Neogen Corporation (NEOG)

Net profit margin

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Net income	US$ in thousands	-9,421	-22,870	48,307	60,882	59,475
Revenue	US$ in thousands	924,222	822,447	527,159	468,459	418,170
Net profit margin		-1.02%	-2.78%	9.16%	13.00%	14.22%

May 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-9,421K ÷ $924,222K
= -1.02%

Neogen Corporation's net profit margin has exhibited fluctuations over the years based on the provided data. In May 31, 2020, the net profit margin stood at 14.22%, indicating that 14.22% of the company's total revenue turned into net income after all expenses were deducted. The margin slightly decreased to 13.00% as of May 31, 2021, but remained relatively healthy.

However, a significant decline in profitability was observed in the subsequent years, with the net profit margin dropping to 9.16% by May 31, 2022. This downward trend intensified further in the following years, reaching negative values. By May 31, 2023, the net profit margin plummeted to -2.78%, indicating that the company was operating at a loss. This negative trend continued into the next period, with the net profit margin deteriorating even further to -1.02% by May 31, 2024.

The declining trend in Neogen Corporation's net profit margin warrants further investigation into the company's operational efficiency, cost management, revenue generation, and overall financial health. It is crucial for the company to address the factors contributing to these negative margins in order to improve profitability and ensure long-term sustainability.