Neogen Corporation (NEOG)
Pretax margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -14,305 | -22,042 | 60,207 | 75,268 | 72,305 |
| Revenue | US$ in thousands | 924,222 | 822,447 | 527,159 | 468,459 | 418,170 |
| Pretax margin | -1.55% | -2.68% | 11.42% | 16.07% | 17.29% |
May 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-14,305K ÷ $924,222K
= -1.55%
Neogen Corporation's pretax margin has shown a declining trend over the past five years. The pretax margin was at a healthy level of 17.29% on May 31, 2020, indicating efficient cost management and profitability. However, there was a slight decrease to 16.07% by May 31, 2021.
The trend took a significant downturn in the following years, with the pretax margin dropping to 11.42% by May 31, 2022, reflecting potential challenges in maintaining profitability. The situation worsened further as the margin turned negative, reaching -2.68% by May 31, 2023, and deteriorating to -1.55% by May 31, 2024.
The declining pretax margin suggests that Neogen Corporation may be facing increasing costs relative to its revenue, which could impact its overall profitability and financial health. It is essential for the company to address these issues and implement strategies to improve its margin in order to sustain long-term success and investor confidence.
Peer comparison
May 31, 2024