Neogen Corporation (NEOG)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-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	73,474
Revenue (ttm)	US$ in thousands	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	722,206
Pretax margin		-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%	10.17%

August 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-23,515K ÷ $1,780,298K
= -1.32%

The pretax margin of Neogen Corporation has fluctuated over the specified period. The measurement indicates the company's ability to generate profits before accounting for taxes as a percentage of its total revenue.

In the most recent period ending August 31, 2024, the pretax margin was -1.32%, which implies that the company incurred losses before tax relative to its revenue. This negative trend should be a matter of concern for investors and stakeholders as it signifies a potential lack of profitability.

Conversely, the pretax margin was highest at 11.31% in the quarter ending February 28, 2021. This indicates that during that period, Neogen Corporation was successful in generating healthy profits before tax compared to its total revenue.

It is noteworthy that the company experienced a significant decline in profitability from the last positive pretax margin of 6.82% in May 31, 2022, to consecutive negative margins in the following periods. This downward trend may raise questions about the company's operational efficiency and financial health.

In conclusion, Neogen Corporation's pretax margin has shown a mixed performance over the analyzed periods, with fluctuations indicating varying levels of profitability or losses before tax. Investors should closely monitor the company's financial performance and management strategies to assess its ability to generate sustainable profits in the future.