Neogen Corporation (NEOG)

Return on assets (ROA)

May 31, 2025 May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021
Net income US$ in thousands -1,092,040 -9,421 -22,870 48,307 60,882
Total assets US$ in thousands 3,443,840 4,548,830 4,554,430 992,929 920,192
ROA -31.71% -0.21% -0.50% 4.87% 6.62%

May 31, 2025 calculation

ROA = Net income ÷ Total assets
= $-1,092,040K ÷ $3,443,840K
= -31.71%

The analysis of Neogen Corporation’s return on assets (ROA) over the specified period reveals a significant downward trend. As of May 31, 2021, the company's ROA stood at 6.62%, indicating a productive deployment of its assets to generate profits. By May 31, 2022, the ROA declined to 4.87%, reflecting a deterioration in asset efficiency, although it remained positive.

Moving forward, the data shows a dramatic shift into negative territory by May 31, 2023, with an ROA of -0.50%, indicating that the company was no longer effectively generating profits from its assets, and was instead incurring losses relative to its asset base. The negative trend persisted into May 31, 2024, with the ROA marginally improving to -0.21%, but still negative, suggesting marginal losses continue.

The most notable deterioration occurs by May 31, 2025, with the ROA plummeting to -31.71%. This substantial decline indicates that the company experienced significant losses relative to its asset base during this period, pointing toward major operational or financial challenges. The trajectory underlying this data suggests increasing inefficiencies or adverse events impacting the company's profitability relative to its asset investments over the analyzed timeframe.