Neogen Corporation (NEOG)

Operating return on assets (Operating ROA)

		Nov 30, 2024	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
Operating income (ttm)	US$ in thousands	-428,739	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
Total assets	US$ in thousands	4,054,090	4,503,170	4,582,490	4,602,420	4,561,100	4,554,430	4,508,760	4,563,240	977,405	992,929	981,205	967,934	932,106	920,192	880,216	845,626	821,592	797,182	773,501	750,591
Operating ROA		-10.58%	1.06%	1.51%	1.58%	1.11%	0.82%	0.71%	0.50%	4.39%	5.90%	6.20%	7.26%	8.26%	8.06%	8.39%	8.41%	8.54%	8.47%	8.57%	9.05%

November 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-428,739K ÷ $4,054,090K
= -10.58%

Neogen Corporation's operating return on assets (Operating ROA) has shown a declining trend over the analyzed period. Starting at 9.05% in November 2019, the ratio decreased to 5.90% by May 2022, indicating a reduction in the company's operating efficiency. The trend continued with a significant drop to 0.50% in November 2022.

However, there was a slight improvement in the subsequent periods, reaching 1.51% by February 2024. Despite this improvement, the Operating ROA remained relatively low compared to previous levels, suggesting that Neogen Corporation may be facing challenges in generating profits from its assets efficiently.

The ratio further decreased to -10.58% in November 2024, reflecting a negative return on assets during that period. This sharp decline may raise concerns about the company's operational performance and asset utilization.

In summary, Neogen Corporation's Operating ROA has exhibited a volatile pattern with periods of decline and slight recovery, indicating fluctuations in the company's ability to generate profits from its assets effectively. Additional analysis of the factors influencing these fluctuations would be necessary to understand the underlying issues impacting the company's financial performance.