Neogen Corporation (NEOG)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.19% | 49.36% | 46.10% | 45.91% | 46.94% |
| Operating profit margin | 6.35% | 4.56% | 6.62% | 11.34% | 11.75% |
| Pretax margin | -1.55% | -2.68% | 11.42% | 16.07% | 17.29% |
| Net profit margin | -1.02% | -2.78% | 9.16% | 13.00% | 14.22% |
Neogen Corporation's profitability has shown fluctuations over the years based on the provided data. The gross profit margin has been fairly stable, ranging from 45.91% to 50.19%, indicating that the company effectively manages its production costs.
The operating profit margin decreased notably from 11.34% in 2021 to 4.56% in 2023, but has shown a slight recovery to 6.35% in 2024. This suggests that Neogen Corporation has faced challenges in controlling its operating expenses but has made some improvements recently.
The pretax margin reveals a significant decline from 16.07% in 2021 to -2.68% in 2023, indicating that the company's profitability before taxes has been negatively impacted. This trend continued in 2024 with a pretax margin of -1.55%. Neogen Corporation may be facing issues such as increased costs or decreased revenue in recent years.
The net profit margin, which reflects the company's bottom line profitability, has also experienced a downturn from 13.00% in 2021 to -2.78% in 2023. However, there was a partial recovery to -1.02% in 2024. This suggests that after-tax profitability has been adversely affected by various factors, highlighting potential challenges in generating profits.
Overall, Neogen Corporation's profitability ratios indicate a mixed performance, with stable gross profit margins but declining operating, pretax, and net profit margins in recent years. The company may need to focus on cost management, revenue generation, and overall efficiency to improve its profitability going forward.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.29% | 0.82% | 3.52% | 5.77% | 6.16% |
| Return on assets (ROA) | -0.21% | -0.50% | 4.87% | 6.62% | 7.46% |
| Return on total capital | 1.95% | 1.20% | 9.49% | 9.19% | 9.31% |
| Return on equity (ROE) | -0.30% | -0.73% | 5.44% | 7.24% | 8.20% |
Neogen Corporation's profitability ratios have shown fluctuations over the years based on the provided data.
1. Operating return on assets (Operating ROA):
- The Operating ROA declined from 6.16% in May 2020 to 3.52% in May 2022, showing a decrease in the company's ability to generate operating income from its assets. This further decreased to 0.82% by May 2023 before slightly improving to 1.29% by May 2024.
2. Return on assets (ROA):
- The ROA also followed a decreasing trend, starting at 7.46% in May 2020 and dropping to -0.50% in May 2023. This negative trend indicates that the company's profitability in relation to its total assets deteriorated over these years.
3. Return on total capital:
- The Return on total capital remained relatively stable around 9% in the period from May 2020 to May 2022. However, there was a significant decline to 1.20% in May 2023, before a slight improvement to 1.95% by May 2024.
4. Return on equity (ROE):
- The ROE saw a similar downward trend, from 8.20% in May 2020 to -0.30% in May 2024. This indicates that the company's ability to generate profit from shareholders' equity weakened over the years.
Overall, the declining profitability ratios suggest that Neogen Corporation may be facing challenges in efficiently utilizing its assets and capital to generate returns for its stakeholders. Further analysis of the company's operations and financial strategies may be required to improve these profitability metrics.