NKENEUTRAL

NKE Return on Equity (ROE) Analysis

22.1%

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so NKE’s 22.1% means it earns $0.221 for every dollar of equity invested.

Sector Performance

72th percentile

NKE

22.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

16.0%(Jun 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so NKE’s 22.1% means it earns $0.221 for every dollar of equity invested.

That level tops the sector median of 13.9%, placing NKE in the 70th percentile among its peers. The trend data is incomplete: the year-over-year change is not available, while the quarter-over-quarter change shows a rise of +38.1% from the prior period’s 16.0%. This high ROE with a sharp recent increase suggests the company is currently converting equity into profit very efficiently, reducing the risk of weak capital allocation. However, with only two historical values and no clear multi-quarter trajectory, the durability of that jump remains uncertain, adding some caution to the opportunity. The strong level and positive quarterly move support a view that NKE is performing above sector norms, but it does not override the overall neutral verdict given the limited trend visibility.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.