Neogen Corporation (NEOG)

Operating profit margin

		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	Aug 31, 2019	May 31, 2019
Operating income (ttm)	US$ in thousands	69,048	72,709	50,588	37,515	32,117	22,810	42,935	58,618	60,846	70,243	77,019	74,169	73,858	71,127	70,154	67,523	66,309	67,905	67,879	68,094
Revenue (ttm)	US$ in thousands	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	722,206	718,610
Operating profit margin		3.80%	4.04%	2.85%	2.36%	2.29%	1.86%	4.04%	5.56%	6.75%	9.22%	10.54%	10.71%	10.95%	9.39%	9.44%	9.28%	9.11%	9.38%	9.40%	9.48%

February 29, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $69,048K ÷ $1,817,638K
= 3.80%

Neogen Corporation's operating profit margin has displayed fluctuations over the recent quarters. The operating profit margin has ranged from a low of 1.86% in November 2022 to a peak of 10.95% in February 2021. The trend indicates that the operating profit margin has been gradually decreasing from 10.95% in February 2021 to 3.80% in February 2024. This decline suggests that the company's ability to generate profits from its core operations has weakened over time. It may be essential for Neogen Corporation to assess its cost structure and revenue generation strategies to improve its operating profit margin in the future.