Neogen Corporation (NEOG)
Operating profit margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 37,515 | 58,618 | 74,169 | 67,523 | 68,094 |
| Revenue | US$ in thousands | 1,616,090 | 1,054,320 | 936,918 | 836,340 | 828,372 |
| Operating profit margin | 2.32% | 5.56% | 7.92% | 8.07% | 8.22% |
May 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $37,515K ÷ $1,616,090K
= 2.32%
The operating profit margin of Neogen Corp. has exhibited a declining trend over the past five years. In 2023, the operating profit margin stood at 4.56%, significantly lower than the levels seen in the previous years. This decline indicates that the company's operating profits as a percentage of revenue have decreased, which may be attributed to increased operating costs or lower revenue generation efficiency. It is worth noting that the operating profit margin has experienced a downward trajectory for the past four years, reflecting potential challenges in maintaining profitability and operational efficiency. This trend warrants further investigation to identify the factors contributing to the decline and to implement strategies aimed at improving the company's operating profit margin in the future.
Peer comparison
May 31, 2023