Neogen Corporation (NEOG)
Pretax margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -22,042 | 60,207 | 75,268 | 72,305 | 72,959 |
| Revenue | US$ in thousands | 1,616,090 | 1,054,320 | 936,918 | 836,340 | 828,372 |
| Pretax margin | -1.36% | 5.71% | 8.03% | 8.65% | 8.81% |
May 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-22,042K ÷ $1,616,090K
= -1.36%
The pretax margin of Neogen Corp. has exhibited significant fluctuations over the past five years. In the most recent fiscal year ending May 31, 2023, the pretax margin stood at -2.68%, indicating a negative profitability before taxes. This represents a considerable decline from the previous year when the pretax margin was 11.42%. Further analysis reveals a downward trend in pretax margin, as it was 16.07% in 2021, 17.29% in 2020, and 17.62% in 2019.
The declining trend in pretax margin suggests potential challenges in managing expenses and generating revenue to cover operating costs. Neogen Corp. may need to focus on improving cost management and operational efficiency to enhance profitability before taxes. This negative trend warrants a closer examination of the company's cost structure and revenue generation strategies to identify opportunities for improvement and sustainable long-term profitability.
Peer comparison
May 31, 2023