Neogen Corporation (NEOG)
Return on assets (ROA)
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -22,870 | 48,307 | 60,882 | 59,475 | 60,176 |
| Total assets | US$ in thousands | 4,554,430 | 992,929 | 920,192 | 797,182 | 695,740 |
| ROA | -0.50% | 4.87% | 6.62% | 7.46% | 8.65% |
May 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-22,870K ÷ $4,554,430K
= -0.50%
The return on assets (ROA) of Neogen Corp. has exhibited a declining trend over the past five years. The ROA decreased from 8.65% in 2019 to -0.50% in 2023. This negative ROA in 2023 indicates that the company's net income generated from its assets was insufficient to cover the asset base.
The declining trend suggests that Neogen Corp. may be experiencing challenges in effectively utilizing its assets to generate profits. This could be a result of increased expenses, declining revenues, or inefficient asset management. It is important for Neogen Corp. to address the factors contributing to the declining ROA and consider implementing measures to improve asset efficiency and profitability.
Peer comparison
May 31, 2023