Neogen Corporation (NEOG)
Pretax margin
| Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -501,750 | -23,515 | -256 | 3,306 | -27,038 | -22,042 | -10,783 | -1,880 | 45,139 | 60,207 | 61,444 | 70,778 | 77,185 | 75,268 | 76,299 | 74,572 | 74,463 | 72,305 | 70,626 | 72,999 |
| Revenue (ttm) | US$ in thousands | 1,792,485 | 1,780,298 | 1,817,638 | 1,800,899 | 1,778,001 | 1,592,370 | 1,401,365 | 1,227,465 | 1,062,406 | 1,054,318 | 901,557 | 761,778 | 730,744 | 692,784 | 674,433 | 757,462 | 743,068 | 727,266 | 727,954 | 723,616 |
| Pretax margin | -27.99% | -1.32% | -0.01% | 0.18% | -1.52% | -1.38% | -0.77% | -0.15% | 4.25% | 5.71% | 6.82% | 9.29% | 10.56% | 10.86% | 11.31% | 9.84% | 10.02% | 9.94% | 9.70% | 10.09% |
November 30, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-501,750K ÷ $1,792,485K
= -27.99%
Neogen Corporation's pretax margin has experienced fluctuations over the years, with a general downward trend in recent periods. The pretax margin, which measures the company's profitability before taxes, was relatively stable around the 10% mark from November 2019 to August 2021. However, there was a significant increase to 11.31% in February 2021, followed by a gradual decline.
Starting from November 2021, Neogen's pretax margin began to decrease notably, dropping to 6.82% in February 2022, 5.71% in May 2022, and further declining to 0.18% by November 2023. The trend continued to worsen, with the pretax margin turning negative in February 2023 and staying negative through August 2024. The most significant decline occurred in November 2024 when the pretax margin plummeted to -27.99%.
This alarming trend suggests that Neogen Corporation's profitability before taxes has deteriorated significantly in recent periods, raising concerns about the company's financial health and operational efficiency. The management of Neogen Corporation may need to investigate the root causes of these declining pretax margins and implement strategic measures to address the profitability challenges.
Peer comparison
Nov 30, 2024