Switch to:
GuruFocus has detected 2 Warning Signs with Nike Inc $NKE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Nike Inc (NYSE:NKE)
Net Margin %
10.29% (As of Nov. 2016)

Net margin is calculated as net income divided by its revenue. Nike Inc's net income for the three months ended in Nov. 2016 was $842 Mil. Nike Inc's revenue for the three months ended in Nov. 2016 was $8,180 Mil. Therefore, Nike Inc's net margin for the quarter that ended in Nov. 2016 was 10.29%.

NKE' s Net Margin % Range Over the Past 10 Years
Min: 7.75   Max: 12.02
Current: 12.02

7.75
12.02
NKE's Net Margin % is ranked higher than
87% of the 664 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 3.45 vs. NKE: 12.02 )

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. 2016 is calculated as

Net Margin=Net Income (A: May. 2016 )/Revenue (A: May. 2016 )
=3760/32376
=11.61 %

Nike Inc's Net Margin for the quarter that ended in Nov. 2016 is calculated as

Net Margin=Net Income (Q: Nov. 2016 )/Revenue (Q: Nov. 2016 )
=842/8180
=10.29 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Nike Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
netmargin 9.1410.117.7510.0310.609.489.779.6910.7011.61

Nike Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
netmargin 8.8810.6011.1214.0110.2111.8310.2613.7810.2913.53
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK