Stock Analysis on Net
Stock Analysis on Net

Nike Inc. (NYSE:NKE)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Nike Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Aug 31, 2024 38.02% = 14.00% × 2.72
May 31, 2024 39.50% = 14.96% × 2.64
Feb 29, 2024 36.77% = 14.00% × 2.63
Nov 30, 2023 37.46% = 14.24% × 2.63
Aug 31, 2023 36.16% = 13.73% × 2.63
May 31, 2023 36.20% = 13.51% × 2.68
Feb 28, 2023 37.70% = 14.31% × 2.64
Nov 30, 2022 36.89% = 14.21% × 2.60
Aug 31, 2022 35.65% = 13.73% × 2.60
May 31, 2022 39.57% = 14.99% × 2.64
Feb 28, 2022 41.30% = 15.45% × 2.67
Nov 30, 2021 41.34% = 15.85% × 2.61
Aug 31, 2021 42.41% = 16.04% × 2.64
May 31, 2021 44.86% = 15.17% × 2.96
Feb 28, 2021 28.73% = 9.47% × 3.03
Nov 30, 2020 26.56% = 8.11% × 3.27
Aug 31, 2020 29.16% = 8.09% × 3.61
May 31, 2020 31.52% = 8.10% × 3.89
Feb 29, 2020 47.74% = 16.47% × 2.90
Nov 30, 2019 48.89% = 17.19% × 2.84
Aug 31, 2019 46.78% = 16.40% × 2.85
May 31, 2019 44.57% = 16.99% × 2.62
Feb 28, 2019 — = — × 2.56
Nov 30, 2018 — = — × 2.60
Aug 31, 2018 — = — × 2.50

Based on: 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), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-K (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Nike Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Aug 31, 2024 38.02% = 10.60% × 1.32 × 2.72
May 31, 2024 39.50% = 11.10% × 1.35 × 2.64
Feb 29, 2024 36.77% = 10.14% × 1.38 × 2.63
Nov 30, 2023 37.46% = 10.28% × 1.39 × 2.63
Aug 31, 2023 36.16% = 9.82% × 1.40 × 2.63
May 31, 2023 36.20% = 9.90% × 1.36 × 2.68
Feb 28, 2023 37.70% = 10.82% × 1.32 × 2.64
Nov 30, 2022 36.89% = 11.47% × 1.24 × 2.60
Aug 31, 2022 35.65% = 11.96% × 1.15 × 2.60
May 31, 2022 39.57% = 12.94% × 1.16 × 2.64
Feb 28, 2022 41.30% = 13.06% × 1.18 × 2.67
Nov 30, 2021 41.34% = 13.32% × 1.19 × 2.61
Aug 31, 2021 42.41% = 13.17% × 1.22 × 2.64
May 31, 2021 44.86% = 12.86% × 1.18 × 2.96
Feb 28, 2021 28.73% = 8.90% × 1.06 × 3.03
Nov 30, 2020 26.56% = 7.39% × 1.10 × 3.27
Aug 31, 2020 29.16% = 7.20% × 1.12 × 3.61
May 31, 2020 31.52% = 6.79% × 1.19 × 3.89
Feb 29, 2020 47.74% = 10.46% × 1.57 × 2.90
Nov 30, 2019 48.89% = 11.21% × 1.53 × 2.84
Aug 31, 2019 46.78% = 10.81% × 1.52 × 2.85
May 31, 2019 44.57% = 10.30% × 1.65 × 2.62
Feb 28, 2019 — = — × — × 2.56
Nov 30, 2018 — = — × — × 2.60
Aug 31, 2018 — = — × — × 2.50

Based on: 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), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-K (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Nike Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Aug 31, 2024 14.00% = 10.60% × 1.32
May 31, 2024 14.96% = 11.10% × 1.35
Feb 29, 2024 14.00% = 10.14% × 1.38
Nov 30, 2023 14.24% = 10.28% × 1.39
Aug 31, 2023 13.73% = 9.82% × 1.40
May 31, 2023 13.51% = 9.90% × 1.36
Feb 28, 2023 14.31% = 10.82% × 1.32
Nov 30, 2022 14.21% = 11.47% × 1.24
Aug 31, 2022 13.73% = 11.96% × 1.15
May 31, 2022 14.99% = 12.94% × 1.16
Feb 28, 2022 15.45% = 13.06% × 1.18
Nov 30, 2021 15.85% = 13.32% × 1.19
Aug 31, 2021 16.04% = 13.17% × 1.22
May 31, 2021 15.17% = 12.86% × 1.18
Feb 28, 2021 9.47% = 8.90% × 1.06
Nov 30, 2020 8.11% = 7.39% × 1.10
Aug 31, 2020 8.09% = 7.20% × 1.12
May 31, 2020 8.10% = 6.79% × 1.19
Feb 29, 2020 16.47% = 10.46% × 1.57
Nov 30, 2019 17.19% = 11.21% × 1.53
Aug 31, 2019 16.40% = 10.81% × 1.52
May 31, 2019 16.99% = 10.30% × 1.65
Feb 28, 2019 — = — × —
Nov 30, 2018 — = — × —
Aug 31, 2018 — = — × —

Based on: 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), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-K (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-Q (reporting date: 2018-08-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2025 is the decrease in profitability measured by net profit margin ratio.