Neogen Corporation (NEOG)

Operating return on assets (Operating ROA)

		May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Operating income	US$ in thousands	37,515	58,618	74,169	67,523	68,094
Total assets	US$ in thousands	4,554,430	992,929	920,192	797,182	695,740
Operating ROA		0.82%	5.90%	8.06%	8.47%	9.79%

May 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $37,515K ÷ $4,554,430K
= 0.82%

The trend in Neogen Corp.'s operating return on assets (operating ROA) has shown a decline over the past five years. The company's operating ROA decreased from 9.79% in 2019 to 0.82% in 2023. This suggests a reduction in the efficiency of the company's operations in generating profits from its assets. It's important to further investigate the factors contributing to this decline and assess the company's operational and financial strategies to address this decreasing trend in operating ROA.