Neogen Corporation (NEOG)

Net profit margin

		Nov 30, 2024	Aug 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Net income (ttm)	US$ in thousands	-474,400	-16,615	1,566	11,778	-26,576	-22,870	-13,483	-16,230	36,439	48,307	49,108	57,042	62,099	60,882	61,469	60,292	60,683	59,475	58,943	59,816
Revenue (ttm)	US$ in thousands	1,792,485	1,780,298	1,817,638	1,800,899	1,778,001	1,592,370	1,401,365	1,227,465	1,062,406	1,054,318	901,557	761,778	730,744	692,784	674,433	757,462	743,068	727,266	727,954	723,616
Net profit margin		-26.47%	-0.93%	0.09%	0.65%	-1.49%	-1.44%	-0.96%	-1.32%	3.43%	4.58%	5.45%	7.49%	8.50%	8.79%	9.11%	7.96%	8.17%	8.18%	8.10%	8.27%

November 30, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-474,400K ÷ $1,792,485K
= -26.47%

Neogen Corporation's net profit margin, a key financial metric indicating the efficiency of the company's operations in generating profits from revenue, has exhibited a fluctuating trend over the past few years. Starting at a healthy level of 8.27% in November 2019, the net profit margin gradually decreased to 7.49% by November 2021.

However, there was a notable increase to 9.11% in February 2021, which suggested an improvement in profitability. Subsequently, the net profit margin remained relatively stable, hovering around 8% during the first half of 2021.

However, a concerning trend emerged from February 2022 onwards, with a notable decline to 5.45%, and further plummeting to negative figures by August 2022. This negative trend continued into the following periods, with the net profit margin reaching its lowest point of -26.47% in November 2024.

The drastic decline in the net profit margin in recent periods could indicate challenges or inefficiencies in the company's cost management, pricing strategies, or revenue generation. It is important for Neogen Corporation to closely monitor and address these issues to improve profitability and ensure long-term sustainability.