Neogen Corporation (NEOG)

Operating return on assets (Operating ROA)

		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	Aug 31, 2019
Operating income (ttm)	US$ in thousands	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	67,879
Total assets	US$ in thousands	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	721,144
Operating ROA		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%	9.41%

August 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $47,880K ÷ $4,503,170K
= 1.06%

Neogen Corporation's operating return on assets (operating ROA) has fluctuated over the past two years, ranging from a low of 0.50% in November 2022 to a high of 9.41% in August 2019. The operating ROA indicates how efficiently the company generates operating profits from its assets.

In the most recent period ending August 31, 2024, Neogen Corporation's operating ROA stood at 1.06%, showing a slight decrease from the previous period. This decrease could be attributed to changes in the company's operating income relative to its assets.

Over the last few years, Neogen Corporation has generally maintained an operating ROA above 1%, reflecting a reasonable ability to generate operating profits in relation to its assets. However, the operating ROA has experienced variability, suggesting fluctuations in operating performance or asset utilization efficiency.

The significant increase in operating ROA observed in the earlier periods, notably peaking at 9.41% in August 2019, indicates a period of improved profitability and efficiency in utilizing assets to generate operating income.

Overall, monitoring Neogen Corporation's operating ROA trend can provide insights into the company's operational efficiency, profitability, and asset management practices, assisting stakeholders in assessing its financial performance and potential future prospects.