Neogen Corporation (NEOG)

Operating profit margin

		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	Aug 31, 2019
Operating income (ttm)	US$ in thousands	47,880	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
Revenue (ttm)	US$ in thousands	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	722,206
Operating profit margin		2.69%	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%

August 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $47,880K ÷ $1,780,298K
= 2.69%

The operating profit margin of Neogen Corporation has shown some fluctuations over the analyzed periods. The operating profit margin for the most recent period ending August 31, 2024, stands at 2.69%, which is lower compared to the previous period's margin of 3.80%. This decrease indicates that Neogen Corporation generated less operating profit relative to its revenue in the latest period.

Looking at the trend over the past few quarters, the operating profit margin has been relatively volatile, with fluctuations ranging from 1.86% to 10.95%. This volatility could be a result of various factors impacting the company's operations and financial performance.

It's important to note that a declining operating profit margin could signify challenges in managing operating expenses, pricing pressures, or decreasing sales volume. Conversely, an increasing operating profit margin may indicate improving efficiency, cost control measures, or stronger pricing power.

It would be beneficial for stakeholders to further investigate the reasons behind the fluctuations in Neogen Corporation's operating profit margin to assess the company's overall financial health and performance.