Neogen Corporation (NEOG)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands -474,400 -16,615 1,566 11,778 -26,576 -22,870 -13,483 -16,230 36,439 48,307 49,108 57,042 62,099 60,882 61,469 60,292 60,683 59,475 58,943 59,816
Total assets US$ in thousands 4,054,090 4,503,170 4,582,490 4,602,420 4,561,100 4,554,430 4,508,760 4,563,240 977,405 992,929 981,205 967,934 932,106 920,192 880,216 845,626 821,592 797,182 773,501 750,591
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%

November 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-474,400K ÷ $4,054,090K
= -11.70%

Neogen Corporation's return on assets (ROA) has exhibited a declining trend over the past few years. From November 30, 2019, where the ROA was 7.97%, it gradually decreased to 5.00% by February 28, 2022. Subsequently, the ROA continued to decline significantly, reaching negative values by November 30, 2022, and hovering around negative figures until May 31, 2023. This negative trend reversed by November 30, 2023, where the ROA improved to 0.26%, albeit still relatively low. However, the latest available data as of November 30, 2024, shows a sharp decline to -11.70%.

The declining trend in ROA suggests a potential weakening in Neogen Corporation's ability to generate profits relative to its total assets. It is essential for the company to address this issue and strategically allocate its resources to enhance profitability and efficiency in utilizing its assets effectively. Further investigation into the company's operational performance and financial health is recommended to understand the underlying factors contributing to the negative ROA and to devise appropriate measures to improve it.