Neogen Corporation (NEOG)

Operating profit margin

May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Operating income US$ in thousands 58,663 37,515 34,924 53,128 49,127
Revenue US$ in thousands 924,222 822,447 527,159 468,459 418,170
Operating profit margin 6.35% 4.56% 6.62% 11.34% 11.75%

May 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $58,663K ÷ $924,222K
= 6.35%

Neogen Corporation's operating profit margin has experienced fluctuations over the past five years. Starting at 11.75% on May 31, 2020, it slightly decreased to 11.34% by May 31, 2021. However, in the subsequent years, there was a significant decline in the operating profit margin to 6.62% on May 31, 2022, and further dropped to 4.56% by May 31, 2023. By May 31, 2024, there was a slight recovery in the operating profit margin to 6.35%.

The decreasing trend in the operating profit margin from 2021 to 2023 indicates potential challenges Neogen Corporation may have faced in managing its operating expenses relative to its revenue during this period. The slight rebound in 2024 suggests some improvement in controlling costs or potentially increased revenue generation efforts.

It is crucial for Neogen Corporation to analyze the reasons behind these fluctuations in the operating profit margin to identify areas for operational improvement. Monitoring and managing operating expenses efficiently while maximizing revenue streams will be key in enhancing profitability and overall financial performance in the future.


Peer comparison

May 31, 2024