Neogen Corporation (NEOG)
Pretax margin
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -508,307 | -504,402 | -31,577 | -14,305 | -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 |
| Revenue (ttm) | US$ in thousands | 905,996 | 913,828 | 912,199 | 924,222 | 929,238 | 918,681 | 919,085 | 822,447 | 720,730 | 630,719 | 531,203 | 527,159 | 514,491 | 502,956 | 487,439 | 468,459 | 450,108 | 433,268 | 426,071 | 418,170 |
| Pretax margin | -56.10% | -55.20% | -3.46% | -1.55% | -0.03% | 0.36% | -2.94% | -2.68% | -1.50% | -0.30% | 8.50% | 11.42% | 11.94% | 14.07% | 15.83% | 16.07% | 16.95% | 17.21% | 17.48% | 17.29% |
February 28, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-508,307K ÷ $905,996K
= -56.10%
The pretax margin of Neogen Corporation has shown a declining trend over the past few years, indicating a decreasing profitability before taxes.
From May 31, 2020, to August 31, 2021, the pretax margin remained relatively stable, hovering around the range of 17% to 16%. However, starting from November 30, 2021, the pretax margin began to decline steeply. By August 31, 2022, the pretax margin had fallen to 8.50%, signifying a significant decrease in profitability.
The downward trend continued, with the pretax margin reaching negative figures from November 30, 2022, to February 28, 2025, demonstrating that Neogen Corporation's operating expenses and other costs were surpassing its gross profit, resulting in losses before tax.
The substantial decline in the pretax margin from 17.29% on May 31, 2020, to -56.10% by February 28, 2025, raises concerns about the company's financial performance and overall profitability. Neogen Corporation may need to reassess its cost structure, revenue generation strategies, and operational efficiency to improve its profitability and financial health.
Peer comparison
Feb 28, 2025