Neogen Corporation (NEOG)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,669,070 3,135,190 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
ROE -17.77% -0.53% 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%

November 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-474,400K ÷ $2,669,070K
= -17.77%

Neogen Corporation's return on equity (ROE) has exhibited a downward trend over the past few years. The ROE decreased from 8.66% in November 2019 to -17.77% in November 2024. This decline indicates a weakening profitability relative to the shareholders' equity. A negative ROE, as seen in some periods, suggests that the company's net income was insufficient to cover the shareholders' investment, leading to a loss.

The decreasing trend in ROE may indicate challenges in efficiently utilizing the company's assets to generate profits for the shareholders. It could be a sign of operational inefficiencies, declining profitability, or mismanagement of the company's resources.

Investors and analysts may view the declining ROE as a red flag and a cause for concern regarding Neogen Corporation's financial health and operational performance. Further in-depth analysis of the company's financial statements, business operations, and market conditions may be necessary to identify the root causes of the declining ROE and to formulate strategies for improvement.