Neogen Corporation (NEOG)

Return on assets (ROA)

May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Net income US$ in thousands -9,421 -22,870 48,307 60,882 59,475
Total assets US$ in thousands 4,548,830 4,554,430 992,929 920,192 797,182
ROA -0.21% -0.50% 4.87% 6.62% 7.46%

May 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-9,421K ÷ $4,548,830K
= -0.21%

Based on the data provided, Neogen Corporation's Return on Assets (ROA) has shown a gradual decline over the last few years. As of May 31, 2020, the ROA was 7.46%, indicating that for every dollar of assets the company had, it generated a profit of 7.46 cents. However, by May 31, 2024, the ROA had decreased to -0.21%, signifying a negative return on assets.

This downward trend in ROA suggests that Neogen Corporation may be facing challenges in efficiently utilizing its assets to generate profits, potentially due to factors such as declining revenues, increasing costs, or ineffective asset management. It is essential for the company to investigate the root causes behind this decline and implement strategies to improve asset productivity and profitability in order to enhance overall financial performance and sustainability.