Neogen Corporation (NEOG)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,092,040 | -14,305 | -22,042 | 60,207 | 75,268 |
| Revenue | US$ in thousands | 894,661 | 924,222 | 822,447 | 527,159 | 468,459 |
| Pretax margin | -122.06% | -1.55% | -2.68% | 11.42% | 16.07% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $-1,092,040K ÷ $894,661K
= -122.06%
The analysis of Neogen Corporation’s pretax margin over the specified periods reveals a significant decline in profitability. As of May 31, 2021, the pretax margin stood at 16.07%, indicating a relatively healthy profit level before taxes. However, by May 31, 2022, the pretax margin decreased substantially to 11.42%, reflecting a deterioration in earnings efficiency or increased costs impacting profitability.
Moving into the subsequent years, the pretax margin transitioned into negative territory, with May 31, 2023, showing a margin of -2.68%. This indicates that the company’s earnings before taxes shifted from profit to a pre-tax loss. The negative trend persisted into May 31, 2024, with the margin slightly improving to -1.55%, suggesting a marginal reduction in pre-tax losses.
The most striking change occurs by May 31, 2025, where the pretax margin plummets to -122.06%. This extraordinarily negative figure suggests that the company experienced an extensive pre-tax loss far exceeding its revenue, potentially due to extraordinary expenses, impairments, or other significant financial challenges. The trend demonstrates a marked decline in the company's profitability trajectory over the four-year span, moving from a profitable position to a severely negative one.
Peer comparison
May 31, 2025