Neogen Corporation (NEOG)

Net profit margin

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net income	US$ in thousands	-22,870	48,307	60,882	59,475	60,176
Revenue	US$ in thousands	1,616,090	1,054,320	936,918	836,340	828,372
Net profit margin		-1.42%	4.58%	6.50%	7.11%	7.26%

May 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-22,870K ÷ $1,616,090K
= -1.42%

The net profit margin of Neogen Corp. has fluctuated over the past five years, indicating changes in the company's profitability relative to its revenue. In 2019, the net profit margin was 14.53%, reflecting a strong profitability, which then slightly decreased to 14.22% in 2020. However, the net profit margin experienced a more significant decline to 13.00% in 2021, followed by a further decrease to 9.16% in 2022. Notably, there was a notable negative net profit margin of -2.78% in 2023, suggesting that the company's expenses exceeded its revenue, leading to a loss. This trend raises concerns about the company's ability to effectively control costs and generate profits. Further analysis of the company's financial performance and cost structure is warranted to understand the underlying reasons for these fluctuations.