Nike (BSP:NIKE34) ROCE % : 19.03% (As of Feb. 2024)

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What is Nike ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Nike's annualized ROCE % for the quarter that ended in Feb. 2024 was 19.03%.

Nike ROCE % Historical Data

The historical data trend for Nike's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Nike ROCE % Chart

Nike Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

ROCE %

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30.93

18.18

26.34

22.44

20.49

Nike Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															19.25	16.79	22.49	25.82	19.03

Nike ROCE % Calculation

Nike's annualized ROCE % for the fiscal year that ended in May. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	29464.39	/	( ( (200052.642 - 53236.895)	+	(186953.17 - 46106.913) )	/ 2 )
	=	29464.39	/	( (146815.747	+	140846.257)	/ 2 )
	=	29464.39	/	143831.002
	=	20.49 %

Nike's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	26511.048	/	( ( (182220.294 - 44077.102)	+	(185319.38 - 44791.966) )	/ 2 )
	=	26511.048	/	( ( 138143.192	+	140527.414 )	/ 2 )
	=	26511.048	/	139335.303
	=	19.03 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

Nike (BSP:NIKE34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Nike ROCE % Related Terms

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Nike (BSP:NIKE34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Nike Inc (BSP:NIKE34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

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Address

One Bowerman Drive, Beaverton, OR, USA, 97005-6453

Website

https://www.nike.com

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.

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