NKENEUTRAL

Return on Equity (ROE)

22.1%

Updated 10h ago

Sector Performance

70th percentile

NKE

22.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money — a 22.1% ROE means NKE earns $0.221 for every dollar of equity.

This is well above the sector median of 13.8%, placing NKE in the 70th percentile among peers. The year-over-year change is not available, but the 38.1% quarter-over-quarter jump from 16.0% to 22.1% shows a sharp recent improvement, though an eight-quarter trend is also unavailable. The combination of a high current ROE with a strong sequential gain suggests reduced risk of inefficiency, but the lack of a longer track record tempers confidence. This high level and recent improvement support a positive view of NKE’s profitability, yet the stock’s overall NEUTRAL verdict indicates offsetting factors, such as valuation or growth concerns. Therefore, this metric alone leans bullish but does not contradict the neutral stance — it simply highlights one strength among several considerations.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NKE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are NKE's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.