Neogen Corporation (NEOG)

Pretax margin

		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	May 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-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	72,959
Revenue (ttm)	US$ in thousands	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	718,610
Pretax margin		-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%	10.15%

February 29, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-256K ÷ $1,817,638K
= -0.01%

Neogen Corporation's pretax margin, which reflects the efficiency of the company in managing its operating expenses in relation to its revenue before taxes, has displayed fluctuations over the past few quarters. The pretax margin was slightly negative in the most recent quarter, standing at -0.01%, marking a marginal loss. However, prior to this, in the Nov 30, 2023, quarter, the company managed to achieve a pretax margin of 0.18%, indicating a slight improvement.

Looking further back, the company experienced more substantial challenges in the Aug 31, 2023, quarter and the May 31, 2023, quarter, where the pretax margins were -1.52% and -1.38%, respectively. This indicates that during these periods, Neogen Corporation struggled to efficiently manage its expenses in comparison to its revenue.

On a positive note, in the May 31, 2022, quarter and the Feb 28, 2022, quarter, Neogen Corporation demonstrated strong pretax margins of 6.82% and 9.29%, respectively. This suggests that the company was able to effectively control its costs and generate higher profitability during these periods.

Overall, the pretax margin of Neogen Corporation has experienced fluctuations in recent quarters, showcasing both strengths and areas for improvement in the company's cost management and operational efficiency.