Neogen Corporation (NEOG)

Operating return on assets (Operating ROA)

		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	May 31, 2019
Operating income (ttm)	US$ in thousands	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	68,094
Total assets	US$ in thousands	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	721,144	695,740
Operating ROA		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%	9.41%	9.79%

February 29, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $69,048K ÷ $4,582,490K
= 1.51%

Neogen Corporation's operating return on assets (ROA) has exhibited fluctuations over the past several quarters. The trend indicates that the company's ability to generate operating income from its assets has varied, with a general downward trajectory observed from the beginning of the analyzed period.

From November 2019 to February 2020, operating ROA was relatively stable, ranging between 8.47% and 9.05%. However, a significant drop occurred in the following quarters, with the ratio falling below 1% in May 2020 and February 2022.

Subsequently, Neogen Corporation's operating ROA showed signs of recovery in the latter half of 2022, particularly notable with a substantial increase to 5.90% in August 2022 and a sharp rise to 4.39% in November 2022. This positive momentum continued into the first half of 2023, with the ratio climbing to 1.58% in November 2023.

Despite the improvement in recent quarters, the most recent data point of 1.51% in February 2024 indicates a slight decline in operating ROA compared to the preceding quarter. It is worth noting the volatility in the company's operating performance as reflected in the fluctuations in operating ROA over the analyzed period. Further analysis and monitoring of Neogen Corporation's financial performance are warranted to determine the underlying factors contributing to these changes in operating return on assets.