Neogen Corporation (NEOG)
Return on equity (ROE)
Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net income (ttm) | US$ in thousands | -485,263 | -476,328 | -23,533 | -9,421 | 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 |
Total stockholders’ equity | US$ in thousands | 2,660,350 | 2,669,070 | 3,135,190 | 3,144,140 | 3,146,170 | 3,147,570 | 3,146,180 | 3,134,220 | 3,125,560 | 3,106,260 | 883,798 | 887,374 | 875,544 | 865,476 | 855,363 | 840,377 | 807,683 | 777,395 | 751,546 | 725,177 |
ROE | -18.24% | -17.85% | -0.75% | -0.30% | 0.05% | 0.37% | -0.84% | -0.73% | -0.43% | -0.52% | 4.12% | 5.44% | 5.61% | 6.59% | 7.26% | 7.24% | 7.61% | 7.76% | 8.07% | 8.20% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-485,263K ÷ $2,660,350K
= -18.24%
Neogen Corporation's return on equity (ROE) has shown a declining trend over the past several years, dropping from a peak of 8.20% as of May 31, 2020, to a low of -18.24% as of February 28, 2025. This downward trajectory indicates that the company's ability to generate profits from shareholders' equity has deteriorated significantly.
The declining ROE may suggest that Neogen Corporation is facing challenges in effectively utilizing its equity capital to generate returns for its shareholders. A negative ROE, especially in the later periods, indicates that the company's net income is insufficient to cover its equity base, which could be a concern for investors and stakeholders.
Investors and analysts may need to further investigate the reasons behind the deteriorating ROE, such as declining profitability, increasing debt levels, or inefficient asset utilization. It is essential for the company to address these issues to improve its profitability and restore confidence among investors.
Peer comparison
Feb 28, 2025