Neogen Corporation (NEOG)

Operating return on assets (Operating ROA)

		May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Operating income	US$ in thousands	-1,061,000	58,663	37,515	34,924	53,128
Total assets	US$ in thousands	3,443,840	4,548,830	4,554,430	992,929	920,192
Operating ROA		-30.81%	1.29%	0.82%	3.52%	5.77%

May 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $-1,061,000K ÷ $3,443,840K
= -30.81%

The operating return on assets (ROA) for Neogen Corporation has exhibited significant fluctuations over the observed period from May 31, 2021, to May 31, 2025. In the fiscal year ending May 31, 2021, the company posted an operating ROA of 5.77%, indicating a moderate level of operating efficiency relative to its asset base. This ratio declined markedly in the subsequent year to 3.52%, reflecting a reduction in operating profitability or increased asset utilization efficiency challenges.

The downward trend persisted into the fiscal year ending May 31, 2023, with the operating ROA diminishing further to 0.82%, suggesting a substantial weakening in operational performance or profit margins relative to the assets employed. Despite a slight improvement to 1.29% in the fiscal year ending May 31, 2024, the ratio remained critically low, indicating only marginal operational efficiency gains or stabilization.

Most notably, for the fiscal year ending May 31, 2025, Neogen's operating ROA experienced a dramatic decline to -30.81%. This significant negative figure indicates a substantial operational loss in relation to its assets, signaling severe operational distress, potentially due to extraordinary expenses, declining revenues, or operational disruptions. Overall, the trend reflects a deteriorating operational efficiency over the five-year period, culminating in a highly adverse financial condition as of the most recent year.