysis of the annual financial data reveals several trends and patterns regarding financial performance and asset utilization.

Net Income

Net income demonstrated a notable increase from 2,539 million US dollars in the year ending May 31, 2020, to a peak of 6,046 million in 2022. Following this peak, net income experienced fluctuations, decreasing to 5,070 million in 2023, rebounding to 5,700 million in 2024, and then substantially declining to 3,219 million by 2025. This pattern suggests variable profitability with a downward trend in the most recent year analyzed.

Total Assets

Total assets increased steadily from 31,342 million US dollars in 2020 to a high of 40,321 million in 2022, indicating expansion or accumulation of resources during this period. However, in the subsequent years, total assets contracted moderately to 37,531 million in 2023, remained relatively stable around 38,110 million in 2024, and then declined further to 36,579 million by 2025. This indicates some asset base reduction or reallocation in later years.

Return on Assets (ROA)

ROA exhibited a rising trend from 8.1% in 2020 to over 15% in 2021 and 14.99% in 2022, reflecting efficient use of assets to generate profits during this period. ROA then declined modestly to 13.51% in 2023, rebounded slightly to 14.96% in 2024, before dropping significantly to 8.8% in 2025. The sharp decrease in the latest year aligns with the reduction in net income and total assets, suggesting diminished operational efficiency or profitability.

Overall, the data indicates a phase of growth in earnings and assets until 2022, followed by volatility in profitability and a contraction in asset base. The declining ROA in 2025 points to challenges in maintaining previous efficiency levels, which may warrant further strategic review.