Neogen Corporation (NEOG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 25.21% | 25.58% | 26.06% | 25.80% | 25.90% | 25.49% | 24.82% | 24.21% | 23.09% | 23.05% | 26.14% | 30.47% | 30.76% | 31.04% | 31.00% | 26.48% | 26.70% | 26.99% | 26.80% | 26.86% |
| Operating profit margin | -23.92% | 2.69% | 3.80% | 4.04% | 2.85% | 2.36% | 2.29% | 1.86% | 4.04% | 5.56% | 6.75% | 9.22% | 10.54% | 10.71% | 10.95% | 9.39% | 9.44% | 9.28% | 9.11% | 9.38% |
| 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% |
| Net profit margin | -26.47% | -0.93% | 0.09% | 0.65% | -1.49% | -1.44% | -0.96% | -1.32% | 3.43% | 4.58% | 5.45% | 7.49% | 8.50% | 8.79% | 9.11% | 7.96% | 8.17% | 8.18% | 8.10% | 8.27% |
Neogen Corporation's profitability ratios have shown fluctuations over the years. Starting with the gross profit margin, it has generally been around the mid to high 20% range, with a peak of 31.04% in May 31, 2021. However, it experienced a decline in the most recent periods, dropping to 25.21% in November 30, 2024.
Moving on to the operating profit margin, the company maintained levels around 9-11% from 2019 to 2021, but experienced a significant decline to -23.92% in November 30, 2024, pointing to a poor operational performance in that period.
Similarly, the pretax margin of Neogen Corporation followed a decreasing trend from 2019 to 2022, with negative values in the last few periods. This indicates challenges in generating profits before accounting for taxes and other expenses.
Lastly, the net profit margin, which reflects the bottom line profitability after all expenses, also showed a downward trajectory, with negative margins in some periods, such as November 30, 2022 and November 30, 2024.
Overall, Neogen Corporation's profitability has been volatile, with declines in margins over the years, signaling potential issues with cost management, revenue generation, and overall profitability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.58% | 1.06% | 1.51% | 1.58% | 1.11% | 0.82% | 0.71% | 0.50% | 4.39% | 5.90% | 6.20% | 7.26% | 8.26% | 8.06% | 8.39% | 8.41% | 8.54% | 8.47% | 8.57% | 9.05% |
| Return on assets (ROA) | -11.70% | -0.37% | 0.03% | 0.26% | -0.58% | -0.50% | -0.30% | -0.36% | 3.73% | 4.87% | 5.00% | 5.89% | 6.66% | 6.62% | 6.98% | 7.13% | 7.39% | 7.46% | 7.62% | 7.97% |
| Return on total capital | -12.48% | 0.64% | 1.02% | 1.07% | 0.72% | 0.57% | 0.58% | 0.57% | 4.86% | 6.61% | 6.95% | 8.12% | 9.00% | 8.83% | 9.14% | 9.15% | 9.33% | 9.31% | 9.31% | 9.83% |
| Return on equity (ROE) | -17.77% | -0.53% | 0.05% | 0.37% | -0.84% | -0.73% | -0.43% | -0.52% | 4.12% | 5.44% | 5.61% | 6.59% | 7.26% | 7.24% | 7.61% | 7.76% | 8.07% | 8.20% | 8.28% | 8.66% |
Neogen Corporation's profitability ratios have shown a declining trend over the past few years. The Operating return on assets (Operating ROA) has decreased from 9.05% in November 2019 to 0.50% in February 2023, before recovering slightly to 1.06% in November 2024. Similarly, the Return on assets (ROA) has decreased from 7.97% in November 2019 to -11.70% in November 2024. The Return on total capital also witnessed a decline, from 9.83% in November 2019 to -12.48% in November 2024. Furthermore, the Return on equity (ROE) decreased from 8.66% in November 2019 to -17.77% in November 2024.
These declining profitability ratios reflect potential challenges in Neogen Corporation's operational efficiency, asset utilization, and overall financial performance. It may indicate issues such as declining profitability, ineffective capital utilization, decreasing shareholder value, and potential financial distress. As an analyst, further investigation into the company's operations, financial management, and strategic decisions is recommended to understand the root causes of the deteriorating profitability ratios and to identify opportunities for improvement.