Neogen Corporation (NEOG)
Return on equity (ROE)
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 59,591 | 60,176 |
| Total stockholders’ equity | US$ in thousands | 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 | 711,871 | 690,917 | 660,306 | 637,899 |
| ROE | 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% | 8.28% | 8.66% | 9.02% | 9.43% |
February 29, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,566K ÷ $3,146,170K
= 0.05%
Neogen Corporation's return on equity (ROE) has shown fluctuations over the past several quarters. The ROE figures from Nov 30, 2019, to Nov 30, 2020, saw a generally upward trend, starting at 8.66% and culminating at 9.43%. This indicated an improvement in the company's ability to generate profits from shareholders' equity during that period.
However, the ROE figures for the next several quarters from Feb 28, 2021, to Nov 30, 2023, displayed a mixed performance. The ROE dropped to as low as -0.84% in Aug 31, 2023, and improved slightly in the following periods but remained negative. These negative ROE figures suggest that the company is not efficiently utilizing its shareholders' equity to generate profits during these periods.
It is important for Neogen Corporation to closely assess the factors impacting its ROE and take necessary actions to improve the ratio in order to enhance shareholder value and overall financial performance.
Peer comparison
Feb 29, 2024