Neogen Corporation (NEOG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,134,220 | 887,374 | 840,377 | 725,177 | 637,899 |
| ROE | -0.73% | 5.44% | 7.24% | 8.20% | 9.43% |
May 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-22,870K ÷ $3,134,220K
= -0.73%
Neogen Corp.'s return on equity (ROE) has experienced a decline over the past five years. In 2023, the ROE stood at -0.73%, reflecting a negative return for the year. This is a significant decrease from the 5.44% ROE in 2022 and is part of a downward trend in ROE over the last five years.
The declining ROE may suggest that Neogen Corp. is not effectively generating profits from the shareholders' equity, which could be a concern for investors and stakeholders. It may be important for the company to assess its operational efficiency, financing strategies, and overall financial management to improve its ROE in the future. Additionally, external factors such as industry trends and economic conditions should also be considered when evaluating the company's ROE performance.
Peer comparison
May 31, 2023