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Nike Inc (NYSE:NKE)
Net Margin
12.05% (As of Aug. 2014)

Net margin is calculated as net income divided by its revenue. Nike Inc's net income for the three months ended in Aug. 2014 was $962 Mil. Nike Inc's revenue for the three months ended in Aug. 2014 was $7,982 Mil. Therefore, Nike Inc's net margin for the quarter that ended in Aug. 2014 was 12.05%.

NKE' s 10-Year Net Margin Range
Min: 4.18   Max: 10.6
Current: 9.98

4.18
10.6
NKE's Net Marginis ranked higher than
89% of the 811 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 4.15 vs. NKE: 9.98 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Nike Inc's Net Margin for the fiscal year that ended in May. 2014 is calculated as

Net Margin=Net Income (A: May. 2014 )/Revenue (A: May. 2014 )
=2693/27799
=9.69 %

Nike Inc's Net Margin for the quarter that ended in Aug. 2014 is calculated as

Net Margin=Net Income (Q: Aug. 2014 )/Revenue (Q: Aug. 2014 )
=962/7982
=12.05 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nike Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
netmargin 8.829.319.1410.117.7510.0310.609.539.779.69

Nike Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
netmargin 8.808.766.4514.009.7811.178.359.839.3112.05
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