Nike Return On Asset vs. Revenue
| NKE Stock | EUR 73.08 1.44 1.93% |
For Nike profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Nike to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Nike Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Nike's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Nike Inc over time as well as its relative position and ranking within its peers.
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Nike Inc Revenue vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Nike's current stock value. Our valuation model uses many indicators to compare Nike value to that of its competitors to determine the firm's financial worth. Nike Inc is regarded fourth in return on asset category among its peers. It is regarded third in revenue category among its peers totaling about 460,197,044,335 of Revenue per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nike's earnings, one of the primary drivers of an investment's value.Nike Revenue vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.1 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
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| = | 46.71 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Nike Revenue vs Competition
Nike Inc is regarded third in revenue category among its peers. Market size based on revenue of Footwear & Accessories industry is now estimated at about 243.06 Billion. Nike retains roughly 46.71 Billion in revenue claiming about 19% of equities under Footwear & Accessories industry.
Nike Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Nike, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Nike will eventually generate negative long term returns. The profitability progress is the general direction of Nike's change in net profit over the period of time. It can combine multiple indicators of Nike, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. NIKE INC operates under Footwear Accessories classification in Germany and is traded on Frankfurt Stock Exchange. It employs 76700 people.
Nike Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Nike. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Nike position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Nike's important profitability drivers and their relationship over time.
Use Nike in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Nike position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nike will appreciate offsetting losses from the drop in the long position's value.Nike Pair Trading
Nike Inc Pair Trading Analysis
The ability to find closely correlated positions to Nike could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Nike when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Nike - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Nike Inc to buy it.
The correlation of Nike is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Nike moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Nike Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Nike can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Nike position
In addition to having Nike in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Corporate ETFs Thematic Idea Now
Corporate ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Corporate ETFs theme has 223 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Nike Stock
When determining whether Nike Inc is a strong investment it is important to analyze Nike's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Nike's future performance. For an informed investment choice regarding Nike Stock, refer to the following important reports:Check out Correlation Analysis. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project Nike's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Nike Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Nike's income statement, its balance sheet, and the statement of cash flows.