Neogen Corporation (NEOG)

Operating profit margin

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 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
Operating income (ttm)	US$ in thousands	-432,240	-425,632	46,317	63,195	69,048	45,238	23,117	10,044	-1,215	10,627	30,752	46,435	54,524	70,243	77,019	74,169	73,858	71,127	70,154	67,523
Revenue (ttm)	US$ in thousands	905,996	913,828	912,199	924,222	929,238	918,681	919,085	822,447	720,730	630,719	531,203	527,159	514,491	502,956	487,439	468,459	450,108	433,268	426,071	418,170
Operating profit margin		-47.71%	-46.58%	5.08%	6.84%	7.43%	4.92%	2.52%	1.22%	-0.17%	1.68%	5.79%	8.81%	10.60%	13.97%	15.80%	15.83%	16.41%	16.42%	16.47%	16.15%

February 28, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-432,240K ÷ $905,996K
= -47.71%

Neogen Corporation's operating profit margin has shown a declining trend over the past few years. Starting at a healthy level of around 16% in May 2020, the operating profit margin remained relatively stable before gradually decreasing to 8.81% by May 2022. However, a significant drop was observed in the subsequent periods, reaching a low of -47.71% by February 2025. This negative trend indicates that the company's profitability from its core operations has deteriorated significantly, possibly due to changes in revenue growth, cost structure, or efficiency measures. The sharp decline in the operating profit margin raises concerns about Neogen Corporation's ability to generate profits and manage its operating expenses effectively. Further analysis of the company's financial performance and strategy is recommended to understand the reasons behind this decline and identify potential measures to improve profitability.