The business behind the dividend
| Measure | NKE | Median | Formula |
|---|---|---|---|
| Return on equity | 20.9% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 17.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $3.17bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $2.18bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 8.4% | 15.0% | Operating income ÷ revenue |
| Net margin | 6.7% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.53x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 12.07x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.96x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.49x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.92x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 20.9% | 24.4% | 39.5% | 36.2% | 39.6% | 44.9% | 31.5% | 44.6% | 19.7% | 34.2% | 34.2% |
| Return on capital employed | 17.1% | 18.3% | 28.7% | 27.0% | 26.9% | 30.0% | 16.5% | — | — | — | 26.9% |
| Operating margin | 8.4% | 8.4% | 13.0% | 12.1% | 14.2% | 15.0% | 7.7% | — | — | — | 12.1% |
| Net margin | 6.7% | 7.0% | 11.1% | 9.9% | 12.9% | 12.9% | 6.8% | 10.3% | 5.3% | 12.3% | 9.9% |
| Debt to equity | 0.53x | 0.60x | 0.62x | 0.64x | 0.62x | 0.74x | 1.17x | 0.38x | 0.35x | 0.28x | 0.60x |
| Current ratio | 1.96x | 2.21x | 2.40x | 2.72x | 2.63x | 2.72x | 2.48x | 2.10x | 2.51x | 2.93x | 2.48x |
| Cash conversion | 0.92x | 1.15x | 1.30x | 1.15x | 0.86x | 1.16x | 0.98x | 1.47x | 2.56x | 0.91x | 1.15x |
How it compares in consumer discretionary
Among the 44 consumer discretionary companies here measured on free cash flow, Nike pays out less than 2 of them. The median for that group is 37.5%, against this company’s 110.2%.
Closest on free cash flow
- Dillard'S (DDS) 77.8%
- Amcor (AMCR) 97.2%
- Dick'S Sporting Goods (DKS) 103.4%
- Starbucks (SBUX) 113.5%
Same sector and same denominator, so the figures are comparable. All 48 in consumer discretionary →