Nike Net Profit And Net Margin From 2012 To 2016
This report provides the last five years net profit and net margin of Nike Inc (NKE) from 2012 to 2016. Nike reported a total net income of $3.8 billion during 2016. Nike generated a total of $32.4 billion revenues during 2016. Nike net profit margin was 11.6% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in May.
Nike Net Profit From 2012 To 2016
- Nike reported a total net profit of $2.2 billion and a net profit margin of 9.5% during 2012.
- Nike reported a total net profit of $2.5 billion and a net profit margin of 9.8% during 2013.
- Nike reported a total net profit of $2.7 billion and a net profit margin of 9.7% during 2014.
- Nike reported a total net profit of $3.3 billion and a net profit margin of 10.7% during 2015.
- Nike reported a total net profit of $3.8 billion and a net profit margin of 11.6% during 2016.
Why Analyze Net Profit Margin?
Net Profit Margin (also known as net margin) is one of the most commonly used profitability ratio. Net profit margin represents the money a company makes on every dollar of sales. It is computed by dividing the total net income of a company with its total revenues. A positive net margin means the company generated more revenues than its costs and expenses. A negative net margin means the company spent more on its costs and expenses than the revenues it generated.
Net profit margin analysis is important for a number of reasons. First, it helps in understanding the extent of a company's profits or losses. A high positive net margin means the company can keep more money for itself and can possibly invest it into the business to generate more revenues in the future. A high negative net margin means the company is losing a lot of money and its survival will be difficult unless the company grows revenues at a faster rate or cuts its costs and expenses. Common cost cutting measures include outsourcing, employee layoffs, and business units shutdowns or divestitures. Second, a company's historical profit margin analysis along with its revenue forecast analysis can help in forecasting the future profits of a company. Third, a company's net margin comparison with the other companies in the same industry or the industry average can help identify the operationally most efficient companies. A comparison of net margins of companies in different industries can help identify the most profitable business models.
With $32.4 billion revenues, Nike ranked number 78 in the R&P Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.
The top-20 companies in the US by revenues during 2016 were:
- Walmart ($482.1 billion)
- ExxonMobil ($226.1 billion)
- Berkshire Hathaway ($223.6 billion)
- Apple ($215.6 billion)
- McKesson ($190.9 billion)
- UnitedHealth Group ($184.8 billion)
- CVS Health ($177.5 billion)
- General Motors ($166.4 billion)
- AT&T ($163.8 billion)
- Ford Motor ($151.8 billion)
- AmerisourceBergen ($146.8 billion)
- Amazon ($136 billion)
- Verizon ($126 billion)
- General Electric ($123.7 billion)
- Cardinal Health ($121.5 billion)
- Costco ($118.7 billion)
- Walgreens Boots Alliance ($117.4 billion)
- Chevron ($114.5 billion)
- Kroger ($109.8 billion)
- Express Scripts Holding ($100.3 billion)
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For example, Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments.
Nike is associated with Consumer Goods Sector and Personal Goods Industry.
With $32.4 billion revenues, Nike ranked number 9 of all the companies in the US Consumer Goods sector. There were a total of 207 public companies in the US Consumer Goods sector that had revenues greater than $50 million during 2016.
The top-10 companies in the US Consumer Goods sector by revenues during 2016 were:
- Philip Morris International ($75 billion)
- P&G ($65.3 billion)
- PepsiCo ($62.8 billion)
- Archer Daniels Midland ($62.3 billion)
- Sysco ($50.4 billion)
- Bunge ($42.7 billion)
- Coca-Cola ($41.9 billion)
- Tyson Foods ($36.9 billion)
- Nike ($32.4 billion)
- Kraft Heinz ($26.5 billion)
Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:
- Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
- Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
- Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
- Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
- Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
- Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
- Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
- Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.
With $32.4 billion revenues, Nike ranked number 2 of all the companies in the US Personal Goods industry. There were a total of 52 public companies in the US Personal Goods industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Personal Goods industry by revenues during 2016 were:
To identify and analyze high/low growth or most/least profitable similar-size companies in different sectors or industries, R&P research classifies all companies into different segments based upon their revenues, revenue growth, and net profit margins.
Based upon their annual revenues, the companies are classified into one of the following four segments:
- Mega companies, having revenues greater than $50 billion.
- Very Large companies, having revenues between $10 billion and $50 billion.
- Large companies, having revenues between $1 billion and $10 billion.
- Mid-size companies, having revenues between $50 million and $1 billion.
With $32.4 billion revenues, Nike was in the Very Large companies revenue segment during 2016. There were a total of 239 companies in the Very Large companies revenue segment during 2016.
Based upon their annual revenue growth, the companies are classified into one of the following eight segments:
- Very High positive growth companies, having annual revenue growth greater than 50%.
- High positive growth companies, having annual revenue growth between 20% and 50%.
- Medium positive growth companies, having annual revenue growth between 5% and 20%.
- Low positive growth companies, having annual revenue growth between 0% and 5%.
- Low negative growth companies, having annual revenue growth between -5% and 0%.
- Medium negative growth companies, having annual revenue growth between -20% and -5%.
- High negative growth companies, having annual revenue growth between -50% and -20%.
- Very High negative growth companies, having annual revenue growth less than -50%.
With 5.8% revenue growth year-over-year, Nike was in the Medium positive revenue growth segment during 2016. There were a total of 876 companies in the Medium positive revenue growth segment during 2016. Of the US top-3000 companies, 1985 (nearly two-third of the total) had positive revenue growth and 1015 (nearly one-third of the total) had negative revenue growth during 2016.
Based upon their annual net profit margin, the companies are classified into one of the following eight segments:
- Very High positive margin companies, having net profit margin greater than 50%.
- High positive margin companies, having net profit margin between 20% and 50%.
- Medium positive margin companies, having net profit margin between 5% and 20%.
- Low positive margin companies, having net profit margin between 0% and 5%.
- Low negative margin companies, having net profit margin between -5% and 0%.
- Medium negative margin companies, having net profit margin between -20% and -5%.
- High negative margin companies, having net profit margin between -50% and -20%.
- Very High negative margin companies, having net profit margin less than -50%.
With a net margin of 11.6%, Nike was in the Medium positive net profit margin segment during 2016. There were a total of 1086 companies in the Medium positive net profit margin segment during 2016. Of the US top-3000 companies, 2244 (nearly three-fourth of the total) had positive net profit margin and 756 (nearly one-fourth of the total) had negative net profit margin during 2016.
Company Business Summary
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. It offers NIKE brand products in nine categories: running, NIKE basketball, the Jordan brand, football, men's training, women's training, action sports, sportswear, and golf. The company also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, it sells sports apparel; and markets apparel with licensed college and professional team and league logos. Further, the company sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment under the NIKE brand for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories under the Jumpman trademark; action sports and youth lifestyle apparel and accessories under the Hurley trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. Additionally, it licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts through NIKE-owned retail stores and Internet Websites, mobile applications, independent distributors, and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
The chart and the data on this page are sourced from the R&P Research Industry Intelligence Platform. The platform provides the key financial metrics for all the public companies in the United States. The platform empowers users to compare last five or 15 years financial data of a company with the other companies or the industry averages. This benchmarking exercise yields powerful insights that can drive better business decisions.